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Hibbing Public Utilities approves application for $9.2M PFA drinking‑water financing
Summary
The commission authorized staff to apply for up to about $9.2 million from Minnesota’s PFA Drinking Water Revolving Fund to reimburse and finance 2025/2026 water-main and related projects; staff said the loans typically carry interest in the 1–3% range and applications must be signed in early June.
The Hibbing Public Utilities Commission voted May 19 to authorize submitting a Public Facilities Authority (PFA) drinking‑water revolving fund application for up to approximately $9.2 million to support water main and distribution projects incurred in 2025 and into 2026.
Paul (Mr. Scavenino) told commissioners the funding is a low‑cost, reimbursable source intended to support several water‑system projects already in the capital plan—examples included main replacements, hydrant and valve work, and design phase costs for Fourth and Fourth service components. Staff emphasized the application is an authorization to apply (not a commitment to close debt) and that loan closing and final commission approvals would follow if Hibbing is awarded financing. The utility also noted the PFA typically offers very low interest rates (staff said they expect rates in the 1–3% range, subject to market movement).
Commissioners asked for a deadline clarification and were told the signed resolution was needed in early June to be eligible for the current round; staff said application deadlines and intended‑use plan timing make the June action critical to include the 2025 projects. Commissioners also asked for project‑by‑project detail and confirmation that certain service‑line grant funds (a separate pot referenced in the packet) would be allocated correctly and could not double‑count expenses.
The commission approved the motion to make application (motion and second on the record), with staff noting that actual loan amounts would be reimbursed based on eligible, incurred project expenses and that final financing terms and closing would require later commission action.
What’s next: Staff will finalize and submit the PFA application and return with a clean resolution and any updated project cost estimates and reimbursement schedules for commission review.
