Resolution 17-26

RESOLUTION NUMBER 17-26

COMMITTING LOCAL FUNDS AND VERIFYING SECURED PROJECT FUNDING FOR THE CITY OF MOUNTAIN IRON WASTEWATER TREATMENT FACILITY IMPROVEMENTS

WHEREAS, the City of Mountain Iron has identified the need to complete improvements to its wastewater treatment facility to meet applicable permit requirements, maintain reliable wastewater treatment service, and address aging infrastructure, hereinafter referred to as the “Project”; and

WHEREAS, the Project is identified by the Minnesota Public Facilities Authority as Project No. 281119; and

WHEREAS, the current estimated total cost of the Project is $21,100,000; and

WHEREAS, the City intends to seek financial assistance through the Point Source Implementation Grant Program, the Clean Water State Revolving Fund, the Water Infrastructure Fund, and other applicable funding programs; and

WHEREAS, the availability and final amounts of such financial assistance have not yet been determined; and

WHEREAS, the City anticipates funding the Project through a combination of the following programs, as outlined within the PSIG application:

• Point Source Implementation Grant (PSIG) assistance;
• USDA-RD Water and Waste Disposal Loan Funds;
• Water Infrastructure Fund assistance, if eligible and available;
• Clean Water State Revolving Fund or other legally authorized financing;
• wastewater utility revenues and available reserves;
• other awarded or available financial assistance; and
• other legally available City funds, such as GO bonding;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOUNTAIN IRON, MINNESOTA:

1. Commitment to Remaining Project Costs. The City commits to obtain CWSRF financing or other legally authorized financing and to use wastewater-system revenues, available reserves, proceeds of lawfully issued obligations, or other legally available City funds sufficient to pay all Project costs not covered by awarded grants or other secured funding.

2. Funding Shortfalls and Cost Increases. If anticipated financial assistance is reduced, delayed, or unavailable, or if the actual Project cost exceeds the current estimate, the City commits to provide or obtain the additional funding necessary to complete the Project, subject to the separate financing proceedings and approvals required by law.

3. Financial Capacity. Based on the current estimated Project cost, anticipated financial assistance, available financing mechanisms, and the City’s authority to establish wastewater rates and charges, the City Council determines that the Project is financially feasible and that the City has the capacity to provide or obtain financing for the full cost of the Project. The City commits to establish and maintain wastewater rates and charges sufficient to support the reasonable costs of operating and maintaining the wastewater system, Project-related debt service, and any required reserves.

4. Verification of Full Project Funding. Based on the financial commitments and determination of financial capacity established by this resolution, the City Council verifies that financing will be available for the full estimated cost of the Project.

5. The Mayor, City Administrator, and other appropriate City officials are authorized to submit this resolution and supporting documentation to the Minnesota Public Facilities Authority and to take the actions necessary to carry out its intent. Nothing in this resolution constitutes the issuance of a bond or other obligation, and any debt issuance remains subject to the separate proceedings and approvals required by law.

DULY ADOPTED BY THE CITY COUNCIL THIS 20^th DAY OF JULY, 2026.

____________________________________

Mayor Peggy Anderson

ATTEST:

__________________________________

City Administrator