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New Germany seeks $8 million in bonding to expand wastewater lagoons and lift MPCA moratorium
Summary
City officials said New Germany faces a moratorium on new service from the Minnesota Pollution Control Agency and cannot grow until lagoon capacity is added; the city asked for $8,000,000 toward a $10,660,000 project.
City of New Germany officials told the Capital Investment Committee on March 6 that the Minnesota Pollution Control Agency (MPCA) has imposed a moratorium on new connections until the city expands wastewater lagoon capacity. The city asked the committee to support House File 461 with an $8,000,000 bonding request to complete a $10,660,000 upgrade that would add lagoon capacity and allow residential and commercial development.
City representatives said New Germany — with about 465 residents — still carries debt from a water-treatment plant project completed less than a decade ago and currently faces the highest utility rates in Carver County; testimony indicated approximately $7,000,000 in debt remains from that earlier project. Officials said without state assistance sewer rates would need to rise about 85% to fund the expansion, which would effectively prevent planned growth and make affordable housing construction infeasible.
No committee vote occurred at the hearing; presenters emphasized that expanding lagoon capacity would allow nearly 92 platted lots and developers ready to build to proceed immediately once permits and service capacity are available.
