Johnstown Sewer Project Approved for $20 Million in State Loans

HARRISBURG – July 18, 2012 – The City of Johnstown’s massive sewer project has received a pair of low-interest state loans totaling more than $20 million, state Sen. John N. Wozniak and state Rep. Bryan Barbin announced today.

“Replacing outdated water and sewer infrastructure is an investment for future generations,” Wozniak said. “This project provides the groundwork for economic revival and protects the environment.”

Johnstown’s sewer system is prone to overflows in wet weather, threatening area waterways and drawing scrutiny from environmental regulators. The city has undertaken a project to replace the faulty sewer lines and upgrade treatment capacity.

“The low-interest loans will help keep rates as low as possible as the city makes this costly investment in its future,” Barbin said. “It represents cooperation at all levels of government to bring local infrastructure into the 21st century.”

The City of Johnstown will receive a $10.9 million loan to replace more than six miles of sanitary sewer lines in the Hornerstown and Walnut Grove area. Johnstown’s Redevelopment Authority will receive a $9.9 million loan for replacement of nearly four miles of interceptor sewer lines in the Roxbury, Moxham, Hornerstown and Walnut Grove areas.

The construction covered by the loans is scheduled to begin in January and will be complete in mid-2015.

The loans, approved today by the Pennsylvania Infrastructure Investment Authority, will be repaid over 20 years at interest rates of 1 percent for the first five years and 1.77 percent thereafter.