HF461

Purpose

• To fund the expansion of the wastewater treatment facility capacity in the city of New Germany, supporting upgrades to design, engineering, construction, and equipment for a capital-improvement project.

Key provisions

• Appropriation of funds: An amount of 8,000,000 is appropriated from the bond proceeds fund to the Public Facilities Authority (PFA) as a grant to the City of New Germany. The grant is for designing, engineering, constructing, and equipping improvements and betterments of a capital nature to expand the city’s wastewater treatment facility capacity.
• Financing authorization: The commissioner of management and budget is required to sell and issue state bonds up to 8,000,000 to provide the money appropriated, under the terms and effects described in Minnesota statutes and the state constitution.

Funding and financing details

• Source of funds: Bond proceeds fund.
• Recipient and use: Public Facilities Authority grants funds to the City of New Germany for capital improvements to wastewater capacity.
• Bond terms: Issuance of state bonds up to 8,000,000, following Minnesota Statutes sections 16A.631 to 16A.675 and Constitution Article XI sections 4 to 7.

Administration and oversight

• Responsible entities: Public Facilities Authority administers the grant; the commissioner of management and budget handles bond sales.
• Legal framework: Financing and procedures must comply with specified statutes and constitutional provisions.

Significance

• Creates a dedicated funding stream and financing mechanism to expand wastewater treatment capacity in New Germany, through a grant pathway supported by state bonds.

Relevant Terms - appropriation - bond proceeds fund - Public Facilities Authority (PFA) - grant - New Germany - wastewater treatment facility capacity - design, engineer, construct, equip - capital nature improvements - bond sale / bonds - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI (sections 4 to 7)