MALTA, Mont. – Governor Steve Bullock today announced that ratepayers in the town of Malta will save $3.7 million thanks to changes he made to the State Revolving Fund (SRF) loan program in 2014. The savings come as a result of $5.3 million in SRF loans to Malta to modernize its drinking water system.
“Through strong fiscal management and a bit of common sense, we’re ensuring the hard-working residents of Malta can keep more money in their pockets,” Bullock said. “This project will ensure safe and reliable water for the community. We’ll continue to work with local communities to find responsible ways to make critical infrastructure improvements while saving money for Main Street Montana businesses and customers.”
Using the three new loans and a $100,000 Renewable Resource Grant from DNRC, Malta will upgrade more than 23,000 linear feet of water mains, replace 35 fire hydrants, and modernize transfer switches at three pumping stations, along with other improvements.
To finance the project, Malta has borrowed $5.3 million from the SRF loan program in the form of three loans: a $4,285,000 loan for 30 years at 2.5 percent; a $500,000 loan for 20 years at 2.5 percent; and a loan of $500,000 which will be forgiven if certain provisions are met.
The changes to the SRF interest rate were made in 2014 as part of Bullock’s Main Street Montana Project. He reduced long-term interest rates from three percent to 2.5 percent. In addition, he reduced the amount of financial reserves communities must hold in order to receive a loan, and reduced the debt-service coverage communities are required to have.
The Main Street Montana Project is building and implementing a business plan for the state of Montana that helps businesses grow, supports job creation, and increases wages. One of the goals of the project is to ensure Montana businesses and communities have efficient and reliable infrastructure.
Helena Sand and Gravel Co., of Helena, has been awarded the bid for the project, which is expected to be completed in spring of 2017.
Bullock noted the State Revolving Fund loan program administered by DNRC and the Montana Department of Environmental Quality (DEQ) enables Montana communities to upgrade or expand critical drinking- or wastewater treatment facilities at the lowest possible cost.
For more information on the State Revolving Fund program, contact Anna Miller of DNRC at (406) 444-6689, or visit the Montana DNRC Web site at http://dnrc.mt.gov/.