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HF 4942

STREAMS regional wastewater treatment facility design funding provided, bonds issued, and money appropriated.

2025-2026 Regular Session Introduced by Bobbie Harder

Provides up to $4 million in design grants (with bonds) for a regional STREAMS wastewater facility in Winthrop, New Auburn, and Lafayette; no construction funds now.

Introduction and first reading, referred to Capital Investment
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Bill Summary · HF 4942

Summary of HF 4942 (2025-2026) – STREAMS regional wastewater treatment facility design funding

Purpose and intent

  • Establishes funding to design the STREAMS regional wastewater treatment facility, a project involving multiple communities in southwest Minnesota (Winthrop, New Auburn, and Lafayette).
  • The bill authorizes the sale of state bonds to finance the design phase and provides targeted grants to participating cities for engineering and planning work.

Key provisions

Section 1: STREAMS regional wastewater treatment facility

  • Subdivision 1. Appropriation
    • A total of $4,000,000 is appropriated from the bond proceeds fund.
    • The funds are to be provided as one or more grants to the cities of Winthrop, New Auburn, and Lafayette (or to a combination of two or more of these cities).
    • Purpose of the grants: to design the STREAMS regional wastewater treatment facility, described as being focused on economies of scale and sustainability through regional cooperation.
  • Subdivision 2. Bond sale
    • To finance the appropriation, the Commissioner of Management and Budget is authorized to sell and issue up to $4,000,000 in state bonds.
    • Bond issuance must comply with Minnesota statutes (sections 16A.631 to 16A.675) and constitutional provisions (Article XI, sections 4 to 7).

Effective date

  • The section becomes effective the day after final enactment.

Affected entities and beneficiaries

  • Primary beneficiaries: the cities of Winthrop, New Auburn, and Lafayette (and potentially combinations of these cities) that would receive design grants.
  • Secondary beneficiaries: the broader regional wastewater project stakeholders and the public facilities ecosystem that would benefit from planned design work toward a regional facility.

Procedural and timeline aspects

  • Status: Introduced and referred to the House Capital Investment Committee on 4/13/2026.
  • Financial mechanism: Uses bond proceeds to fund a design phase; bonds up to $4 million would be issued under state bonding authority.
  • Timing: Effective upon final enactment; design funding would be available immediately after enactment, subject to bond issuance.

Potential implications

  • Enables regional planning for wastewater treatment, potentially improving efficiency, economies of scale, and sustainable management for the involved communities.
  • Creates a concrete funding path (design grants) and a legally authorized debt financing mechanism (bonds) to support the initial phase of the project.
  • Significantly, the bill does not appropriate construction funds at this stage—only design funding and bonding authority for the design phase.

Notes for readers

  • The bill focuses solely on the design phase funding and does not authorize capital construction costs at this time.
  • If passed, subsequent legislation or actions would likely address construction funding, project scope, and long-term governance of the STREAMS regional facility.

Compiled from official sources — confirm details with the bill’s official record.

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