The city of McIntosh, Minn., in eastern Polk County, is getting much needed help to pay off a new water system that will guard against arsenic contamination.
The Minnesota Department of Employment & Economic Development announced Wednesday that McIntosh has been awarded a low-interest loan totaling more than $862,000 to fund the new drinking-water infrastructure, including two wells, a well house and water main connecting to the city's distribution system.
Construction already is under way in the city of 617 people. It is expected to be completed in March.
Teresa Syverson, McIntosh clerk-treasurer, said the new system will enable the city to meet federal and state drinking-water standards for arsenic.
The interest rate for the 20-year loan is 1.3 percent. McIntosh-area water users can expect to save more than $284,000 on debt service costs compared with borrowing at current market rates.
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The Minnesota Public Facilities Authority, an independent infrastructure financing source, is financing the McIntosh project.
The PFA, created in 1987 by the state Legislature, has funded more than $2 billion in infrastructure projects. The authority operates three revolving loan funds.
Minnesota Health Commissioner Dr. Sanne Magnan lauded the PFA for making the loan to McIntosh, saying that providing safe drinking water is one of the most important duties in public health.
"Safe water doesn't happen by accident; it requires a strong infrastructure and constant vigilance," Magnan said.
