Title
Amending the 2022 Saint Paul Regional Water Services budget resulting in an increase in spending and financing of $10.5 million for a subrecipient agreement with the City for American Rescue Plan funds.
Body
WHEREAS, the Board of Water Commissioners of the City of Saint Paul (the “Board”) asserts per Minnesota state law that the replacement of water service lines comprised of lead is a public benefit; and
WHEREAS, the Board authorized and directed staff to initiate a 10-year enhanced lead service line replacement plan as presented to the Board at its February 8, 2022 meeting; and
WHEREAS, the City of Saint Paul (the “City”) received American Rescue Plan grant funding (“Funds”) from the United States Department of Treasury; and
WHEREAS, the City has identified the importance of using a portion of those Funds for the replacement of lead pipes within the city of Saint Paul; and
WHEREAS, the City passed RES 22-448 budgeting $4 million of Funds for SPRWS through a subrecipient agreement for Lead Water Pipe Replacement (“Project”); and
WHEREAS, the City subsequently passed RES 22-1022 to budget an additional $10.5 million in Funds to SPRWS for the Project, for a total of $14.5 million in Funds; and
WHEREAS, SPRWS wishes to budget the $10.5 million in additional Funds, and to amend the financing and spending plan for said Project; and
WHEREAS, SPRWS will use the Funds to replace lead water pipes in the City of Saint Paul; and
WHEREAS, SPRWS will be treated as a subrecipient of the City, and the City will disperse the Funds to SPRWS on a reimbursement basis; and
WHEREAS, the City and SPRWS will execute an amended subrecipient agreement to include the additional $10.5 million in Funds; and
WHEREAS, SPRWS wishes to accept said grant Funds and amend the financing and spending plan for said Project; and
WHEREAS, the Board of Water Commissioners approved RES 22-895 at the Water Board Meeting on June 7, 2022, recommending acceptance of the grant Funds and approval of the amendment to the 2022 Adopted Budget; therefore, be it
RESOLVED, that the City Council of the City of Saint Paul, upon recommendation of the Mayor does hereby recommend amendment to its 2022 Adopted Budget, resulting in an increase of spending and financing in the amount of $10,500,000, resulting in an amended 2022 Budget of $264,753,414 the details of such are attached.
Financial Analysis
See Attachment.