The Metropolitan Council received a $40 million loan from the Minnesota Clean Water Revolving Fund to finance multiple wastewater treatment plant and interceptor sewer system capital improvement projects in 2017.
The Clean Water Revolving Fund is administered by the Minnesota Public Facilities Authority (PFA). The PFA provides financing and technical assistance to help communities build public infrastructure that protects public health and the environment and promotes economic growth.
The $40 million loan to the Metropolitan Council comes with a below-market interest rate of 1.132%. This is estimated to save $7.2 million in interest over the loan’s 20-year term.
The Clean Water Revolving Fund is supported by federal capitalization grants from the U.S. Environmental Protection Agency and state matching funds. These funds, together with PFA revenue bond proceeds, are used to make low-interest loans to cities throughout the state for wastewater and stormwater infrastructure projects. Loan repayments revolve back to make new loans, providing a permanent source of low-interest capital to help cities finance clean-water infrastructure projects.
Since its start in 1990, Minnesota’s Clean Water Revolving Fund has awarded more than 530 loans for $2.9 billion, providing more than $667 million in interest savings to local governments and their taxpayers.