Department of Natural Resources awards $5.5 million loan to Sedalia
City will plan and design wastewater system improvements
JEFFERSON CITY, MO, SEPT. 23, 2026 - The Missouri Department of Natural Resources has awarded a $5.5 million loan to the city of Sedalia for planning and design work related to the city’s ongoing wastewater improvement project.
The loan will provide vital interim financing to cover early engineering and administrative costs while the city works with the department to secure a larger loan and grant funding package for its wastewater project. The city estimates the larger construction project will cost $55.98 million and expects construction to start in 2027.
The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The department’s goal for the planning and design loan program is to provide a cost-effective alternative to expensive private financing that allows communities to develop and deliver vital infrastructure projects for their citizens. These planning and design loans bear no interest and come with a five-year term. The department estimates its funding will save the city’s ratepayers approximately $1.1 million in interest costs over the loan’s five-year term.
“Funding from Missouri’s State Revolving Fund positively affects our communities, helping them grow and develop for years to come,” said Jake Buxton, director of the Department of Natural Resources.
The department’s Clean Water State Revolving Fund finances improvements to wastewater treatment facilities, sewer collection system rehabilitation and extensions, and combined sewer overflow corrections. The fund also finances security, efficiency and conservation measures. Communities that borrow from the fund benefit from the below-market interest rate and from a department project manager’s assistance throughout the project.
The department is committed to assisting Missouri communities with water and wastewater infrastructure improvement projects. Through its Financial Assistance Center, the department provides funding opportunities for qualified communities with water quality, wastewater and drinking water infrastructure needs. This project will be funded wholly or in part with monies received from the U.S. Environmental Protection Agency.
For more information on wastewater and drinking water funding opportunities, visit Missouri Department of Natural Resources State Revolving Fund (SRF).
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