5.1 Public Hearing - Small Cities Development Program

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The City of Pequot Lakes is 52.66 percent Low to Moderate Income (LMI). These 1,140 also rely on state and federal assistance, and the investment will be $1,237.72 per person. The SCDP assistance of $600,000 will equate to $526.32 per LMI resident. Considering this investment to last 30 years at a minimum, this will compare to an investment of only $17.54 per LMI resident per year. This is a small price to pay for safe and healthy water sources. The city provides water and wastewater services to the downtown urban area. There are 381 connections to the wastewater system who are in that key area. The Pequot Lakes City limits encompasses a large wilderness area surrounding the city, that includes seasonal cabins, resorts and country homes. These city residents do not receive wastewater services, although they pay city taxes and will financially benefit. The sources of funding for this project include $600,000 of SCDP funds, and $811,000 of USDA -Rural Development or PFA funding. The city has passed the resolution for the PFA application, expected to be submitted by the end of March 2023. They are on the PPL and are listed in Part B of the Intended Use Plan (IUP). As soon as the state provides funding for PFA, they will move ahead with this project. 6. Does the project involve service connections to individual households and properties? a. ❑ Yes (If yes, describe how the connections will be paid for: b. ® No 7. Has an application been made to USDA Rural Development (RD) and/or Minnesota Public Facilities Authority (PFA)? a. ® Yes b. ❑ No 8. If applicable, describe the use of Minnesota Investment Funds (MIF) on this project. Narrative Answer: The City of Pequot Lakes is not using Minnesota Investment Funds on this project. They have partnered with Brainerd Lakes Area Economic Development Corporation (BLAEDC) on a regional loan fund for business startups and expansions. Therefore, they do not have MIF funding available for the wastewater project. 9. If SCDP is the only source of funding, describe why other funds are not available to assist with funding. Narrative Answer: The City of Pequot Lakes is applying to the Minnesota Public Facilities Authority (PFA) for the remainder of the funding for this project. If PFA does not receive bonding funds in 2023, Pequot Lakes will continue the application to USDA -Rural Development. SCDP funding is not the only source of funding for the wastewater improvement project. 10. Have cost estimates considered Davis -Bacon wage rates and implementation costs? Small Cities Development Program (SCDP) 2023 Full Proposal Public Facilities Infrastructure 12