NEWS RELEASE

United States Department of Agriculture • Rural Development

1221 College Park Drive, Suite 200, Dover, DE  19904

Phone: (302) 857-3580 • Fax: (302) 857-3640 • TDD: (302) 857-3585 • Web: http://www.rurdev.usda.gov

 Kathy Beisner (302) 857-3580 or 270-5767

Princess Anne, MD April 29, 2005 – One week after the official date of Earth Day, USDA officials traveled to the Somerset County Office Complex to announce $6,025,900 in federal funding to help improve the quality of life and increase economic opportunity in the Princess Anne area. The funding was provided to the Somerset County Sanitary District to expand the central water and wastewater system.

"Although Earth Day was officially celebrated one week ago, USDA Rural Development works every day to renew our commitment to the land by providing funding that will help the environment and the future of our rural communities," said Marlene Elliott, USDA Rural Development State Director. "For small rural towns no problem can be more complicated and costly than to provide the infrastructure needed to have access to an adequate supply of safe drinking water for the residents and for fire protection. It is what we are called to do at Rural Development -- to work closely with rural communities to help them overcome their challenges and to give them a means to improve the quality of life for their rural residents."

USDA Rural Development is providing 100% of the financing needed for the expansion of the central water and wastewater system in the form of a low interest loan in the amount of $3.5 million at 4.25% interest for 40 years and a grant in the amount of $2.5 million. The bulk of the funding will be used to improve the water system in the Princess Anne Subdistrict and is the result of a study that was conducted last year by the Sanitary District to evaluate water and sewer needs to meet future development and growth in the area. Funding for the study was also provided by USDA Rural Development in the form of a $15,000 grant. The current funding announced today to the Sanitary District will help enlarge two wells that will provide for an adequate supply of water for residents and improved fire fighting ability during the peak summer usage months and to expand the central wastewater system to an area that will be used for commercial use in an effort to attract businesses to the area.

"The Sanitary District deeply appreciates the efforts of USDA Rural Development in obtaining funding for a much needed addition to the Princess Anne Water Supply," said Larry Tyler, Chairman Somerset County Sanitary District. "Rural Development’s efforts in obtaining grant funds to supplement the long term loan will insure that the Princess Anne Users will not be overburdened and their understanding of the issues has helped to guarantee that this project will be accomplished in a timely manner."

Rural Development's mission is to deliver programs in a way that will support increasing economic opportunity and improve the quality of life of rural residents. Rural Development provides equity and technical assistance to finance and foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at the State Office by calling (302) 857-3580, TTY users can call (302) 857-3585 or by visiting USDA's web site at http://www.rurdev.usda.gov.

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