FINANCIAL OVERVIEW
Project Overview
Protecting Lake Bemidji and Our Environment
The Northern Township Wastewater Project is a crucial initiative designed to protect the pristine waters of Lake Bemidji and promote environmental sustainability. This project represents a significant investment in our community’s future, ensuring that our infrastructure meets the needs of current and future generations.
By implementing state-of-the-art wastewater treatment solutions, we aim to reduce pollution, safeguard public health, and support the ecological balance of our region. This project is not just about infrastructure; it’s about preserving our natural resources and enhancing the quality of life for all residents.
Join us in this transformative journey as we work together to create a cleaner, greener, and more sustainable Northern Township. Your support and understanding are vital as we move forward with this essential project.
AN IMPORTANT NOTE
Please note that all financial information provided on this page reflects the current state of the wastewater project. The figures presented are preliminary estimates and are subject to change as final project costs, bonding rates, and contractor bids are determined. Please check back for project updates.
Project Costs
The Northern Township Wastewater Project is divided into two phases, each addressing critical components of our wastewater system:
Phase 1:
Roads: $1,457,100
Treatment Plant: $3,228,750
Collection System: $8,119,610
Total: $12,805,460
Phase 2:
Estimated at approximately $6 million
Total Project Cost:
Estimated at approximately $19 million across both phases
Funding Sources Overview
Executive Summary
In December 2022, Northern Township secured a $5 million grant from the 2023 Congressionally Directed Spending (CDS) funds. This substantial financial support was followed by an additional $1 million grant in February 2024 from the next year’s CDS funds. These grants are crucial for the project, which has an estimated total cost of $19 million, with phase one projected at $12 million. With these grant dollars, the Township is able to pay 100% of the mechanical plant installation cost and 40% of the collection system. Ongoing efforts to secure more funding are underway.
LAKE BEMIDJI PROTECTION
Township Shoreline Sewered
%
Overall Lake Bemidji Shoreline Protected
%
Project Funding Sources
- Mechanical Plant Grant Dollars Funded 100%
- Project Roads Township Funded 100%
- Collection System Grant Dollars Funded 40%
- Collection System Resident Funded 60%
Special Assessments
Financial Responsibilities for Property Owners
To fund the collection system, property owners within the service area will be assessed based on their property’s equivalent benefited frontage. The assessment rate is currently projected at $165 per equivalent benefited linear foot (EBF), with the average property (85 EBF) receiving an assessment of approximately $14,025.
These assessments will commence once the system is installed, with flexible payment options available, including financing through property tax bills. For residents experiencing financial hardship, Northern Township offers assessment relief programs under Minnesota Statute 435.193, providing assistance to seniors, disabled individuals, and military personnel. For more information on how to apply and the benefits available, please contact the Township office directly.
Operational Expenses
Annual Operating Costs
The ongoing operational expenses of the wastewater system are estimated to be $140,000 annually. These costs are expected to rise at a rate of 3.5% per year, reflecting inflation and other economic factors.
Monthly User Charges
After connection to the system, residents will incur a monthly user charge of $55.00 per Equivalent Residential Unit (ERU). This fee is designed to ensure the financial sustainability of the wastewater system, covering operational costs and contributing to a cash reserve for future infrastructure needs.
Financial Sustainability
Ensuring Long-Term Viability
The Northern Township Wastewater Project has been meticulously planned to ensure financial sustainability. Our cash flow projections indicate a positive balance, with a targeted cash reserve covering 50% of operating costs, next year’s debt service, and an annual deposit of $10,000 into a capital reserve. This strategic approach ensures that we can manage unforeseen expenses and maintain the system effectively for years to come.
Assessment Hardship Program
Financial Relief for Eligible Residents
Northern Township is committed to supporting residents who may face financial challenges due to the wastewater project. Our Assessment Hardship Program offers relief to qualifying individuals, including seniors, disabled residents, and military personnel. Eligibility is determined based on specific criteria outlined under Minnesota Statute 435.193. For more information on how to apply and the benefits available, please contact the Township office directly.
Stay Informed
We encourage all residents to stay informed about the financial developments of the Northern Township Wastewater Project. Regular updates will be provided to ensure transparency and keep you informed about any changes in project costs, funding sources, and assessments. Check back frequently for the latest information and updates. Contact the Northern Township offices with any questions.