Fort Wayne borrows $108 million for sewer improvements

The loan will finance several projects, including plans to bore a massive tunnel under the city. Wastewater and runoffs would drain into the tunnel during storms, then flow to the water treatment plant instead of overflowing into the rivers.

The state money will also help pay for improvements to the treatment plant, wet weather ponds and the ongoing work to separate the city’s combined sewer system, which lets both sewage and rainwater drain into the rivers when it’s overloaded.

The city is working under a federal mandate to meet clean water regulations and reduce sewage overflows.

By taking the State Revolving Fund loan, Fort Wayne is expected to save about $23.3 million in interest over the life of the loan when compared to traditional loans, the state said in the statement.