Five Minnesota cities receive water project money

Bird Island, Clearwater, Cosmos, Grand Rapids and Redwood Falls are receiving a total of $41.3 million from the Minnesota Public Facilities Authority for improvements to drinking water and wastewater systems.

"These five projects further the state's efforts to improve water quality in Minnesota communities," said Dan McElroy, Authority chair and commissioner of the Minnesota Department of Employment and Economic Development.

The money included $9.4 million from the American Recovery and Reinvestment Act, part of the $107 million the state has received this year under the federal stimulus act to help more than 40 Minnesota communities improve their wastewater, sanitary sewer and drinking water systems.

Bird Island is getting $1 million from the Drinking Water Revolving Fund to pay for rehabilitating the city's east side water treatment plant and for replacing a well. The package consists of a $150,632 loan at 1 percent interest over 20 years and $812,077 in principal forgiveness. The loan will save the city $857,800 compared with market-rate financing. Bird Island, which is in Renville County, has a population of 1,120.

Cosmos is getting $603,876 from the same fund to pay for looping and replacing water mains and other components of the city's drinking water distribution system. The package consists of a $243,200 loan at 1 percent interest over 20 years and $360,676 in principal forgiveness. The loan will save the city $588,581 compared with market-rate financing. The city of 525 is in Meeker County. about 22 miles west of Hutchinson.