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IhDMIIJJ <br /> ,VIIVIWJ Position Statement <br /> Bonding for Public Facilities Authority <br /> Background in order to finance and issue the grants to waiting local <br /> The 2018 Legislature authorized$59 million in entities. <br /> appropriation bonds to fund PFA grants to local water <br /> treatment facilities. Unlike General Obligation Grants, At least three municipal utilities have major water <br /> which are backed by the full taxing and financial upgrades that cannot be completed without the PFA <br /> resources of the issuing authority, appropriation grants. <br /> grants must specify the source of revenue to be used <br /> to repay the bonds. The 2018 Legislature designated Estimates show that the PFA needs additional funding <br /> constitutionally dedicated sales tax revenue to finance beyond the $59 million of currently lost bond funds in <br /> the bonds. Several environmental groups united in order to truly assist local governments. <br /> filing a lawsuit challenging the constitutionality of <br /> using the designated funds for paying back the bonds. The November 2018 State Budget forecast indicates the <br /> This means that bond counsel cannot issue a clean State will start the 2019 legislative session with a $1.5 <br /> opinion on the issuance of the bonds which effectively billion surplus. <br /> blocks the issuance of the bonds and thus denies the <br /> PFA the revenue to issue the grants that municipal Requested Action <br /> utilities and others were counting on to finance MMUA encourages the State Legislature to act quickly <br /> important upgrades to their water utilities to either use cash from the surplus to cover the amount <br /> of the 2018 appropriation bonds for the PFA, or to take <br /> Current Status necessary action to replace the 2018 appropriation <br /> Because of the lawsuit, State bond counsel cannot bonds with general obligation bonds. In addition, <br /> issue a clean opinion on the valid purpose of the additional funding should be provided to ensure full <br /> appropriation bonds, and thus the State cannot issue funding of the PFA's estimated need for the grants it <br /> the bonds and provide the PFA with the needed funds oversees. <br /> fll <br /> . ' <br /> 4, / ' ' If'if 1, '' <br /> V. k <br /> r ,\ ; • <br /> r r <br /> - ', 1 • ;"004,t,-k iii.of--1,!„ / ,.'''';',::+k:,T,Vi',it:ILI . . -4 *'-'.;:. 'xr.,4,;,',.. , <br /> • , yam. _ <br /> ';,hx ��mawy �' : `j. .I c 'S <br /> ,,„�v s _..., - —'__y � 3 x. " '-� t. _I * 'i.... _ <br /> ice'" <br /> ��/tom <br /> PFA financing is a critical component of many municipal water projects in Minnesota. <br /> 2019 State Position Statements/7 <br /> 111 <br />