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Council backs DNR grant application for Glacial Lakes Trail extension after debate over local match

Paynesville City Council · March 9, 2026
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Summary

Paynesville council approved a resolution supporting a $25,000 Minnesota DNR regional trail grant application to help match federal funding for the Glacial Lakes Trail extension, but members debated how to cover an estimated $60,000 local match and interim cash shortfalls.

Chuck, a city staff presenter, told the Paynesville City Council the Glacial Lakes Trail extension (segment one) runs along Highway 55 from Burr Street to County Road 130 and that the city has $440,000 in Transportation Alternatives federal funding for 2027 for the project. He said staff is seeking $25,000 through the Minnesota Department of Natural Resources regional trail fund to help match federal dollars and that about $60,000 of local match would remain.

Council members pressed staff on timing and cash flow. One member noted the trail account showed an approximately $11,000 shortfall and asked whether the city could wait until money is available or needed design and environmental-review tasks would miss federal deadlines. Chuck said the environmental-review document must be completed by December and that while the DNR grant could be pursued again next year if unsuccessful, substantial design work is required now.

Members discussed short-term funding options, including borrowing from reserves, a temporary interest-free loan modeled on a prior "AMPI Park" loan, or using CIP trail funds. Several council members said the tourism advertising fund cannot be used for infrastructure and opposed tapping that revenue. Council asked staff to develop options for a loan or payback structure and to bring more detailed funding scenarios to the retreat or next working session.

After discussion, Council Member Brick moved and the council voted to approve Resolution No. 2026-07 and a letter of support for the city's application to the Minnesota DNR regional trail grant program for the Glacial Lakes regional trail extension (segment one). The motion carried with those present indicating "I" and no opposition recorded. The council left the second part of the trail requests for later consideration.

The council directed staff to refine the local funding options, including what a short-term loan or use of internal reserves would look like, and to return with recommendations at an upcoming meeting.

The council's action advances the city's effort to secure state matching funds for the federally supported trail project, while underscoring that funding details and payback plans remain to be resolved before construction proceeds.