4th & 5th St Project - Drinking Water State Revolving Fund

On November 21st, 2016 the Minnesota Public Facilities Authority (PFA) approved a financing agreement to the City of Madison Lake for improvements to their drinking water system.  The PFA’s financing package consists of a $831,417.00 Drinking Water State Revolving Fund 20-year loan with an interest rate of 1.046%.  Once complete, the project will improve the water quality serving the residents and businesses in Madison Lake.

The Drinking Water SRF is supported through a combination of federal capitalization grants from the U. S. Environmental Protection Agency, state matching funds, loan repayments and bond proceeds from PFA revenue bonds.  Since 1997, Minnesota has received $339 million in federal drinking water funds. These funds have been leveraged more than 2 to 1 by the PFA to award more than 356 drinking water loans totaling over $725 million.