State Saves Taxpayers $14.8 Million and Invests in Local Infrastructure

Statement

Governor Bullock today announced investments in critical infrastructure for local communities across the state while saving taxpayers $14.8 million.

Actions taken by the Board of Examiners will enable 12 Montana cities and towns to move forward with critical drinking water and wastewater infrastructure projects this year.

"These funds will move critical infrastructure projects forward," Bullock said. "The board's actions will help to provide hundreds of good-paying jobs while providing funding sources to Montana's communities at the lowest interest rates possible."

The $5.5 million in bonds approved by the board completes a $40.5 million state financing package. Those state funds leverage an additional $54.1 million in matching funds for a total of $95 million for the infrastructure projects.

Because of Governor Bullock's continued responsible fiscal management the state receives $14.8 mil in savings:

Montana ratepayers will benefit from a reduced interest rate of 2.5 percent, and these 12 communities will save $13.6 million in payments on their SRF loans.

Interest rates on the GARVEE bonds for MDT decreased and will result in $1.2 million in savings to the state. These savings mark the successful completion of the most recent refinancing project. The State of Montana has saved over $7 million as a result of these partnerships between the Governor's Office of Budget and Program Planning, Montana Department of Administration and the Montana Department of Transportation.
The projects approved include drinking water projects in Big Sandy, Billings Heights, Dry Prairie Rural Water system, Great Falls, Laurel, and the South Winds Water District in Cascade County. Wastewater projects were approved for Columbus, Cut Bank, Dawson County, East Clark Street Water and Sewer District, Miles City, and Sidney.

The projects will go out to bid beginning in May, with construction scheduled to begin this summer. Some of the larger projects will take a year or more to complete.

Source