Minnesota Cities Seek State Funding for Water Infrastructure

Water projects make up a third of local government bonding requests as aging facilities and rising costs strain budgets

Mar. 12, 2026 at 7:05pm

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Across Minnesota, cities and counties are seeking state funding to address a range of water infrastructure needs, from upgrading wastewater treatment plants to installing filtration systems for discolored drinking water. These water-related projects make up about 35% of the nearly $1 billion in local government bonding requests this year, highlighting the growing demand for investment in the state's water systems.

Why it matters

Water infrastructure is a critical issue for communities across Minnesota, as aging facilities, updated regulations, and rising construction costs strain local budgets. Ensuring access to clean, reliable water is essential for public health, economic development, and quality of life, making these projects a top priority for many cities and counties.

The details

Cities like Big Lake, Henderson, and Becker are seeking state funding to address a variety of water infrastructure challenges. Big Lake needs to expand its wastewater treatment capacity to keep up with population and industrial growth, while Henderson is looking to install a filtration system to address discoloration issues with its drinking water. Becker, meanwhile, is drilling new wells to find adequate water supplies that don't require expensive treatment.

  • Big Lake's wastewater treatment plant was built in 1980 and is now managing between 800,000 to 850,000 gallons of wastewater per day on average.
  • Henderson has been dealing with discolored drinking water for decades, an issue that has worsened as the city has become more vulnerable to flooding from the nearby Minnesota River.

The players

Big Lake

A city in Sherburne County that has seen its population grow from around 2,200 residents in 1980 to 11,700 in 2020, driven in part by the opening of a major Cargill egg processing facility.

Henderson

A city located along the Minnesota River in Sibley County that is seeking funding to address discoloration issues with its drinking water, which it hopes will spur population growth by reducing frequent road detours caused by river flooding.

Becker

A city located near Big Lake that is drilling new wells to find adequate water supplies, as some of its recent sources have had high levels of nitrates or other contaminants that require expensive treatment.

Erin Campbell

Minnesota's Management and Budget commissioner, who noted that one-third of the nearly $1 billion in local government bonding requests this year were for water infrastructure projects.

Rep. Mary Franson

A Republican state representative who co-chairs the House Capital Investment Committee and argued that a bonding bill should not be used as political leverage when the money can provide clean drinking water to Minnesotans.

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What they’re saying

“If another one of them wanted to come through, that would cause a challenge. We may not have the ability to service them, so that puts us in a really terrible spot because we want to welcome a significant user.”

— Hanna Klimmek, City administrator, Big Lake

“We're the Land of 10,000 Lakes, and in addition to those lakes we have quite a few big rivers. To keep those clean and make sure we can recreate in it and we can drink it, we need to be taking the steps to ensure we have the infrastructure necessary for that.”

— Elizabeth Wefel, Lobbyist, Coalition of Greater Minnesota Cities

“We also have citizens across the state of Minnesota that don't want us to have a bonding bill, either, and want to use it as leverage against the administration and think it's really sticking it to them. Well that's not appropriate and that's not how we should be doing business.”

— Rep. Mary Franson, Co-chair, House Capital Investment Committee

What’s next

The Minnesota Legislature will continue to debate the state's bonding bill, which could provide funding for many of the water infrastructure projects requested by local governments across the state.

The takeaway

The prevalence of water infrastructure projects in local government bonding requests underscores the critical need for investment in Minnesota's aging water systems. As communities grapple with growing populations, updated regulations, and rising costs, state funding will be essential to ensuring access to clean, reliable water for public health, economic development, and quality of life.