Purpose

To provide funding for upgrading Stephen’s water and sewer infrastructure and related street work. The bill would appropriate money from the bond proceeds fund to support a grant to the city of Stephen for designing, constructing, and equipping replacements of aging and failing municipal infrastructure, including water and sewer systems and street reconstruction.

Main Provisions

• Appropriation: An amount of 8,000,000 is appropriated from the bond proceeds fund to the Public Facilities Authority. This money is to be used as a grant to the city of Stephen to design, construct, and equip replacements of aging and failing municipal infrastructure. The work covered includes improvements to and replacement of:
  • Water distribution system
  • Sanitary sewer system
  • Storm sewer system
  • City streets (reconstruction)
• Bond sale: The commissioner of management and budget shall sell and issue bonds up to 8,000,000 to finance the appropriation. The bonds are issued according to the standard process and terms set forth in Minnesota law (Minnesota Statutes sections 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4 to 7).

Significance and What It Does

• Establishes a capital investment action focused on municipal infrastructure in Stephen.
• Uses the bond proceeds fund to finance a grant rather than a direct appropriation from the general fund.
• Creates a formal mechanism to fund, design, and implement critical upgrades to water, sewer, and drainage systems, plus street reconstruction.
• The funding and financing are aligned with existing Minnesota bond laws and constitutional provisions.

Potential Impacts

• Improves reliability and safety of water distribution, sanitary and storm sewer services, and transportation infrastructure in Stephen.
• Increases state-backed financial support for local infrastructure projects.
• Creates long-term debt obligations through state bonds to support the project.

Changes to Existing Law

• This bill adds a new appropriation and bond authorization specific to Stephen’s water, sewer, and street projects, using the Public Facilities Authority as the grant recipient and following established bond issuance statutes.

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Relevant Terms - bond proceeds fund - Public Facilities Authority - grant - city of Stephen - water distribution system - sanitary sewer system - storm sewer system - street reconstruction - design, construct, and equip - aging and failing municipal infrastructure - bond sale / sale and issuance of bonds - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI, sections 4 to 7 - capital investment appropriation