City Council Meeting Date: June 3, 2025
To: Mayor and City Council
From: David Benentt, Public Works Director/City Engineer
Title
Consider Resolution Requesting State Capital Investment Bonds for Water Treatment Plant in the City of Northfield.
Body
Action Requested:
The Northfield City Council approves a Resolution Requesting State Capital Investment Bonds for Water Treatment Plant in the City of Northfield.
Summary Report:
There was discussion at the May 20, 2025 worksession related to interest in whether to pursue State Bonding dollars for any local capital projects. Pursuing funding for the water plant was of interest. Staff developed estimates for costs for the gravity filtration plant and ability to expand office, storage of equipment and future plant treatment options. However, for now Council direction of a resolution will allow for submission of state funds following application requirements. There will be further discussion on the potential project at a future meeting related to timing, process (including participation), and scoping details.
Background
In Minnesota, state capital bonding refers to a process where the state borrows money, primarily through the issuance of general obligation (G.O.) bonds, to finance capital improvement projects. These projects, often funded through capital budgets, can include land acquisition, construction, and repair of state facilities, as well as grants to local governments for similar purposes. There is a deadline in June for local governments to submit interested local projects for consideration by the Governor and this also is the standard process for the bonding committee of the Minnesota Legislature to review requests.
The City of Northfield has elevated levels of Manganese in its drinking water. The Manganese levels are above the health-based risk level of 0.10 mg/L for infants in the City of Northfield.
The City desires to build a Water Treatment Plant to reduce the levels of Manganese in the drinking water to be below the health-based risk levels from the Minnesota Department of Health.
The City is taking proactive measures and has acquired property for a centralized Water Treatment Plant and in 2025 is installed new water mains from well sites to the centralized water treatment plant.
The estimated cost for the a Gravity Filtration Water Treatment Plan is $64 Million, the City is requesting 50%, $32 Million from the State to provide safe drinking water for all residents in the City.
Attached is a link to Minnesota Management and Budget Project page should any individuals be interested in exploring more background information.
Alternative Options:
NA
Financial Impacts:
Total Water Treatment Plant - $64 Million, requesting $32 Million
Tentative Timelines:
2026 Legislative Request.