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Date: June 30, 2008 For Immediate Release |
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City of Ellendale Receives Low-Interest Loan for Water Treatment InfrastructureST. PAUL – A low-interest loan of nearly $1.2 million has been awarded to the city of Ellendale to pay for replacing several existing undersized water mains and adding additional water mains. Financing is from the Minnesota Public Facilities Authority (PFA), an independent infrastructure financing authority that was created by the Legislature in 1987. Ellendale-area residents can expect to save nearly $360,000 on debt service costs, compared with borrowing at market rates. The interest rate for the PFA loan is 1 percent for a 20-year term. "This project will improve the water quality for residents of Ellendale, as well as lower maintenance and operation costs," said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development. "The financing will provide substantial savings to local ratepayers over the cost of borrowing at market rates." The PFA joined with Minnesota Commissioner of Health Sanne Magnan in announcing the loan. "Making sure people have safe water to drink is one of the most important duties of public health officials," Magnan said. “But safe water doesn’t happen by accident. It requires a strong infrastructure and constant vigilance. The loans provided through the revolving fund are an important tool for making that happen." Wesley Brown, the consulting city engineer with Bolton & Menk Inc., said the improvements will provide a cleaner, more efficient and reliable drinking water distribution system in Ellendale. The water mains that are being replaced are outdated, undersized and deteriorated, resulting in increased maintenance for city staff and inadequate water flows for residents. Construction is expected to be completed by this November. Ellendale, which is located in Steele County, has a population of about 650. The PFA has financed more than $2.5 billion in infrastructure projects. The PFA operates three revolving loan funds for infrastructure projects -- the Drinking Water Revolving Fund, Clean Water Revolving Fund and Transportation Revolving Loan Fund.Upon request, the information in this news release is available in an alternative format |
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