Title
RESOLUTION AUTHORIZING APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY (MPFA) FOR A FORGIVABLE LOAN FROM THE DRINKING WATER REVOLVING FUND FOR CONSTRUCTION OF THE "2026 NEIGHBORHOOD LEAD SERVICE LINE REPLACEMENT" PROJECT (PFA PROJECT 1690011-31, CITY PROJECT 2324 AND 2325) AS DESCRIBED IN THE LOAN APPLICATION.
Body
CITY PROPOSAL:
RESOLVED, that the City of Duluth is hereby applying to the Minnesota Public Facilities Authority (MPFA) for a loan from the Drinking Water Revolving Fund for lead service line replacement projects as described in the loan application, attached hereto as Exhibit A.
BE IT FURTHER RESOLVED that the City of Duluth estimates the MPFA-financed amount to be $11,805,683.
BE IT FURTHER RESOLVED, that the City of Duluth has the legal authority to apply for the forgivable 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.
BE IT FURTHER RESOLVED, that the City of Duluth hereby expresses its official intent to use the proceeds of this loan to reimburse construction expenditures made prior to the issuance of its general obligation bond to the Public Facilities Authority.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes submission of the attached loan application to the Minnesota Public Facilities Authority to fund the "2026 Neighborhood Lead Service Line Replacement" projects which includes lead service line replacements in the East Hillside and Endion neighborhoods. The City is seeking funding from the Minnesota Public Facilities Authority which is distributing State and Federal funds designated for lead service line replacement projects. The MPFA program requires application for a loan for a portion of the Federal funds. This loan principal is paid in full by the State of Minnesota funds. The loan for the project is for funding tracking purposes only. No interest will be accrued, ...
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