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Date: August 12, 2008 For Immediate Release |
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City of Breckenridge Receives Low-interest Financing for Wastewater InfrastructureST. PAUL – Citizens who live in the City of Breckenridge will have improved wastewater treatment, a cleaner environment and lower financing costs, thanks to a low-interest clean water loan of more than $1.5 million by the Minnesota Public Facilities Authority (PFA). The loan will finance costs associated with the expansion and upgrade of a wastewater treatment facility. Area ratepayers can expect to receive savings of $246,914 on debt service costs, compared to borrowing at market rates. The interest rate for the more than $1.5 million PFA loan is 2.802 percent for a 20-year term. "Adequate wastewater treatment is a key part of keeping the city healthy and economically vital," said Department of Employment and Economic Development Commissioner and PFA Chair Dan McElroy. "The substantial interest savings are an added economic benefit to taxpayers and ratepayers." The PFA, an independent infrastructure financing authority, joined with the Minnesota Pollution Control Agency (MPCA) in announcing the loans. "Low-interest and no-interest loans are a wise use of state dollars. They will protect the environment while providing improved services that promote a strong economy," MPCA Commissioner Brad Moore said. Jeff Muehler, Breckenridge director of public services, said the original wastewater treatment system, which was constructed in 1955, lacks sufficient storage capacity to meet the effluent standards set out by the MPCA. The expansion project, now underway, is necessary to meet the needs of the population. Breckenridge (in Wilkin County) is located in west central Minnesota. The city’s wastewater treatment and collection system serves approximately 3,600 people. The project is expected to be completed by June 2009. The PFA, created by the Legislature in 1987, has financed more than $2.5 billion in infrastructure projects. The PFA operates three revolving loan funds for infrastructure projects, including 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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