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Sherburn council approves sewer-lining project, aims for PFA grant to cover most costs
Summary
Council approved moving forward with a Main Street sewer-lining project estimated at $580,500 and directed staff to apply for PFA funding that bond counsel said could cover roughly 80% of costs; engineers' up-front fee of $43,000 was noted as reimbursable if grant-funded.
The Sherburn City Council on Jan. 20 voted to proceed with a Main Street sewer-lining project and to apply for grant funds through the state Public Facilities Authority (PFA).
City bond counsel summarized engineering estimates and affordability calculations, saying the total project cost is approximately $580,500 and that the city is likely eligible for PFA funding covering about 80% of the project. “It is probably the least expensive opportunity that the city will ever have to implement the project,” the clerk read from bond-counsel guidance.
Council discussion noted that engineering work would require an upfront payment of $43,000; that fee could be reimbursed if the city is selected for PFA assistance. Bond counsel and staff recommended implementing a schedule of modest annual sewer-rate increases (the packet referenced 5% annual increases through 2029) to maintain sewer-fund health and support possible debt service.
Council approved the recommendation by voice vote and directed staff to submit a PFA application and to authorize the necessary engineering contract pending grant selection. Next steps include completing the engineering cost authorization and reporting back on grant application results.
