Purpose

The bill provides funding to upgrade Floodwood’s water and sewer systems. It authorizes a grant to the city of Floodwood to design and build improvements along Floodwood Road (County Road 832) to replace and expand water and sewer mains and rebuild the street, with the goal of supporting local business and residential growth.

Main Provisions

• Subdivision 1 – Appropriation: $1,500,000 is appropriated from the bond proceeds fund to the Public Facilities Authority. The money will be given as a grant to the city of Floodwood to design and construct capital improvements to the city’s water and sewer infrastructure along Floodwood Road. The project includes replacement and expansion of water and sewer mains and related street reconstruction to support business and residential development.
• Subdivision 2 – Bond Sale: To fund the appropriation, the commissioner of management and budget shall sell and issue state bonds up to $1,500,000. The sale will follow the terms and effects defined by Minnesota law (Minnesota Statutes sections 16A.631 to 16A.675 and the Minnesota Constitution article XI sections 4 to 7).

Financing and Bonding Details

• Source of funds: Bond proceeds fund.
• Recipient and purpose: Public Facilities Authority grants to the city of Floodwood for water and sewer infrastructure improvements along Floodwood Road (County Road 832).
• Project scope: Design and construction, including replacement and expansion of water and sewer mains and associated street reconstruction.
• Financial mechanism: Issuance of state bonds up to $1,500,000 to cover the appropriation.

Significant Changes to Existing Law

• Creates a new capital investment appropriation specifically for Floodwood’s water and sewer infrastructure upgrades.
• Authorizes the sale of state bonds up to $1,500,000 to fund this project.
• Directs that the bond sale and related allocation follow existing statutory and constitutional procedures (Minnesota Statutes 16A.631–16A.675 and Minnesota Constitution article XI).

Implementation and Oversight (Summary)

• Administration: The funds are to be provided as a grant through the Public Facilities Authority.
• Compliance: Bond issuance and use must conform to the referenced state statutes and constitutional provisions.

Relevant Terms - Floodwood - water and sewer infrastructure - County Road 832 Floodwood Road - Public Facilities Authority - grant - design and construct - capital improvements - water mains - sewer mains - street reconstruction - business development - residential development - bond proceeds fund - bond sale / bonds - Minnesota Statutes 16A.631 to 16A.675 - Minnesota Constitution article XI