Litchfield lands $14.9 million for water/sewer projects

The Minnesota Public Facilities Authority, or PFA, has presented another round of financing for improvements to drinking water and wastewater plants in several small Minnesota towns and cities.

Included on the list is Litchfield, which garnered a $14.9 million package that includes a 20-year federal clean water loan of $7.1 million at a 2.65 interest rate with an addition of $1.8 million in principal forgiveness. The state Wastewater Infrastructure Fund added a $6 million, 0-percent-interest loan for a 33-year term, with payments deferred for the first 20 years. Litchfield got more than 75 percent of the money handed out to five cities in this round of funding.

Willmar got $2.2 million to use for relocating D6 pump stations through a 20-year clean water loan of $1.8 million at 2.5 percent. Included in the package was principal forgiveness of $450,000.

The Minnesota Public Facilities Authority financing includes funding from the American Recovery and Reinvestment Act, the federal stimulus law. Minnesota received $107 million in ARRA money for water infrastructure projects, which will help more than 40 Minnesota communities improve their wastewater, sanitary, sewer and drinking water systems.

“Many of these cities and towns have waited years for funding to rehabilitate their water systems and wastewater plants,” said Dan McElroy, PFA chair and commissioner of the Minnesota Department of Employment and Economic Development. “This represents a great opportunity for them to get that important work done, and it gives contractors a chance for sustained employment on these projects.”

(Terry Davis is a Hutchinson Leader staff writer. E-mail him at davis@hutchinsonleader.com.)