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Date: August 27, 2008 For Immediate Release |
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City of Backus Receives Low-Interest Loan for Water Treatment InfrastructureST. PAUL – A low-interest loan of nearly $164,195 has been awarded to the city of Backus to pay for maintenance and repair of a 50,000-gallon water tower. Financing is from the Minnesota Public Facilities Authority (PFA), an independent infrastructure financing authority that was created by the Legislature in 1987. Backus-area residents can expect to save $35,484 on debt service costs, compared with borrowing at market rates. The interest rate for the PFA loan is 2.27 percent for a 20-year term. "This project will maintain the water quality for residents of Backus," 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." Wade Jackson, consulting city engineer with Widseth Smith Nolting & Associates, said this project will ensure a safe water storage system for the city of Backus for the next 20 years and will help maintain its water quality. The project is expected to begin in mid-September and be completed by mid-October. Backus, which is located in northwest Minnesota’s Cass County, has a population of nearly 325. 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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