Albert Lea council approves $1.03 million taxable notes to fund lead service line replacement

The Albert Lea City Council voted Jan. 13 to accept an offer from the Minnesota Public Facilities Authority to purchase $1,030,781 in taxable grant anticipation revenue notes to finance the city’s lead service line replacement project.

City Manager (name not specified) described the financing as part of a state initiative to replace lead service lines and said the city will issue the taxable notes on Feb. 5; the PFA will repay the full amount through a grant and master agreement. "This is part of a February initiative that the state of Minnesota has put together to replace lead lines, for, better health and better water quality," the City Manager said.

Councilor Anderson moved to approve the resolution authorizing issuance of the notes; Councilor Holland seconded. During discussion an unnamed council member stated they would abstain "due to one of the people working on the project as a relative." The clerk recorded the motion as carried; the resolution passed with at least one abstention recorded on the floor.

The council’s action authorizes the city to issue taxable grant anticipation revenue notes to cover project costs; according to the staff presentation the PFA will repay the note via the grant and master agreement once issued. The council did not record the final vote tally for yes/no in the public record beyond verbal confirmation that the motion carried and that one member abstained.

The action advances the city’s participation in the state-led lead service line replacement program; staff said the project has a Minnesota Department of Health project ID and a local project order ID under the PFA program (project IDs provided on the staff report). Specific contractor selections, replacement schedules and individual household affectation were not discussed during the council action and were not specified on the record.