SARVER - The construction of three new water tanks in the Buffalo Township Municipal Authority will not cause a rate increase for customers.

Don Amadee, general manager of the authority, said the project would be covered by a $2.5 million loan from the Pennsylvania Infrastructure Investment Authority, or PennVEST.

"We're not projecting any type of rate increase as a result of this project," Amadee said.

State Rep. Guy Travaglio, D-11th, announced last week the authority has been approved for the 20-year, low-interest loan.

Travaglio said the project would provide a drinking water supply to more than 2,200 homes in low- and middle-income areas of the authority's system.

The authority serves seven municipalities in the southeast corner of Butler County.

Amadee said one of the new tanks would replace the nearly 100-year old Freeport Reservoir. He said the two other tanks would be built in Buffalo Township, one on Riemer Road and the other to replace a tank on Primrose Drive.

Amadee hopes construction of the tanks will start by this summer. He said the exact date depends on how long it takes to process all of the paperwork for the loan.

Amadee said the first five years of the loan would be paid back at 1 percent interest and the final 15 years would be paid back with 2.77 percent interest.