Pablo/Lake County Water and Sewer District to receive stimulus funds for water system improvements

PABLO — The Montana Department of Environmental Quality (DEQ) has chosen the Pablo/Lake County Water & Sewer District for low interest loans and funding from the American Recovery and Reinvestment Act of 2009 (ARRA). The funds will be used to replace old and undersized water and mains within the district. The new lines will reduce leakage, increase fire flows, and improve the reliability of the distribution system.

Pablo Water & Sewer District officials and their engineer, TD & H Engineering, have worked with the Department of Natural Resources (DNRC) and the Department of Environmental Quality to pull together funding for the project. The water system improvements will be funded with $333,847 in District funds and $953,000 from the Drinking Water State Revolving Fund (DWSRF). The DWSRF loan includes $750,000 of ARRA funds with $416,300 in principal forgiveness and $333,700 at 0.75 percent. The remainder of the loan will be at 3.75 percent. The loan period for the state revolving funds is 20 years. Project construction started in September, 2009 and is expected to be complete by June 2010.

Through the State Revolving Fund programs, the DEQ and the DNRC work together to loan money to public entities across the state, helping communities and organizations undertake a variety of water quality improvement projects. The DEQ oversees implementation of each project, while the DNRC administers the loan. The agencies award about $20 million to $40 million each year. The loan programs are supported in part by annual grants from the U.S. Environmental Protection Agency.

For more information about the State Revolving Fund or ARRA funds being distributed by the DEQ please visit the department website at www.deq.mt.gov.