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Financing questions may be <br />directed to: (Northern <br />Minnesota) Martin English, <br />612/297-1981; (Western <br />Minnesota) Milan Thoreson, <br />612/297-1982; (Central <br />Minnesota) Dennis Feist, <br />612/296-6616; (Southeastern <br />Minnesota) Jeff Freeman, <br />612/296-2838. For questions <br />regarding the Minnesota <br />Department of Health's <br />administration of the pro- <br />gram, contact the Public <br />Water Supply Unit at 612/ <br />215-0770. <br />Under the program, the federal <br />government will give seed money <br />to states to capitalize their indi- <br />vidual revolving funds. In Minne- <br />sota, these federal funds will be <br />leveraged through the sale of tax- <br />exempt bonds to generate addi- <br />tional funds that can be loaned to <br />municipalities for eligible drinking <br />water projects. The loans will be <br />made at below-market interest <br />rates, based on the size and finan- <br />cial capability of each city. <br />In addition to providing loans to <br />municipally-owned water systems, <br />the drinking water revolving fund <br />will also be able to assist privately- <br />ownedcommunity water systems, <br />such as manufactured housing <br />developments, by subsidizing the <br />interest rate they receive on loans <br />through private banks. Non-profit <br />noncommunity drinking water <br />suppliers are also eligible for this <br />type of assistance. <br />Funding <br />Congress has appropriated $1.275 <br />billion nationally in revolving fund <br />money for fiscal year 1997. Min- <br />nesotawill receive approximately <br />$42 million (3.35 percent) of this. <br />Individual states must provide 20 <br />percent in matching funds. In <br />Minnesota, the Legislature, during <br />the 1997 session, will be requested <br />to appropriate approximately $8.4 <br />million to match the federal appro- <br />priations. <br />The federal funding will be appor- <br />tioned to states in accordance with <br />their needs. A recently completed <br />survey indicated more than $1 <br />billion in needs for large- and <br />medium-size drinking water <br />systems (those serving at least <br />3,300 people) in Minnesota alone. <br />In addition, MDH has identified <br />$183 million in needs for small <br />water systems (those serving <br />3,300 or fewer people). <br />Administration and rules <br />The MDH and PFA have been <br />working to revise existing Minne- <br />sota Rules, Chapter 7380 and <br />Chapter 4720 to include rules <br />governing the revolving fund. <br />Subjects that may be included in <br />the revised rules are project <br />priorities, program requirements <br />and approval processes, interest <br />rate determinations, loan terms <br />and conditions, and repayment <br />requirements. <br />A rules advisory group consisting <br />of representatives of public <br />drinking water suppliers and <br />consulting engineers working in <br />the drinking water field was <br />previously formed by the two <br />agencies. This group has met <br />periodically since February 1995 <br />and will continue to meet until the <br />proposed rule is published in the <br />State Re ig stet sometime within <br />the next three months. <br />Interested persons or groups can <br />receive a preliminary draft of the <br />rule revision. by calling the Minne- <br />sota Department of Health at 612/ <br />215-0770. The program is ex- <br />pected to be operational by Spring <br />1997 although availability of loan <br />funds is dependent on EPA <br />requirements that have not yet <br />14 <br />