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Bradley Peterson says lead service line funding shortfall could threaten 2027 construction season
Summary
Bradley Peterson of the Coalition of Greater Minnesota Cities told the Ely City Council that statewide lead service line replacement will need far more funding than was included in the 2026 legislative package, and warned that without additional dollars in 2027 the construction season could be in jeopardy.
Bradley Peterson, a representative of the Coalition of Greater Minnesota Cities, told the Ely City Council on July 7 that the 2026 legislative session produced a large bonding bill but left critical gaps in funding for lead service line replacement.
Peterson summarized the session as a multiparty negotiation and said the 2026 bonding package totaled about $1.24 billion across programs, including more than $400 million for PFA programs and local water and wastewater grants. He said prior allocations included $240 million in 2023 but that the statewide cost estimate to replace all lead lines is roughly $1.5 billion. "Without an infusion of dollars in 2027, the construction season is in peril," Peterson told the council, and he said CGMC had requested $250 million but the final legislative package included $15 million for lead-line work.
Peterson also reviewed other session priorities that matter to cities, including protection of Local Government Aid (LGA), which he said was not cut in the 2026 session after threats in 2025, and the fate of proposed bills such as the Starter Home Act. He said the Starter Home Act—which would have required preemption of local aesthetic and material standards and required ADUs—failed to advance in the House and did not receive a Senate hearing; Peterson said advocates are likely to return with a new version in 2027.
Councilmember Lahtonen asked whether CGMC had a snapshot for LGA for next year; Peterson said CGMC is proposing an increase. Langowski, who thanked Peterson in the meeting record, noted Ely received over $3 million for the Burntside Water Main Replacement Project as part of recent bonding success.
Why it matters: lead-service-line replacement is a multiyear, multijurisdictional effort that will require sustained, dedicated funding. Local officials in Ely heard that while the recent bonding bill included significant capital investments, the appropriation specifically for lead lines falls well short of estimated needs, which could slow or delay municipal construction projects tied to water infrastructure if additional state funds are not secured in 2027.
