ST. PAUL - State Rep. Dean Urdahl, R-Grove City, announced Monday the city of Litchfield has gained approval for a financial package of nearly $15 million to use in water-related projects.
The financing package from the Minnesota Public Facilities Authority includes a $7.1 million Clean Water Revolving Fund loan for 20 years at 2.652-percent interest, and a $6 million Wastewater Infrastructure Fund interest-free deferred loan. There also is $1.8 million in principal forgiveness which will not have to be repaid as part of the federal American Recovery and Reinvestment Act. Urdahl successfully authored a bill in the House to help Litchfield obtain the $6 million in WIF funding.
“This funding will help Litchfield by creating jobs, promoting economic recovery and improving water quality,” said Urdahl, a member of the Capital Investment Committee that authorizes funding for these types of programs. “The most noticeable improvement will be an upgraded wastewater system which will boost the local economy by allowing First District Association to dramatically increase production.”
The MPFA estimates favorable financing conditions will save local taxpayers more than $10.7 million in interest costs when compared with current market rates available for general obligation bonding.
Dean Urdahl represents District 18B in the Minnesota House of Representatives. The district includes most of Meeker County and a portion of Wright County. This is Urdahl’s fourth term in the Legislature after being elected in 2002, 2004, 2006 and 2008.