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Waverly council files Elm Avenue engineering report and moves to pursue state wastewater funding
Summary
City Engineer presented a $5.68 million Elm Avenue infrastructure estimate and updates on a joint wastewater project that may qualify for a PSIG grant of up to about $10 million; the council approved Resolution 2026-10 to file the Elm Avenue report and set a public hearing for March 25.
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Waverly’s City Engineer presented a preliminary engineering report and the City Council on Feb. 25 approved filing the report with state agencies to pursue priority funding for Elm Avenue and related infrastructure work.
City Engineer Sheila Kroshe told the council the Elm Avenue replacement is estimated at $5.68 million, including roughly $3.0 million for street reconstruction, $1.5 million for a lift station replacement, $1.0 million for water main work and $180,000 for storm sewer improvements. The estimate includes a 10% contingency and full engineering costs. Kroshe recommended a public hearing on the project for March 25 and submitting plans and specifications to the Minnesota Pollution Control Agency (PCA) and the Department of Health to seek placement on priority funding lists.
Separately, Kroshe summarized the joint wastewater project’s funding prospects: the project is eligible for the Point Source Implementation Grant (PSIG) program and could qualify for roughly $10 million—about 90% of the $12 million of PSIG-eligible costs within a roughly $13 million total project—if the project achieves certification and ranks high enough on the priority list. Kroshe said the project currently ranks 37th on the list; she advised focusing on certification this year because PSIG grants require that expenditures occur after an agreement is signed, unlike some loan programs that allow reimbursement for prior work. Kroshe also reported the city has about $2 million in federal direct appropriations from Emmer allocated to the project.
Council voted 4-0 to approve Resolution 2026-10 authorizing filing the Elm Avenue preliminary engineering report with PCA and moving the funding process forward. With PCA and priority-list placement, the city would have up to five years to proceed with construction once listed, and staff said bidding could occur in February 2027 with construction in 2027 depending on funding availability and council priorities.
Why it matters: Filing the Elm Avenue report begins the city’s formal push for state prioritization and funding; the wastewater project’s grant eligibility and certification timing affect whether external grant funds or loan programs will cover the bulk of the cost.
