HF217

Purpose

• To fund upgrades and improvements at the Burnsville Water Treatment Plant by providing a state financial mechanism (bond financing) to support modernization and reliability of the city’s water infrastructure.

Main Provisions

• Subdivision 1 — Appropriation:
  • Appropriates 8,550,000 from the bond proceeds fund.
  • This appropriation is for a grant from the Public Facilities Authority to the city of Burnsville.
  • The grant funds construction and equipment upgrades necessary to renovate the water treatment plant, including electrical component replacement, water line upgrades, and improvements to the surface water treatment process.
• Subdivision 2 — Bond Sale:
  • Requires the commissioner of management and budget to sell and issue state bonds up to 8,550,000 to cover the appropriation.
  • Bonds are to be issued under the standard state framework (Minnesota Statutes sections 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4 to 7).

Funding and Financing Details

• Financing will come from the bond proceeds fund via state-issued bonds.
• The Public Facilities Authority administers the grant to Burnsville for the specified water system improvements.
• The terms and process for issuing bonds follow existing Minnesota law.

Beneficiary and Use of Funds

• Beneficiary: City of Burnsville.
• Use: Upgrading and renovating the water treatment plant to replace/upgrade electrical components, water lines, and the surface water treatment process.

Legislative Context and Implications

• Creates a targeted capital investment funding for a local water infrastructure project.
• Involves debt financing (bond issuance) rather than an immediate tax or fee change.
• Ties the funding to standard state bond statutes and constitutional provisions governing bond issuance.

Significant Changes to Existing Law

• Authorizes a new targeted bond-financed appropriation specifically for Burnsville’s water treatment plant upgrades.
• Requires bond issuance up to 8,550,000 under existing state debt and appropriation statutes.

Relevant Terms - 8,550,000 - bond proceeds fund - Public Facilities Authority - grant to the city of Burnsville - Burnsville Water Treatment Plant - electrical component replacement - water line upgrades - surface water treatment process - state bonds - bond sale - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI sections 4 to 7