Nov. 9 - Eight Minnesota Cities Awarded Funding for Water Projects

ST. PAUL – Eight Minnesota communities will receive $10.8 million in funding from the Minnesota Public Facilities Authority (PFA) for improvements to drinking water and wastewater plants.

The financing was awarded for projects in Alexandria, Zimmerman, Eden Valley, Wheaton, Mountain Iron, Shelly, Martin County–Truman and Seaforth. Alexandria received a $3.8 million loan to rehabilitate its wastewater treatment plant.

“This funding will improve the water supply in these eight communities and also create jobs,” said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development (DEED). “PFA funding for water projects enhances community vitality and contributes to better health.”

Funding for the projects will come from the PFA’s Drinking Water Revolving Fund, Clean Water Revolving Fund and Wastewater Infrastructure Fund.

Alexandria, $3.8 million
The funding will help pay for rehabilitating the city’s water treatment plant and adding three filters. The package consists of a $3.8 million loan at 2.4 percent interest over 20 years. The loan will save the city about $640,000 compared with market-rate financing. The city, in west central Minnesota, has a population of 12,415.
Local Contact: Jerry Wright, finance manager, 320-763-6501

Zimmerman, $2.5 million
The funding will pay for improvements to the wastewater treatment system in this central Minnesota city of 4,960 residents. The package consists of a $2.5 million loan at 2.37 percent interest over 20 years. The loan will save the city about $450,000 compared with market-rate financing.
Local contact:  Randy Piasecki, interim administrator, 763-856-4666

Eden Valley, $946,918
Eden Valley will rehabilitate its sewer system, the first of two water projects in this central Minnesota city of 900 people. Funding for the sewer system consists of a $660,457 loan at 1.7 percent interest over 20 years. This loan will save the city about $143,000 compared with market-rate financing. In the second project, city officials plan to replace water mains in the northeastern and southeastern parts of Eden Valley. The funding for this project consists of a $286,461 loan at 1 percent interest over 20 years. This loan will save the city an additional $83,000.
Local Contact: Mona Haag, clerk-treasurer, 320-453-5251

Wheaton, $900,000
Wheaton, which has a population of 1,500 and is in west central Minnesota, plans to rehabilitate a lift station and install an additional force main for its wastewater transmission system. The funding consists of a $900,000 loan at 1.1 percent interest over 20 years. The loan will save the city about $266,000 compared with market-rate financing.
Local Contact: Jamie Beyer, administrator, 320-563-4110

Mountain Iron, $599,250
The funding will pay for rehabilitating components of the wastewater treatment plant in this northeastern Minnesota city of 2,820. The funding consists of a $599,250 loan at 2.2 percent interest over 20 years. The city will also receive a grant of $300,000 from the Iron Range Resources and Rehabilitation Board.  The PFA loan will save the city and its taxpayers about $100,000 compared with market-rate financing.
Local Contact:  Craig Wainio, city administrator, 218-748-7570

Shelly, $884,000
The funding will pay for expanding and upgrading the city’s wastewater treatment system. The PFA funding consists of a Wastewater Infrastructure Fund grant of $884,000, which will be combined with $887,000 in grants and loans from the U.S. Department of Agriculture Rural Development Agency. Shelly, in northwestern Minnesota, has a population of 240.
Local Contact: Jodi Neil, city clerk, 218-886-8355

Truman, $695,250
The funding, which was awarded to Martin County, will pay for replacing a tile drainage ditch to eliminate stormwater inflow to the wastewater treatment collection system in Truman, a city of 1,175 in south central Minnesota The funding consists of a 20-year loan of $695,250 at 1 percent interest. The loan will save the city about $220,000 compared with market-rate financing.
Local Contact: James Forshee, county auditor/treasurer 507-238-3211

Seaforth, $549,000
The funding will pay for installing a gravity wastewater collection system and mounds for wastewater treatment. The PFA funding consists of a Wastewater Infrastructure Fund grant of $549,000, which will be combined with $427,000 in grants and loans from the U.S. Department of Agriculture Rural Development Agency. Seaforth, located in southwestern Minnesota, has a population of 90.
Local Contact: Pam Sheeran, city clerk, 507-984-5432

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