SF5076

Purpose

• Provide funding to Saint Paul Regional Water Services for improvements to the Fridley pump station and to replace lead drinking water service lines. The bill also authorizes the sale and issuance of state bonds to finance these projects.

Main Provisions

• Subdivision 1 – Appropriation: Allocates 3,500,000 from the bond proceeds fund as a grant to Saint Paul Regional Water Services through the Public Facilities Authority. The money is for design, construction, and equipment to rehabilitate and replace aging infrastructure at the Fridley pump station site. Planned work includes major projects to repair or replace electrical, mechanical, and piping systems; replacement of standpipe and sluice gates; sump pump system upgrades; and upgrades to water pumps and motors.
• Subdivision 2 – Bond Sale: Requires the Commissioner of Management and Budget to sell and issue bonds up to 3,500,000 to fund the appropriation, in the manner prescribed by Minnesota law and the state constitution.

Financing and Financing Authority

• The funding is drawn from the bond proceeds fund and will be issued as state bonds to cover the approved appropriation. The Public Facilities Authority administers the grant to the water utility.

Affected Entities and Scope

• Saint Paul Regional Water Services (the recipient of the grant)
• Fridley pump station (the project site)
• Public Facilities Authority (the intermediary administering the grant)

Legal Authority and Context

• Bonds and funding are to be issued under Minnesota Statutes sections 16A.631 to 16A.675 and the Minnesota Constitution article XI sections 4 to 7.

Significant Changes to Existing Law

• Introduces a new capital investment appropriation funded by state bond proceeds for specific water infrastructure improvements and lead service line replacement, facilitated through a grant to a local utility and financed by state bonds.

Relevant Terms - Saint Paul Regional Water Services - Fridley pump station - lead drinking water service lines - appropriation - grant - Public Facilities Authority - bond proceeds fund - bond sale / sale of bonds - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution Article XI (sections 4-7) - design, construction, and equip rehabilitation - electrical systems - mechanical systems - piping systems - standpipe - sluice gates - sump pump - water pump - motor upgrades