HELENA, Mont. – Governor Steve Bullock today announced that the town of Roundup has been approved for a $377,684 State Revolving Fund (SRF) loan to modernize drinking water infrastructure. Thanks to the State of Montana’s strong credit rating and Governor Bullock’s decision to reduce SRF interest rates from 3% to 2.5%, Roundup ratepayers will save $127,241 over the life of the loan.
“Through strong fiscal management and a bit of common sense, we’re ensuring ratepayers in Roundup can keep more money in their pockets while making critical infrastructure upgrades. These upgrades will help to support important economic development in the community,” Bullock said of the loan. “We’ll continue to work with local communities to find responsible ways to make critical infrastructure improvements, and save money for Main Street Montana businesses and customers.”
Using the SRF funds, Roundup will replace an estimated 6,000 feet of deteriorating cast-iron water mains that are the source of elevated iron levels in drinking water; additional improvements will include increasing the size of the town’s transmission main from its water storage tank into the distribution system.
Roundup will receive a loan for $137,684.00 for 20 years at 2.5 percent interest, and a second SRF loan for $120,000 at 2.5 percent for 20 years. The town has also qualified for a third loan worth $120,000 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.
COP Construction of Billings has been awarded the bid for the project, which is expected to be completed in December of this year.
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/.