HF884

Purpose

To fund infrastructure improvements in the city of Alpha by providing a state grant financed with bonds. The project covers wastewater and water systems, plus streets and related infrastructure around the project site.

Main Provisions

• Subdivision 1. Appropriation

  • Amount: 6,744,000 dollars is appropriated from the bond proceeds fund.
  • Recipient and purpose: The Public Facilities Authority (PFA) will use the funds to grant the city of Alpha to design, construct, and equip improvements to municipal infrastructure. This includes:
  • wastewater treatment facility and wastewater collection system
  • water treatment facilities and water distribution system
  • reconstruction of streets, sidewalks, curb and gutter associated with the project

• Subdivision 2. Bond sale

  • Financing: The money appropriated will be raised by selling state bonds up to 6,744,000 dollars.
  • Process and authority: Bonds will be issued by the Commissioner of Management and Budget under the terms of Minnesota Statutes sections 16A.631 to 16A.675 and the Minnesota Constitution Article XI sections 4 to 7.

Effect and Significance

• This bill creates a new capital investment financing mechanism specifically for Alpha’s infrastructure project.
• It directs bond-financed funding to the city via a grant administered by the Public Facilities Authority.
• It requires state bond issuance to support the project, rather than using annual operating funds.

Implementation and Oversight

• Administration: The Public Facilities Authority administers the grant to the city of Alpha.
• Financing: The Commissioner of Management and Budget is responsible for issuing the bonds, following the referenced statutes and constitutional provisions.

Estimated Financial Impact

• Total bonds authorized: up to 6,744,000 dollars.
• Source of funds: bond proceeds fund.
• Intended use: design, construction, and equipment for wastewater, water, and street-related improvements in Alpha.

Relevant changes to law - Establishes a new appropriation from the bond proceeds fund for Alpha and directs the issuance of state bonds to finance the grant.

Relevant Terms - Public Facilities Authority - grant - city of Alpha - wastewater treatment facility - wastewater collection system - water treatment facilities - water distribution system - streets, sidewalks, curb and gutter - bond proceeds fund - bond sale / state bonds - Commissioner of Management and Budget - Minnesota Statutes sections 16A.631 to 16A.675 - Minnesota Constitution Article XI sections 4 to 7 - capital investment - infrastructure improvements