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City staff: treatment plant construction underway; officials seek $10 million in state bonding
Summary
City staff told the Planning Commission that work on the new water treatment plant has started, the city is requesting $10 million in state bonding to help fund the project, the city floated a $14 million bond at about 3.72% for half the project, and officials warned residents that utility rates have increased to cover costs.
City staff reported to the Planning Commission on April 27 that construction has begun on a new municipal water treatment plant and that the city is pursuing state bonding to help cover costs.
Staff said crews have started excavation and that an official ribbon cutting is anticipated near June 1. Officials told commissioners they are asking for $10 million from the state bonding bill to support the project; staff cautioned that the size of the statewide bonding appropriation will determine what local projects receive funding. Staff also said the city recently floated a $14 million bond to cover about half of the project and secured an interest rate near 3.72%, and noted that utility rates have risen to help cover treatment plant costs.
Staff recommended conservation (use less water) and explained the city's sewer billing is a flat rate — a point that affects comparisons with other communities. Staff also summarized upcoming road maintenance bidding (coordinated with a neighboring community to improve bids), an inter‑jurisdictional staffing mutual‑aid agreement with Victoria for building/inspection support, a pending Environmental Assessment Worksheet (EAW) for a Highway 7 development that must be completed before Met Council review, and the city's outreach regarding state housing legislation that would preempt local zoning (staff said the bill appears dead this session but warned it may return).
What happens next: staff will continue construction oversight, pursue state bonding, and return items requiring council action to the City Council for formal approval.
