Slater council debates Sheldahl contract extension, directs staff to draft exit/notice language

Oct 23, 2024

Council discussed a proposed second amendment that would extend the Sheldahl wastewater service contract another 20 years (creating a possible 40‑year obligation) and directed staff to draft a clause allowing Slater an exit/notice option while staff seeks confirmation from USDA and Sheldahl counsel about funding impacts.

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The Slater City Council spent the bulk of its Sept. 23 special meeting weighing whether to approve a second amendment to its service contract with Sheldahl that would extend the town’s obligations by an additional 20 years. Council members said the U.S. Department of Agriculture (USDA) has tied Sheldahl’s loan/grant calculations to the longer repayment period, and staff warned that refusing the amendment could jeopardize roughly a $1,000,000 connection fee tied to that funding.

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