Murray County adopts JPA to allow Red Rock water project financing; county to issue $8.07 million in GO bonds
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The Murray County Board adopted a joint powers agreement enabling issuance of $8,071,000 in general-obligation bonds to fund part of Red Rock Rural Water System’s $16 million project to connect about 350 residences near Lake Shetek and Lake Sarah; board members approved the JPA July 15 and the attorney required all nine counties’ approval before bond issuance.
The Murray County Board of Commissioners on July 15 adopted a joint powers agreement (JPA) that clears a path for construction of a multi-phase Red Rock Rural Water System project and authorizes a county issuance of $8,071,000 in general-obligation (GO) bonds to finance part of the work. The motion to adopt the JPA was moved by Commissioner Roger Zins and seconded by Commissioner Mark Carlson; the board approved it.
The JPA covers a construction program Red Rock described as three phases: an initial phase starting in approximately 45–60 days to connect roughly 50 residents on Lake Sarah and Pomier Lane on Lake Shetek; a second phase in fall 2025 to build mainline pipe from Red Rock’s new water treatment plant; and a third phase in summer 2026 to connect about 300 additional residences, for a total of roughly 350 connections.
Red Rock provided an estimated project budget of $16,000,000 and a funding breakdown included in the board packet: $8,071,000 to be financed with GO bonds (to be issued by a county), $1,842,000 from a USDA Rural Development grant, $5,500,000 in state bonding/grant funds, $387,000 in connection fees from the City of Avoca, and $200,000 as Red Rock’s contribution.
The board’s packet and presentation noted a legal and contingent financial risk under Minnesota Statute 116A.24, subdivision 3: if Red Rock were to default on the GO bonds, statute assigns liability among the counties that receive water from Red Rock in proportion to the land served within each county. The materials also stated that the attorney responsible for ensuring statutory compliance (identified in the packet as Mia Thibodeau) requires all nine counties that receive Red Rock water to approve the JPA before the bonds can be issued.
Board members said Red Rock will repay the bonds but recorded the statutory risk as part of the administration’s recommendation. The county motion directs execution of the JPA so Red Rock can proceed with bond issuance and contracting; the packet asked that the JPA be signed by Friday, July 25, to allow Red Rock to pay contractors starting construction.
The board took no recorded roll-call vote in the minutes for this motion beyond the stated "Motion Passed." The matter will proceed through the administrative steps required to issue the bonds and complete the three-phase construction schedule.