News Column

Glendive to Save $6.7 Million in Interest on Wastewater Treatment Plant Upgrade

July 2, 2014



HELENA, Mont., July 2 -- Gov. Steve Bullock, D-Mont., issued the following news release:

As part of his Main Street Montana Project, Governor Steve Bullock today announced the City of Glendive will save $6.7 million in interest payments on a loan to improve and expand their wastewater treatment plant. The savings come as a result of a reduction in interest rates for infrastructure projects that Bullock announced last month.

"Ensuring clean water and a reliable wastewater system are crucial parts of building a strong economy," said Governor Steve Bullock. "Communities throughout Montana, especially those in Eastern Montana, can leverage our state's sterling bond rating to make important improvements to their infrastructure, at less cost."

Last month, Bullock announced changes to the State Revolving Fund loan program (http://governor.mt.gov/Portals/16/docs/2014PressReleases/061314 SRF Changes Release.pdf) to make it easier and more cost effective for communities to borrow money to make necessary infrastructure improvements. Through these changes, Bullock reduced the interest rate paid on these loans from 3 percent, to 2.5 percent, as well as easing rules on required reserves and debt service coverage.

Bullock's Main Street Montana Project identified the importance of ensuring Montana businesses and communities have an efficient and reliable infrastructure as a key goal.

Construction of the new facility is expected to begin later this month. Sletten Construction LLC of Great Falls, Mont., was awarded the bid. The new wastewater treatment facility is scheduled to be operational in June of 2016.

The city will borrow $17,116,000 from the State Revolving Fund (SRF) for 30 years, at an interest rate of 2.5 percent. Prior to the changes Bullock made, the city would have paid an interest rate of 3 percent. The city has also qualified for a $100,000 Renewable Resource Grant. Both the grant and loan were provided by the Montana Department of Natural Resources and Conservation (DNRC).

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/.

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