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News Release
Release No. STELPRD4021526
Printable Version  Printable Version

Lexington, Kentucky, Jul 10, 2013 -- USDA Rural Development State Director Tom Fern has announced $6,400,000 in additional USDA funds ($5,000,000 loan/ $1,400,000 grant) to upgrade the City of Danville’s water infrastructure. The United States Department of Agriculture remains focused on carrying out its mission, despite a time of significant budget uncertainty. Today’s announcement is one part of the Department’s efforts to strengthen the rural economy.

Rural Development funds will be used to increase the capacity of the existing water treatment plant from 8.1 to 12 MGD, construct one new water storage tank, construct a new 24-inch raw water main at Herrington Lake, and perform other improvements to the facility in order to meet current and future customer demands and to meet current regulatory requirements. The City of Danville is a regional water system serving a four-county area in central Kentucky with an approximate population of 17,409. The repayment terms for the loan portion are 40 years at an interest rate of 2.75 percent. USDA previously announced in March of 2013, the approval of an $8,600,000 loan for the water improvement project. The USDA funds will be supplemented by funding through the Commonwealth of Kentucky – Kentucky Infrastructure Authority, local bond issuance and funding by the City of Danville. The total project cost is estimated to be $29,000,000.

“I commend the City of Danville for their commitment to a regional approach to supplying clean, safe and reliable water to rural Kentuckians in central Kentucky,” said Fern. “USDA is proud to work in partnership with our state partner and the City of Danville to make these important upgrades to their regional water system.”

For information on other projects funded by USDA Rural Development, please visit Rural Development’s interactive web map featuring program funding and success stories for fiscal years 2009-2012. The data can be found at:

President Obama's plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President's leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.

USDA’s investments in rural communities support the rural way of life, which stands as the backbone of our American values. President Obama and Agriculture Secretary Tom Vilsack are committed to a smarter use of Federal resources to foster sustainable economic prosperity and ensure the government is a strong partner for businesses, entrepreneurs and working families in rural communities.

USDA, through its Rural Development mission area, administers and manages housing, business and community infrastructure and facility programs through a national network of state and local offices. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America.

USDA has made a concerted effort to deliver results for the American people, even as USDA implements sequestration – the across-the-board budget reductions mandated under terms of the Budget Control Act. USDA has already undertaken historic efforts since 2009 to save more than $828 million in taxpayer funds through targeted, common-sense budget reductions. These reductions have put USDA in a better position to carry out its mission, while implementing sequester budget reductions in a fair manner that causes as little disruption as possible.

Last Modified:08/21/2014 
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