SF834

Purpose

• The bill would authorize the state to borrow money and provide funding to improve the Lakewood water treatment plant in Duluth. It aims to support design and construction of capital improvements at the plant and related infrastructure.

Main Provisions

• Subdivision 1 – Appropriation:
  • Appropriates 21,208,000 dollars from the bond proceeds fund to the Public Facilities Authority.
  • The Public Facilities Authority would grant this money to the city of Duluth to design and construct capital improvements at the Lakewood water treatment plant.
  • Improvements include rehabilitation of the granular infiltration system, roof repairs, and other improvements to support ongoing operations, along with improvements to water reservoirs and pump stations.
• Subdivision 2 – Bond Sale:
  • Requires the money to be provided by selling state bonds up to 21,208,000 dollars.
  • Bond issuance would follow the terms and effects set by Minnesota law (Minnesota Statutes 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4–7).

Significant Changes to Existing Law

• Creates a new state funding mechanism (a 21.208 million dollar appropriation) for Duluth for Lakewood plant improvements.
• Establishes a requirement to issue state bonds to fund the appropriation, in accordance with existing bond statutes and constitutional provisions.
• Directs the Public Facilities Authority to administer the grant to the City of Duluth for specified capital improvements.

Implementation Notes

• The project would be managed as a capital improvement project through the Public Facilities Authority, with funding provided as a grant to the City of Duluth for design and construction work on the Lakewood water treatment plant and related facilities.

Potential Impacts

• Improves reliability and capacity of Duluth’s water system through upgrades to the Lakewood plant and ancillary infrastructure (reservoirs and pump stations).
• Increases state debt (bond issuance) to fund local capital improvements.

Relevant Terms - Lakewood water treatment plant - Duluth - Public Facilities Authority - bond proceeds fund - appropriation - grant - city of Duluth - design and construct - capital improvements - granular infiltration system - roof repair - water reservoirs - pump stations - bond sale - commissioner of management and budget - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI sections 4 to 7