Local projects not included in Walz bonding proposal

Published 5:37 am Friday, January 19, 2024

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No local projects were included in Minnesota Gov. Tim Walz’s $982 million infrastructure plan released this week.

The package, known as a bonding bill, will be a centerpiece of the governor’s agenda for the 2024 legislative session, which convenes Feb. 12. Bonding bills are typically a main focus of sessions in even-numbered years because those are when the two-year state budget is set.

Walz said his plan would protect drinking water, improve roads and bridges, protect public safety and support safe housing. His proposal follows a record $2.6 billion bonding package that lawmakers passed in May. But it stays within the $830 million that budget officials estimate the state can now safely borrow via general obligation bonds while preserving its triple-A credit rating, and the limited amount of cash available for new spending. The bonds are expected to have an interest rate of 4.3%.

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Albert Lea leaders have requested $40 million in state bonding funds for a new wastewater treatment plant, part of an overall $80 million project to upgrade the plant, which was built in 1981. In addition to the plant having aging infrastructure, the city is facing new regulations from the Minnesota Pollution Control Agency for phosphorus removal.

City leaders have said without state funding, sewer rates will triple for residents from about $40 a month to $120 a month on average.

The city has also requested $1.8 million for redevelopment of the Blazing Star Landing, the site of the former Farmland Foods, which burned down in 2001, leaving a history of contamination, including arsenic, petroleum and heavy chlorides, among other contaminants.

District 23A Rep. Peggy Bennett, R-Albert Lea, said she was not too worried to not see the local projects in the governor’s proposal, as the House and Senate have the most say in the bonding bills and will also put forward their own proposals.

She said she has been in talks with U.S. Rep. Brad Finstad of Minnesota to see if it is possible to get a federal match for the project.

“For me the wastewater treatment plant is our No. 1 priority. …” Bennett said. “That’s just so important. If we don’t get funding for that, it’s just huge. Our sewer and water prices will go up hugely.”

Bennett said she is also working with District 23 Sen. Gene Dornink, R-Brownsdale, to come up with a plan to use part of the state’s surplus from the year to fund many of the wastewater treatment plants across the state.

“I think it’s a worthy way to spend part of the surplus,” she said.