Lake Lillian, Minnesota, requesting $3.5 million from state for infrastructure project

Jennifer Kotila, West Central Tribune, Willmar, Minn.
·4 min read

Oct. 13—LAKE LILLIAN

— The city of Lake Lillian is requesting that the

Minnesota Legislature

include $3.5 million in funding in the 2024 bonding bill in order to complete its water infrastructure project. It received $3.99 million in funding in the 2023 bonding bill.

The Minnesota House Capital Investment Committee on Tuesday at

Ridgewater College

in Willmar heard information regarding the city of Lake Lillian's request during its capital investment tour.

The city's aging and failing infrastructure has led to critical water issues, including health and safety risks. A recent 2021 study showed that the city's arsenic levels were 2.5 times the allowed compliance level by the

Minnesota Department of Health

.

However, with the aging and shrinking population, funding the project with property taxes alone is nearly impossible.

"We continue to have affordability issues, which is why we need your help," said Lake Lillian Mayor Wendy Lund. "We are asking for an additional $3.5 million to complete this project."

Lake Lillian Council Member Mike Sagness said, "With the limited time available, I would like to spend the next couple of minutes touching on the real sacrifice Lake Lillian citizens are making to complete this vital infrastructure program."

He explained that the median household income for residents of Lake Lillian is $51,000 and more than 50% of its households fall into the low or moderate income category; 8% of households are below the poverty line. More than 30% of the residents of Lake Lillian are older than 65, relying on social security as the sole source of income.

"Given these numbers, it is clear that funding a major water infrastructure project is going to be a challenge," Sagness said, noting that, thus far, the project has been funded through a combination of city loans, grants and this year's state bonding award.

The city uses enterprise funds from water and sewer to service the debt it has incurred on the project and the average household water and sewer bill is currently $122 per month. "This is well above the state average of $94 per month," he said. "Once the project is complete, and if the city has been awarded the state bonding dollars requested, that includes the $3.99 million awarded earlier this year and the $3.5 million requested today, the average water and sewer bill will increase to $138 per month."

Without bonding support, the average monthly water and sewer bill could increase to $200 per month, or close to three times the amount the typical Lake Lillian homeowner pays in taxes each year, according to Sagness.

Explaining that the project is not possible without bond funding assistance, he said, "This will make it possible for the city of Lake Lillian to continue on a path for a bright future for the next generation of residents that want to call Lake Lillian their home."

City engineer Brian Bollig of Bollig Engineering shared the scope of the project, noting that Lake Lillian had to pivot its focus for infrastructure improvements when it found out the issues with high arsenic levels in the water with a water treatment plant that was only 15 years old.

There are also elevated levels of ammonia and organic carbon, and the city is going to use a biologic treatment facility to treat its water, according to Bollig.

However, the city also has to repair and replace its water distribution system, which is more than 65 years old, and its wastewater collection system.

"The most concerning part is their water distribution system is cast iron. The arsenic that is going through their system right now is attaching to those pipes and is in that distribution system," Bollig said. "We need to convert that over to PVC pipes so that arsenic doesn't stick to that and then also take the arsenic out."

The arsenic is naturally occurring in the city's well water.

Other issues that are being addressed through the replacement of the city's water distribution system are lead-based coatings on pipes and in the water tower, and structural deficiencies of the water tower that violate Occupational Safety and Health Administration standards.

The city's sanitary sewers have inflow and infiltration issues, allowing rain and groundwater to seep into the system to fill it over capacity, leading to emergency bypass of untreated wastewater, and the city's stormwater system also needs upgrades to reduce localized flooding.

Currently the city is in phase three of the project and has expended $12.6 million. The underground improvements for the project are expected to be another $15.6 million. The total project cost after completion is expected to be $28.3 million.