The Metropolitan Council has received a $50 million loan from the Minnesota Clean Water Revolving Fund to finance multiple capital improvement projects at wastewater treatment plants and in the interceptor sewer system during 2022-2023.
The Clean Water Revolving Fund is administered by the Minnesota Public Facilities Authority. The authority provides financing and technical assistance to help communities build public infrastructure that protects public health and the environment and promotes economic growth. The $50 million loan to the Met Council comes with a below-market interest rate of 1.00%, which is estimated to save $3.2 million in interest over the loan’s 19-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 Public Facilities Authority 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 565 loans for $3.1 billion, providing more than $691 million in interest savings to local governments and their taxpayers.