Adopt Resolution #26-092 Authorizing Staff to Apply for Water Efficiency Grant Funding through the Metropolitan Council

In 2024, the City of Ramsey re-applied for a Water Efficiency Grant through the Metropolitan Council and was awarded $14,000.  The grant funds have been used to provide rebates to residential and commercial property owners that are Ramsey municipal water customers and that replaced water using devices (specifically including toilets, smart irrigation controllers, washing machines, and dishwashers) with WaterSense or ENERGY STAR® rated devices.  Presently, there is $968.24 in grant funds remaining (this current grant cycle runs through June 30, 2026, or until the funds are exhausted, whichever occurs sooner).

The Metropolitan Council has announced that it is once again offering a Water Efficiency Grant.  Applications are due by April 17, 2026, and grant recipients will be announced in May, 2026.  The grant program will run from July 1, 2026, through June 30, 2028, which means that if Ramsey was successful in being awarded a new grant, there would be no gap in the water efficiency rebate program.

Observations:
The current grant program runs through June 30, 2026.  If the City applies for the next round of funding and is successful, there would be no gap in program funding.  The Metropolitan Council will continue to contribute eighty percent (80%) of program costs, meaning the City's required matching component remains twenty percent (20%).  The minimum grant award is $5,000 and the maximum is $75,000.  Based on prior grant usage, Staff recommend applying for $14,000 in grant funds, which will require a $2,800 dollar match from the City of Ramsey if awarded that amount.

Grant criteria remain unchanged: rebate applicants must be a municipal water customer; rebates are only applicable to replacement devices (it does not cover new construction); and at least a portion of the cost must be paid by the rebate applicant (this is accomplished by having the applicant be responsible for the sales tax).  Eligible devices continue to include WaterSense certified irrigation controllers, toilets, shower heads, irrigation system audits, and Energy Star® certified dishwashers and washing machines. The only new product eligible for a rebate this upcoming grant cycle is a WaterSense certified faucet or faucet accessory.

Through the current grant program and resident participation, it is estimated that there's been water savings of 849,500 gallons. This is based on the estimated average annual water savings from replacing older, inefficient devices with grant-eligible products, the total number of participants (to date, 73), and the devices that have been replaced.

The City currently has $968.24 in grant funds remaining in the current cycle.  Staff view this program as a great opportunity for all municipal water customers in the community.  Staff have utilized the website, newsletter, social media, the Weekly Update, and the dynamic display sign on Highway 10 to promote the rebate program and would continue to do so should the city be successful with its 2026-2028 grant application.  

The amount of grant funding requested reflects both resident usage and the historical award amounts provided to the City of Ramsey.

This rebate opportunity has been well received and utilized by Ramsey residents, and staff recommend submitting a grant application for the next grant cycle.
 

Funding for the Water Efficiency Grant Program would consist of three sources: the grant award from the Metropolitan Council (assuming the City of Ramsey is selected as a grant recipient), the City’s required 20% match from the Water Fund, and the rebate participant’s contribution, which includes paying the sales tax on the device and any amount that exceeds the per?device cap.

Motion to adopt Resolution #26-092 authorizing Staff to submit an application for grant funds through the Metropolitan Council's Water Efficiency Grant Program.