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L <br />league of minnesota cities <br />LAND USEj ENERGY ENVIRONMENT AND TRANSPORTATION <br />LUEET-1. Wastewater Treatment (A) <br />Clean water is vitally important to the citizens of this country and <br />particularly to residents and visitors of Minnesota. Minnesota's <br />cities remain committed to improving water quality. Unfortunately, <br />the costs involved in providing cleaner water are staggerinT. Because <br />of the incredibly cost, it must be recognized that it is economically <br />impractical to immediately eliminate wastewater pollution. Therefore, <br />all levels of government must take a reasonably balanced approach to <br />solving the wastewater pollution problem. <br />The ability of cities to comply with any clean water program must be <br />recognized as contingent upon the availability of adequate funds for <br />treatment facilities. Since 1978, federal funding for the wastewater <br />treatment construction grant program has been cut in half. <br />Additionally, the federal share of construction grants dropped from <br />75 to 55 percent ,n fiscal year 1985. The same budget constraints <br />facing the federal government exist at the state and local level but <br />to a greater degree due to a limited income base. The League <br />supported, and continues to support, state efforts to establish a <br />stable funding program with 80 percent state/federal funding and 20 <br />percent local funding. General fun9.ing to support this program is -i <br />essential, either from state bond's or general re ... tnues. <br />1. Equalization Efforts. Cities which received financial assistance <br />between 1985 and 1987 were required to locally finance between 30 and <br />50 percent of construction costs. Cities receiving grants both <br />before and after this period, received grants that allowed local <br />financing to br no more than 20 percent of the project costs. <br />Principles of fairness dictate that these grant recipients receive a <br />small supplemental grant from the state to reduce the local snare to <br />20 percent, thus equalizing the benefits among communities. <br />2. The League also supports alternatives to grant programs. <br />Revolving loan funds are acceptable financing alternatives to the <br />extent that grant programs are not suffici-ntly funded and the loan <br />program is suppismentary to, and not a replacement for, grant <br />programs. Any loan program should take into consideration varying <br />local financial capabilities. <br />-37- <br />1 83 university avenue east, at. Paul, minnesota 5511 01 (612) 227.5600 <br />