Legislation would allocate $167M in grant, loan programs

A bill allocating $167 million for grant loan projects to help cities pay for wastewater and drinking water infrastructure projects was unveiled this week in the state Legislature. 

The bill, spearheaded by chief authors Sen. Gary Dahms, R-Redwood Falls, and Rep. Dean Urdahl, R-Grove City, allocates state bonding for three grant and loan programs administered by the Public Facilities Authority.

Gov. Mark Dayton has also shown support for the plan by including it in his bonding proposal.

The unveiling of the funding proposal comes as the city of Albert Lea looks for $1.35 million to connect water and sewer lines to the Stables area.

Wastewater funding was secured last year, but funding to connect drinking water lines was not obtained. District 27A Rep. Peggy Bennett, R-Albert Lea, said she feels confident the drinking water component will be funded this year.

“We’re finally far enough up the list where last year we were grant eligible for funding from the sewer side,” said Albert Lea City Engineer Steven Jahnke. “We were also grant eligible for the water side last year.”

“Without this request that the governor is asking for — the $167 million — we need that money to move forward with that project or else we won’t be moving forward.”

Jahnke said the city is “optimistic, but not confident,” that the project will be funded in this year’s legislative session.

The permit for the city’s wastewater treatment plant expired in 2014, and the city issued a request for a wastewater discharge permit in November of that year. The city is still waiting for a new permit and bracing for the potential of a phosphorous limit at the facility, which would result in millions of dollars of needed upgrades. 

According to a Coalition of Greater Minnesota Cities press release, “the proposal has broad bipartisan support, with a wide mix of legislators from both parties and from every corner of the state signed on as co-authors of the legislation.”

Bennett said she supports allotting significant funding to the Public Facilities Authority, adding the $167 million would likely have to be either increased or decreased based on the budget forecast.

Minnesota lawmakers announced Wednesday the state has a $329 million surplus to work with this year.

The coalition, consisting of 96 cities outside the Metro area, reportedly determined securing funding for the Public Facilities Authority’s grant and loan programs is its top bonding bill priority this session.

“Cities have no choice but to upgrade their water facilities and fix broken sewer pipes,” Smiglewski said in the release. “Unless they get financial help from the state, these costs all fall on local residents and businesses. When citizens are hit with water bills that have doubled or tripled, it really puts a strain on the whole community.”

According to the release, the number of cities and sanitary sewer districts planning to rebuild or upgrade their drinking water or wastewater infrastructure has jumped in recent years has jumped due to the need to replace aging infrastructure and comply with new, stricter water-quality regulations.