The state's Public Facilities Authority will provide $12.3 million in financing to seven Minnesota cities to pay for drinking water and waste water improvements.

The money goes to:

• $7.1 million to Minneapolis to complete an upgrade of an ultra-filtration plant. The PFA funding consists of a $7.1 million loan at 1 percent interest over 12 years. The loan will save the city $734,790, compared with market-rate financing.
• $2.8 million to South St. Paul to pay for constructing components of a drinking-water treatment system, including two reservoirs. The PFA funding consists of a $2.8 million loan at 1.7 percent interest over 20 years. The loan will save the city $465,200, compared with market-rate financing.
• $693,965 to St. Bonifacius to pay for replacing a well and other components of the drinking-water infrastructure. The PFA funding consists of a $693,965 loan at 1.7 percent interest over 20 years. The loan will save the city $114,948, compared with market-rate financing.
• $600,000 to Lowry, pop. 280, for replacing the municipal wastewater collection system and building a wastewater treatment system. Along with the $600,000 grant from the PFA, Lowry also received a grant of $580,000 from the Small Cities Development Program and a grant and loan of $2 million from the U.S. Department of Agriculture-Rural Development.
• $418,644 to New Hope to pay for replacing a water main along Winnetka Avenue. The PFA funding consists of a $418,644 loan at 1.7 percent interest over 20 years.The loan will save the city $67,270, compared with market-rate financing.
• $373,004 to East Bethel to construct a new well and modify a well house, accommodating the new well. The PFA funding consists of a $74,601 loan at 1 percent interest over 20 years and $298,403 in principal forgiveness. The loan will save the city $453,871, compared with market-rate financing.
• $353,454 to Chisholm to rehabilitate the sanitary sewer collection system in northwestern Chisholm. The package consists of a $353,454 loan at 1.37 percent interest over 15 years. The loan will save the city $47,423, compared with market-rate financing.