Purpose

The bill would provide a financial package to support improvements to the Alexandria Lake Area Sanitary District’s (ALASD) regional water facility. Specifically, it would authorize an appropriation of 25,000,000 from the bond proceeds fund for a grant to ALASD to plan, design, engineer, construct, and equip Phase One improvements and upgrades to the ALASD regional water reclamation facility.

Main Provisions

• Appropriation of 25,000,000 from the bond proceeds fund to the Public Facilities Authority (PFA) for a grant to ALASD to fund Phase One improvements and upgrades to the ALASD regional water reclamation facility. This includes design, engineering, construction, and equipment.
• Bonding authorization: The commissioner of management and budget must sell and issue state bonds in an amount up to 25,000,000 to finance the appropriation, under the state’s bond laws (Minnesota Statutes sections 16A.631 to 16A.675) and in accordance with the Minnesota Constitution (article XI, sections 4 to 7).
• Administrative mechanism: The money will be provided as a grant from the bond proceeds fund through the PFA to ALASD for the described Phase One project.

Financial Implications

• Debt financing: The bill creates a new state debt obligation of up to 25,000,000 to fund the grant to ALASD.
• Use of bond proceeds fund: The source of funds for the grant is the bond proceeds fund, with bonds issued by the state to raise the money.
• Economic impact: The project aims to modernize and upgrade a regional water reclamation facility, which could affect long-term maintenance costs, water treatment capacity, and local infrastructure readiness.

Implementation and Oversight

• Eligible recipient: Alexandria Lake Area Sanitary District (ALASD) will receive the grant via the Public Facilities Authority.
• Project scope: Phase One improvements and upgrades to the ALASD regional water reclamation facility, including design, engineering, construction, and equipment.
• Compliance: Funding and bond issuance must follow applicable Minnesota statutes and constitutional provisions governing debt issuance and bond proceeds.

Impact on Existing Law

• Adds a new appropriation and related bonding authority specifically for ALASD’s regional water facility project.
• Expands the list of authorized uses for the bond proceeds fund by directing funds through the Public Facilities Authority to ALASD for capital improvements.

Stakeholders

• ALASD (Alexandria Lake Area Sanitary District)
• Public Facilities Authority (PFA)
• Minnesota Department of Management and Budget
• Minnesota bondholders/taxpayers who support debt issuance

Relevant Terms - ALASD (Alexandria Lake Area Sanitary District) - Alexandria Lake Area Sanitary District - Regional water reclamation facility - Phase One improvements - upgrades - design - engineer - construct - equip - Public Facilities Authority (PFA) - grant - bond proceeds fund - appropriation - bond sale - Minnesota Statutes 16A631 to 16A675 - Minnesota Constitution article XI sections 4 to 7