HomeMy WebLinkAboutVIII-07 Approve the Application to the Minnesota Public Facilties AuthorityCity Council Memorandum
To: Mayor Fasbender & City Council Members
From: Ryan Stempski, P.E. – Public Works Director
Date: May 5, 2025
Item: Consider Resolution to Approve Application to the Minnesota Public Facilities Authority
COUNCIL ACTION REQUESTED
The Council is requested to approve application to the Minnesota Public Facilities Authority (MPFA) to obtain a loan in
the amount of $8.4 Million to fund the Central Water Treatment Plant and Water Lines Project.
BACKGROUND
The Central Water Treatment Plant and Water Lines Project is estimated to begin construction in August 2025. The
project has received estimated funding support from: MPCA Planning and Design Grant ($1.2 Million), 3M East Metro
Settlement Funds for Well No. 5 ($15.1 Million), and an Emerging Contaminants Grant ($3 Million). This leaves an
estimated $8.4 Million to fund the project. The MPFA loan is a low-interest loan (about 1.5%) and saves almost $1
Million in interest. This loan must be repaid with water rates. The City Council discussed and supported the MPFA
loan in a City Council Workshop on April 7, 2025.
ATTACHMENTS
Resolution Approving the Application to the Minnesota Public Facilities Authority
VIII-07
CITY OF HASTINGS
DAKOTA COUNTY,MINNESOTA
RESOLUTION NO.
RESOLUTION APPROVING THE APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY
WHEREAS, the City of Hastings intends to apply to the Minnesota Public Facilities Authority for a loan necessary
to construct the Central Water Treatment Plant and Water Lines Project.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS; that
1. The City of Hastings is hereby applying to the Minnesota Public Facilities Authority for a loan from the
Drinking Revolving Fund for improvements to its municipal dinking water system as described in the loan
application.
2.The City of Hastings estimates the loan amount to be $8.4 Million or the as-bid cost of the project.
3.The City of Hastings has the legal authority to apply for the loan, and the financial, technical, and managerial
capacity to repay the loan and ensure proper construction, operation and maintenance of the project for its
design life.
ADOPTED BY THE CITY COUNCIL OF HASTINGS, MINNESOTA, THIS 5TH DAY OF MAY, 2025.
Ayes:
Nays:
Mary D. Fasbender, Mayor
ATTEST:
Kelly Murtaugh, City Clerk
SEAL
VIII-07