Gov. interest reduction saves Havre $2 million

Action by the Montana governor will save the city of Havre nearly $2 million in a project to upgrade its wastewater treatment plant.

A press release from the governor’s office issued today says Havre will save $1,918,464 in interest on a $4.8 million loan from the State Revolving Fund Loan Program due to the governor reducing interest on loans from the fund.

Gov. Steve Bullock announced earlier this year he was reducing the rates in the revolving fund as well as asking the Legislature in its next session to approve $45 million in grants for communities in eastern Montana struggling with rapid population growth related to energy development in the Bakken Formation.

Bullock also instituted short-term loans construction loans for water and wastewater loans, and today reduced the long-term interest rates from the revolving fund from 3 percent to 2.5 percent, and reduced the required reserves from two payments to one payment. He also reduced the debt service coverage required to assure payments from 125 percent of the payments to 110 percent.

Tim Solomon said Monday morning that he is looking into what this means to Havre. He did not want to comment on the matter until he knew more about the issue.