In Fiscal Year 2008, Federal funding was provided to begin construction of the Montevideo, Minn., flood risk management project. The project cooperation agreement was executed in August 2007 and the Stage 1 construction contract was awarded in September 2008. The Stage 2 construction contract was awarded in September 2010. To complete the project, a third stage of construction will be needed at full expense to the non-Federal sponsor, the city of Montevideo. Stage 3 will be split into two contracts. The total Federal project costs are limited to $7 million and have been expended.