HF5109

Purpose

This bill provides capital investment funding to the city of McKinley by authorizing a grant for the replacement of sewer and water infrastructure and related street work. The funding comes from state bond proceeds, and the project is to be administered through the Public Facilities Authority.

Main Provisions

• Subdivision 1 — Appropriation:

  • An amount of 4,500,000 is appropriated from the bond proceeds fund to the Public Facilities Authority.
  • The funds are for a grant to the city of McKinley to design, construct, and equip the replacement of sewer and water infrastructure, and to perform associated street replacement and repairs.

• Subdivision 2 — Bond sale:

  • The commissioner of management and budget must sell and issue state bonds up to 4,500,000 to finance the appropriation.
  • Bond sales are to be done in the manner and with effects prescribed by Minnesota Statutes sections 16A.631 to 16A.675 and by Minnesota Constitution Article XI sections 4 to 7.

Financing and Administrative Details

• Source of funds: bond proceeds fund.
• Administration: grants are provided through the Public Facilities Authority to the city of McKinley.
• Project scope: design, construction, and equipping of sewer and water infrastructure replacement, plus street replacement and repairs.

Significant Changes to Existing Law

• Establishes a new capital investment project for the city of McKinley funded by state bonds.
• Creates a formal grant program channelled through the Public Facilities Authority for this city project.
• Ties financing to existing state bond statutes and constitutional provisions governing bond issuance.

Summary of Impacts

• Local impact: upgrades to essential water and sewer systems and surrounding streets in McKinley.
• State impact: authorization to issue up to 4.5 million in bonds to fund the project.

Relevant Terms - appropriation - bond proceeds fund - Public Facilities Authority - grant - city of McKinley - sewer infrastructure - water infrastructure - street replacement and repairs - design - construct - equip - replacement - bond sale - commissioner of management and budget - bonds up to 4,500,000 - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI sections 4 to 7