A low-interest loan of more than $1 million has been awarded to the City of Taylors Falls to pay for a new well and well house. The construction is underway, with completion anticipated by spring 2008.

Taylors Falls is a city with a population of 1,058 in Chisago County.

Taylors Falls Mayor Michael Buchite said the new well will serve as an alternative and back-up for the city's existing well, as well as prevent a shortage of clean drinking water when the city's water tower is removed from service for maintenance. As a result, the city's residents will enjoy a more reliable source of clean drinking water.

Financing is from the Minnesota Public Facilities Authority (PFA), an independent infrastructure financing authority. The PFA joined with Minnesota Department of Health Commissioner Dianne Mandernach in announcing this loan.

"One of the greatest historical accomplishments of public health in Minnesota, and in most of the United States, is that we can more or less take the safety of our drinking water for granted, every time we turn on the tap," said Commissioner Mandernach. "But we need to maintain the critical infrastructure that makes it possible to provide safe drinking water. The loans provided through the revolving fund are an important tool for making that happen."

Taylors Falls-area ratepayers can expect to receive savings of more than $136,148 on debt service costs, compared to borrowing at market rates. The interest rate for the PFA loan is 1.15 percent for a 20-year term.

"This project will improve the water quality for residents of Taylors Falls , as well as lower costs," said PFA Chair Dan McElroy . "The financing will provide substantial savings to local ratepayers over the cost of borrowing at market rates."

The PFA, created by the Legislature in 1987, has funded more than $2 billion in infrastructure projects. The PFA operates three revolving loan funds for infrastructure projects, including the Drinking Water Revolving Fund, Water Pollution Control Revolving Fund and Transportation Revolving Loan Fund.