CGMC city leaders to Legislature: State must take action on clean water funding crisis
High infrastructure costs could cripple rural communities unless state steps in
ST. PAUL—With cities across the state facing billions of dollars in costs to upgrade wastewater infrastructure to replace aging equipment and comply with new regulations, city leaders held a press conference today to call on the state to play a larger role in tackling Minnesota’s clean water funding crisis.
“I don’t use the word ‘crisis’ lightly, but that is exactly what towns across Minnesota are facing right now,” said Lakefield City Clerk Kelly Rasche. “Extremely high water infrastructure costs will cripple our communities unless the state ups its game and provides more funding.”
Rasche and other city leaders with the Coalition of Greater Minnesota Cities (CGMC) joined together at the press conference to ask the Legislature to support two bills that aim to address the massive expenses being piled on cities to repair or replace their water treatment facilities.
The first bill, SF 2668/HF 3122, authored by Sen. Gary Dahms (R-Redwood Falls) and Rep. Dean Urdahl (R-Grove City), allocates $167 million in state bonding for three key grant and loan programs administered by the Public Facilities Authority (PFA).
However, city officials say that caps and limitations on the PFA funding programs mean that they are no longer sufficient to meet the needs of communities across the state. Moreover, the growing need equates to more cities vying for the limited pool of state dollars. More than 300 cities are currently planning for upcoming water infrastructure projects, while the Minnesota Pollution Control Agency estimates it will cost $5 billion statewide over the next 20 years to pay for wastewater infrastructure alone.
That is why the CGMC is also spearheading efforts on a second bill, SF 3075/HF 3332, authored by Sen. Torrey Westrom (R-Elbow Lake) and Rep. Urdahl, that would provide supplemental grant funding to increase the state’s share of the costs for wastewater infrastructure.
“The current bonding proposal for $167 million is a good start, but with hundreds of cities seeking funding, it’s not going to go very far,” said Glencoe City Administrator Mark Larson. “Clean water is a state and local responsibility, but right now too much of the burden is falling on city residents and businesses.”
The city of Glencoe is facing $22.3 million in costs to replace portions of its facility that are more than 50 years old, adhere to new pollution discharge limits, build a new lift station and other upgrades. Under the current grant programs, the city only qualifies for approximately $5.5 million in state funding, which means the city and its ratepayers will be on the hook for the rest of the project costs unless the state steps up with more money.
Lakefield, a small city with a population of 1,691, is also bracing for potentially massive rate increases to pay for a $22 million upgrade to its wastewater system in order to comply with new permit requirements. According to Rasche, the city’s average residential water and sewer rates would have to nearly double to $190 a month to cover this cost without financial assistance from the state.
“Our rates are already higher than most other cities,” Rasche said. “The potential increases are so high that we are concerned people won’t want to live in our town. How do they expect our small cities to survive?”
While cities across the state have water infrastructure needs, those in the metro area are able to keep rates down because of the lower cost of serving a highly concentrated population. This is not an option for most Greater Minnesota communities.
For example, Albert Lea needs to undergo a project that is estimated to cost $72.5 million. Without state help, the city’s wastewater rates would have to nearly triple to an average of $1,082 a year. In contrast, the average annual residential rate in the metro area is only $274.
“These costs are hitting Greater Minnesota cities especially hard,” said Albert Lea City Manager Chad Adams. “That is why we need a benchmark, a limit to how much local businesses and homeowners can reasonably be expected to pay.”
The CGMC’s supplemental grant bill (SF 3075/HF3332) would set that benchmark by either limiting the local costs for wastewater treatment to 50 percent of the total project costs or by limiting the local wastewater rates to no more than double the average annual costs in the metro area. Cities would receive additional state funding based on the option that results in a greater amount.
“Yes, it is going to be expensive for the state to provide additional funding. But if it’s too expensive for the state, it’s definitely too expensive for our small communities,” Rasche said. “This is a wake-up call to our legislators to let them know that our cities need their help and we need it now.”
Coalition of Greater Minnesota Cities
Contact: Julie Liew
As cities across Minnesota face billions of dollars in wastewater infrastructure costs, rural communities simply cannot afford to upgrade or rebuild aging facilities without additional financial assistance from the state
Who: Kelly Rasche, Lakefield city clerk; Chad Adams, Albert Lea city manager; Mark Larson, Glencoe city administrator; Bradley Peterson, CGMC executive director, and other Greater Minnesota city leaders
What: Press conference about the need for a bonding bill that addresses wastewater infrastructure costs in Greater Minnesota
When: 1:30 p.m., Wednesday, April 11, 2018
Where: Press Conference Room B971, Minnesota State Capitol
For Immediate Release
Feb. 26, 2018
Contact: Julie Liew, email@example.com
Water infrastructure funding bill bolstered by strong bipartisan support
Bill would allocate $167M to state grant & loans programs that help cities pay for critical water infrastructure projects
ST. PAUL—City leaders in Greater Minnesota are lauding legislation introduced today that would boost state funding for grant and loan programs that help cities pay for expensive wastewater and drinking water infrastructure projects.
The bill, SF 2668/HF 3122, spearheaded by chief authors Sen. Gary Dahms (R-Redwood Falls) and Rep. Dean Urdahl (R-Grove City), allocates $167 million in state bonding for three key grant and loan programs administered by the Public Facilities Authority (PFA). The proposal has broad bipartisan support, with a wide mix of legislators from both parties and from every corner of the state signed on as co-authors of the legislation. Gov. Mark Dayton has also shown support for the plan by including it in his bonding proposal and touting it again at a Governor’s press conference last week.
“We’re really thankful to have a strong, bipartisan group of lawmakers come together to support legislation that provides funding for water infrastructure,” said Dave Smiglewski, mayor of Granite Falls and president of the Coalition of Greater Minnesota Cities (CGMC). “This is a critical need for communities across the state. Every Minnesotan deserves access to clean water, but cities can’t afford to bear the high construction and technology costs alone.”
The CGMC, which is comprised of 96 cities outside the metro area, has determined that funding for the PFA grant and loan programs is its top bonding bill priority this session.
“Cities have no choice but to upgrade their water facilities and fix broken sewer pipes. Unless they get financial help from the state, these costs all fall on local residents and businesses,” Smiglewski said. “When citizens are hit with water bills that have doubled or tripled, it really puts a strain on the whole community.”
Due to the need to replace aging infrastructure and comply with new, stricter water-quality regulations, the number of cities and sanitary sewer districts currently planning to rebuild or upgrade their drinking water or wastewater infrastructure has jumped in recent years. More than 300 cities, the bulk of which are in Greater Minnesota, currently have projects on the PFA’s Project Priority List which identifies potential wastewater, drinking water and storm water projects that are eligible to receive funding through PFA programs. The Minnesota Pollution Control Agency has estimated that local governments and the state are facing $5 billion in wastewater infrastructure costs over the next 20 years, while the Minnesota Department of Health estimates it will cost an additional $7.4 billion to upgrade and repair drinking water infrastructure over that same time period.
The legislation introduced today, SF 2668/HF 3122, has not yet been scheduled for a hearing. However, the House Capital Investment Committee will hold an informational hearing on Wednesday to learn more about the state’s water infrastructure needs and costs. City officials from at least two Greater Minnesota cities, Pipestone and Little Falls, are expected to testify about the specific needs facing their communities.
“We are glad that legislators are listening to our concerns and taking steps toward getting more funding for these important projects,” Smiglewski said. “I hope this spirit of bipartisanship will continue and lead to the passage of a bonding bill this year. These projects and our communities can’t wait.”
For more information on this bonding bill proposal and why it is important to Greater Minnesota communities, please see this CGMC Info Sheet.
The Coalition of Greater Minnesota Cities is a nonprofit, nonpartisan advocacy organization representing 96 cities outside of the Twin Cities metropolitan area. The Coalition educates legislators about issues important to Greater Minnesota. Visit the CGMC online at greatermncities.org and follow us on Twitter @greatermncities.
The MPCA has opened the Draft Impaired Waters list for comment. Every two years, the MPCA updates this list which identifies the waters that do not meet Minnesota’s water quality standards. The list guides where the MPCA will be developing Total Maximum Daily Load (TMDL) plans. If your wastewater facility discharges upstream of an impaired water, this increases the likelihood that a limit that addresses the impairment could be placed in your permit.
You can find the draft list and instructions on how to comment here. We encourage all cities to work with your wastewater operators and engineers to review the list and determine whether you are discharging into an impaired water. If you believe the impairment listing is erroneous, you may want to work with your engineer or operator to submit comments. Because these determinations are unique to each water body, the CGMC will not be submitting comments on this list.
If you have any questions on this issue, please contact Elizabeth Wefel at firstname.lastname@example.org.
Thank you to everyone who attended the CGMC Fall Conference last week at Arrowwood Resort & Conference Center. More than 100 city leaders representing 50 cities attended the conference — a record attendance!
The conference kicked off Thursday afternoon with a presentation by Marnie Werner, acting director of the Center for Rural Policy, on their study titled “A Quiet Crisis: Minnesota’s Child Care Shortage.” You can watch video of her presentation here and read her Power Point presentation here.
After Werner’s presentation, we delved further into the issues surrounding Greater Minnesota’s child care shortage with a panel discussion featuring Nancy Jost, early childhood coordinator for West Central Initiative; Tim Penny, president and CEO of the Southern Minnesota Initiative Foundation; Jessica Beyer, business development specialist for First Children’s Finance; and Amanda Benda, director of Little Huskies Daycare Center & Preschool in Jackson, Minn. The discussion was moderated by Dan Dorman, executive director of the Greater Minnesota Partnership. Each panelist provided a unique perspective on the issue and offered suggestions on ways city leaders can be more involved in developing solutions. You can watch the panel discussion here.
Broadband was also an important topic at the conference. Bill Coleman, president of Community Technology Advisors and a consultant for the Blandin Foundation, informed attendees about where broadband access stands in Greater Minnesota and outlined the economic impact of world-class broadband infrastructure. You can watch Coleman’s presentation here and read his Power Point Presentation here.
After Coleman’s presentation, CGMC Executive Director Bradley Peterson moderated a legislative panel discussion featuring Sen. Bill Ingebrigtsen (R-Alexandria), Rep. Ben Lien (DFL-Moorhead) and Rep. Jeff Howe (R-Rockville). The panelists discussed the impact of the 2017 legislative session and plans for 2018. The conversation touched on issues such as transportation, bonding and the ongoing lawsuit between the Legislature and Gov. Dayton.
The afternoon was capped by another panel discussion, this one on the role of elected officials in labor and employee relations. Brandon Fitzsimmons, an attorney with Flaherty & Hood, moderated a discussion featuring Waite Park City Administrator Shaunna Johnson, Alexandria City Administrator Marty Schultz and Moorhead City Manager Chris Volkers in which they talked about the “productive” and “unproductive” involvement of elected officials in dealing with unions and personnel issues.
In the evening, attendees enjoyed a cocktail reception and dinner followed by an entertaining and informative quiz show led by the award-winning Theater of Public Policy. During the show, three teams squared off against each other in a battle to see who knew the most about random Greater Minnesota trivia, the history of LGA and other various topics. To the audience’s surprise, Team Lobbyist (Flaherty & Hood lobbyists Tim Flaherty and Marty Seifert) ultimately bested Team Mayor (Granite Falls Mayor Dave Smiglewski and Alexandria Mayor Sara Carlson) and Team Administrator (Slayton City Administrator Josh Malchow and Virginia City Administration Britt See-Benes) to take the quiz show crown.
In addition to speakers and presentations, the conference also included a membership meeting on Friday morning during which members discussed and adopted the CGMC’s 2018 legislative policy positions. To review the adopted positions, click on the following subject areas: Annexation & Land Use, Economic Development, Environment & Energy, LGA & Property Taxes and Transportation. You can also read more about the top priorities for the upcoming legislative in this CGMC Press Release that was sent to the media at the conclusion of the conference.
Thanks again to everyone who attended our 2017 Fall Conference! Please check out the photo gallery on our Facebook page to see pictures from the conference.
For Immediate Release
Nov. 17, 2017
Contact: Julie Liew, email@example.com
A PDF version of this press release is available here.
Greater Minnesota city leaders to state lawmakers: Now is not the time to press the pause button
ALEXANDRIA, MINN.— As the legal fight over funding for the Legislature drags on and the 2018 governor’s race heats up, Greater Minnesota city leaders are urging lawmakers to keep their focus on the upcoming legislative session and not fall prey to distractions.
More than 100 other city officials from throughout Greater Minnesota convened in Alexandria this week for the CGMC’s annual two-day fall conference. At the event, CGMC members adopted the organization’s policy positions and discussed legislative priorities for the 2018 legislative session. While a bonding bill, local government aid (LGA) and city streets were among the top issues, city leaders also stressed the importance of making sure legislators stay on task.
“Now is not the time to press the pause button,” said Granite Falls Mayor Dave Smiglewski, who serves as president of the Coalition of Greater Minnesota Cities (CGMC). “Greater Minnesota still has a lot of unaddressed needs. We are counting on our legislators to stay focused on their jobs and their commitment to strengthening our communities.”
Bemidji City Councilor Ron Johnson voiced concern that with an election looming, legislators may be more interested in touting accomplishments from last session than passing new legislation in 2018.
“The Legislature may have passed tax, transportation and bonding bills last year, but that doesn’t mean their job is done for the biennium,” said Bemidji City Councilor Ron Johnson. “Truth is, the progress made in 2017 only scratches the surface when it comes to meeting all of the ongoing and growing needs in our city and others in Greater Minnesota.”
City officials who attended the conference agreed that a bonding bill likely poses the best hope for passing a piece of major legislation in 2018, noting that many legislators have voiced a desire for a large public works bill to make key investments in the state’s infrastructure. While each city has its own individual needs, a recurring theme throughout Greater Minnesota is the need for additional state bonding dollars to help repair or replace aging waste water treatment facilities.
In addition to bonding, the CGMC plans to advocate for an LGA increase to help cities make up for inflation and increasing costs, as well as funding to assist with much-needed repairs to city streets. There are also a number of issues on the horizon that the CGMC hopes the Legislature will keep on its radar, including the impact a national tax overhaul could have on local communities and the growing child care shortage in Greater Minnesota.
“Legislators and the Governor will have plenty of work to cram into a few short weeks,” Smiglewski said. “Residents of Greater Minnesota expect our state leaders to set their squabbles aside, buckle down and pass legislation that will invest in the future of our communities.”
The MPCA began hearings this week on the sulfate water quality standard which will apply to facilities that discharge into “wild rice waters.” Cities located within 25-60 miles upstream of such waters will be evaluated first by the MPCA to determine whether a limit is required. CGMC members on the list include Alexandria, Babbitt, Bagley, Bemidji, Biwabik, Brainerd, Detroit Lakes, Ely, Foley, Hinckley, Hoyt Lakes, Le Sueur (Minnesota River Valley Public Utilities Commission), Plainview, Princeton, Red Wing, Rushford, Sandstone, Staples, Wabasha, Wadena and Winona.
Our preliminary analysis demonstrates that future compliance with the sulfate standard could require expensive treatment upgrades such as reverse osmosis, membrane filtration, and/or crystallization and evaporation. These upgrades could cost individual cities $10-$20 million or more, depending upon site-specific information.
We recommend that affected cities participate in the rulemaking process by submitting comments and/or attending a public hearing. Hearings began Oct. 23 in St. Paul, and will be held around the state over the next few weeks. You can find a complete list of hearings here.
We are in the process of finalizing our talking points for affected cities and will be circulating those soon. If you would like a copy or have other questions, please email Elizabeth Wefel at firstname.lastname@example.org.
Each fall, CGMC members work together to shape the Coalition’s policy positions for the upcoming legislative session. Policy committees will be convening by conference call in October and early November to draft recommendations which will be discussed and voted on by the full membership at the Fall Conference Nov. 16-17. Serving on a policy committee is a great way to contribute to the work of the CGMC. Please contact the appropriate staff member listed below if you are interested in serving on one or more of the committees. The exact meeting dates and times will be determined soon.
- Economic Development will meet at 10 a.m. on Tuesday, Oct. 31. Contact Bradley Peterson at email@example.com.
- LGA/Property Taxes will meet at 2 p.m. on Wednesday, Nov. 1. Contact Bradley Peterson at firstname.lastname@example.org.
- Transportation will meet at 10 a.m. on Thursday, Nov. 2. Contact Shane Zahrt at email@example.com.
- Annexation and Land Use will meet at 9 a.m. on Friday, Nov. 3. Contact Elizabeth Wefel at firstname.lastname@example.org.
- Environment and Energy will meet at 2:30 p.m. on Tuesday, Nov. 7. Contact Elizabeth Wefel at email@example.com
The Legislative-Citizens Commission on Minnesota Resources (LCCMR) is responsible for recommending how $45.7 million from the Environmental Trust Fund should be spent. The LCCMR received a total of 217 proposals requesting approximately $183 million in funding, and narrowed it down to 101 projects requesting $120.4 million for proposals to present over the next two weeks.
A number of the projects in the running for funding could benefit Greater Minnesota. Proposal 201-G would provide $3 million for local parks, trails and natural areas grants. These grant programs provide funding to projects that do not qualify for Legacy funds and they are a top priority for the Greater Minnesota Parks and Trails organization to which many CGMC cities belong.
In another proposal, the Minnesota Pollution Control Agency (MPCA) is seeking funding for a wastewater treatment plant optimization pilot program (proposal 035-B) that would seek ways to help facilities perform better and meet stricter standards without costly facility upgrades. CGMC cities would be eligible to apply for the pilot if it is funded.
You can review these projects and others selected here (the projects that will present to the LCCMR are marked with an X).
Please consider reaching out to LCCMR members and ask them to support projects that benefit Greater Minnesota, particularly the two mentioned above. You can find the members’ contact information here.
The Environmental Quality Board (EQB) is public body composed of several agency heads, as well as members of the public appointed by the Governor. The EQB provides leadership and coordination on statewide environmental issues including environmental review, state water planning and coordination, and strategic energy and environmental planning. This year, the Legislature expanded the number of citizen slots and specifically designated four for Greater Minnesota, one from each of the rural congressional districts 1,2, 7 and 8.
The posting for these positions will remain open until filled, but the first review of applications will take place Aug. 25. You can learn more here.