City of Hawley Receives Low-interest Loans for Drinking
Water and Wastewater Infrastructure
ST. PAUL – A $168,000 low-interest Drinking Water loan and a $133,000 low-interest wastewater loan were awarded to the City of Hawley by the Minnesota Public Facilities Authority. The Drinking Water loan will be used to replace a water main and hydrant, and related components of Hawley’s drinking water infrastructure. The wastewater loan will finance costs to replace sanitary sewer lines.
"Adequate wastewater treatment and clean drinking water are essential to keep the city healthy and economically vital," said Department of Employment and Economic Development Commissioner and PFA Chair Dan McElroy. "And the substantial interest savings are an added economic benefit to taxpayers and ratepayers."
The Drinking Water loan will enable area ratepayers to save $48,520 on debt service costs, compared to borrowing at market rates. The interest rate for the $168,000 loan is 1.29 percent for a 20-year term. The PFA, an independent infrastructure financing authority, joined with Minnesota Commissioner of Health Sanne Magnan in announcing the Drinking Water 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."
The wastewater loan will enable area ratepayers to save $25,504 on debt service costs, compared to borrowing at market rates. The interest rate for the $133,000 loan is 2.293 percent for a 20-year term. The PFA joined with the Minnesota Pollution Control Agency (MPCA) in announcing the wastewater loan.
"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.
Lisa Jetvig, Hawley city clerk-treasurer, said already the project has created an improved and more dependable delivery system for clean drinking water. The improvements to the sanitary sewer collection system have resulted in more reliable and efficient service to residents.
Hawley is located in western Minnesota’s Clay County and has a population of nearly 2,000. The project is expected to be completed in July 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.
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