(Baltimore, Maryland) April 15, 2009 - Thanks to President Obama and the American Recovery and Reinvestment Act (ARRA), today the Maryland Board of Public Works was able to approve an interest rate reduction for drinking water and wastewater loans that will result in $8,852,253 in savings over the 20 years, or $442,613 annually, to local governments. The Board is comprised of Governor Martin O’Malley, Treasurer Nancy K. Kopp, and Comptroller Peter Franchot.
“The American Recovery and Reinvestment Act is not only putting Marylanders to work, it is furthering our efforts to restore the Chesapeake Bay and improve our drinking water,” said Governor Martin O’Malley. “The loan reductions approved today will help local governments by decreasing their costs.”
As a result of the American Recovery and Reinvestment Act, in addition to funding 95 construction projects for water and sewer, Maryland is lowering already low interest rates on loans (at 0 and 1 percent interest rates) that will result in significant savings to local governments. Today the Board of Public works approved the following reductions in interest rates:
Town of North East Water System Improvements - Cecil County
The Town of North East received a reduced interest rate on a $1,500,000 loan to fund improvements to the drinking water system. The Town will save $859,208 over the 20 year life of the loan or $42,960 annually.
City of Cumberland/Ridgedale Reservoir Replacement – Allegany County
The City of Cumberland received a reduced interest rate on a $2,200,000 loan to replace the Ridgedale Reservoir and improve the drinking water system. The City will save $1,260,172 over the 20 year life of the loan or $63,009 annually.
City of Hagerstown/Hagerstown Wastewater Treatment Plant – Washington County
The City of Hagerstown received a reduced interest rate on a two loans totaling $7,655,000 to improve the wastewater treatment plant. The City will save $4,384,825 over the 20 year life of the loan or $219,241 annually.
Town of Oxford/Oxford Arsenic Removal – Talbot County
The Town received a reduced interest rate on a loan of $940,000 to remove arsenic and improve the drinking water system. The Town will save $538,437 over the 20 year life of the loan or $26,922 annually.
Washington Suburban Sanitary Commission/Western Branch Wastewater – Prince George’s County
The Washington Suburban Sanitary Commission (WSSC) received a reduced interest rate on a loan of $6,300,000 to improve a wastewater treatment plant. The WSSC will save $1,809,612 over the 20 year life of the loan or 90,841 annually.
The Board of Public Works also approved the following grant increase that will reduce nutrient pollution into the Chesapeake Bay:
St. Michaels Region II Sewer Collection System – Talbot County
The $50,000 grant increase, in addition to previous grants totaling $1,005,000 will upgrade the sewer collection system including repairing and replacing defective sewer lines and manholes and installing low pressure sewers with grinder pumps to replace substantially deteriorated gravity sewers. The project will remove major sources of extraneous flows caused by infiltration and inflow in the wastewater collection system and replace deteriorated pipes in jeopardy of collapse.