1. The board of fund commissioners of the state of Missouri, as authorized by Section 37(h) of Article III of the Constitution of the State of Missouri, may borrow on the credit of this state the sum of twenty million dollars for the purposes of financing and constructing storm water control plans, studies and projects as set out in this chapter. The department shall allocate these funds through grants or loans to municipalities, public sewer districts, sewer districts established pursuant to Article VI, Section 30(a) of the Missouri Constitution, public water districts, or any combination of the same located in a county of the first classification or in any city not within a county or by any county of the first classification.

2. Grants awarded under this section shall be no more than fifty percent of the cost of the plan, study or project.

3. Grants or loans allocated under this section shall be initially offered to eligible recipients in counties of the first classification and in a city not within a county in an amount equal to the percentage ratio that the population of the recipient county or city bears to the total population of all counties of the first classification and cities not within a county as determined by the last decennial census.

4. Grants or loans offered to a city or county under subsection 3 of this section shall be further allocated and initially offered to eligible recipients in any city with a population of at least twenty-five thousand inhabitants located in a county of the first classification in an amount equal to the percentage ratio that the recipient’s population bears to the total population of the county.

5. After the initial offer of grants or loans has been made to eligible recipients under subsections 3 and 4 of this section, any remaining funds may be reallocated to recipients of the initial offer who have eligible projects for such funds until no such funds remain. The reallocation of funds shall be made to eligible recipients with remaining eligible projects in an amount equal to the percentage ratio that the population of the eligible recipient bears to the total population of all other eligible recipients with remaining eligible projects under this subsection.

6. Other provisions of this section notwithstanding, in those cities or counties served by a sewer district established pursuant to Article VI, Section 30(a) of the Constitution of the State of Missouri, any grants or loans awarded shall be disbursed directly to such district.

7. Repayments of storm water loans and any interest payments on such loans shall be deposited in the “Storm Water Loan Revolving Fund”, which is hereby created. The fund shall be used for the purposes of financing and constructing storm water control plans, studies, and projects. The state treasurer shall be custodian of the fund and may approve disbursements from the fund in accordance with sections 30.170 and 30.180. Upon appropriation, money in the fund shall be used solely for the administration of this section. Any moneys remaining in the fund at the end of the biennium shall not revert to the credit of the general revenue fund. The state treasurer shall invest moneys in the fund in the same manner as other funds are invested. Any interest and moneys earned on such investments shall be credited to the fund.