Money is tied to pending annexation plans of nearby unincorporated areas
The city of Ranier has been notified that it will receive a grant and loan from the United States Department of Agriculture to improve its water treatment and distribution system.
Ranier will receive a $1.24 million loan and a $296,000 grant from the USDA Rural Development department to replace old piping and install loops in the city’s drinking water system.
“It’s sure going to help water customers,” Ranier Mayor Ed Oerichbauer said, explaining that the program will help “stop hemorrhaging water lines” and create a reliable water system for the city.
Ranier applied for the USDA grant and loan concurrently with the city’s annexation proceedings of nearby French and Jameson additions and other unincorporated areas, according to Oerichbauer.
Ranier only gets the grant and loan if annexation is approved by a state Administrative Law Judge in the Office of Administrative Hearings. If annexation of the unincorporated areas is not approved, Ranier will forfeit the funds, Oerichbauer explained.
Last June, the city approved an annexation agreement with Koochiching County. Water issues were cited at that time by city officials proposing annexation. The Ranier proposal spurred a competing proposal from the city of International Falls, with both cities seeking to annex a foreign trade zone and surrounding land to construct a road. The annexation process is ongoing.
Oerichbauer said the reason for annexing those unincorporated areas was to qualify Ranier for such programs as the USDA grants and loans to fix the drinking water system. The money will be used to replace water lines in French and Jameson additions. Ranier currently serves these areas through its water service, but the areas are not within city limits.
The drinking water system serves both Ranier and residential subdivisions immediately outside city limits. The water distribution system for the service area outside city limits has experienced several breaks the last couple of years. The system also lacks looping, which causes low pressure and a loss of water service when a break occurs.
Once completed, Ranier will have a modern and environmentally safe drinking water treatment and distribution system that will serve the community well into the future, according to information from the USDA.
The mayor explained that the repayment of the loan would be bonded through the city of Ranier.
The city of Garfield in Douglas County and the city of Bertha in Todd County also received grants and loans through the Minnesota program. USDA Rural Development State Director Colleen Landkamer Thursday announced that almost $10 million to make drinking water and wastewater treatment system improvements were received by those three communities. The announcement occurred during a ceremony at the Douglas County Public Works building in Alexandria and was one of several announcements made by the USDA throughout the country during Earth Day ceremonies.
“Earth Day reminds us of the critical role the USDA can play in confronting challenges facing our nation’s natural resources,” Landkamer said in a news release. “The funding announced today will ensure access to better drinking water and safer treatment of wastewater. This will result in cleaner rivers and streams and an overall better quality of life in all three communities.”
