Adopt Resolution #24-092 Authorizing Staff to Apply for Water Efficiency Grant Funding through the Metropolitan Council 

In 2022, the City of Ramsey re-applied for a Water Efficiency Grant through the Metropolitan Council and was awarded $19,800.  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 a little less then $1,000 in grant funds remaining (this current grant cycle runs through June 30, 2024, 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 March 29, 2024, and grant recipients will be announced by May 24, 2024.  The grant program will run from July 1, 2024, through June 30, 2026, which means that if Ramsey was successful in being awarded a new grant, there would be no gap in the water efficiency rebate program.

The current grant program runs through June 30, 2024.  If the City were to apply for the next round of funding and was successful, there would be no gap in program funding.  The Metropolitan Council will continue to contribute eighty percent (80%) of program costs, which means the City's required matching component is only twenty percent (20%).  The minimum grant amount is $5,000 and the maximum amount is $50,000.

Grant criteria remain the same: 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 and toilets, 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 showerhead.

Through the current grant program and participation by residents, it is estimated that there's been water savings of nearly 1,000,000 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, 91), and the devices that have been replaced.

The City has slightly less than $1,000 in grant funds remaining in the current grant cycle.  Staff sees 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 2024-2026 grant application.  

This rebate opportunity has been well received and utilized by Ramsey residents and Staff would recommend submitting a grant application for the next grant cycle.  The Environmental Policy Board reviewed this information at their March 18, 2024, meeting and recommended that the City submit a grant application for the upcoming grant cycle again.

 

Funding for the Water Efficiency Grant Program would consist of three sources: Grant award from the Metropolitan Council (assuming Ramsey was a grant recipient), the City's required 20% match would come from the City's Water Fund, and any rebate participant would cover the sales tax on the purchase of the device (thus satisfying the requirement for the rebate participant to have a financial contribution in the program) plus any amount that exceeds the per device cap.

Motion to adopt Resolution #24-092 authorizing Staff to submit an application for grant funds through the Metropolitan Council's Water Efficiency Grant Program.