By 1977, the City of Kinney, with a population of 325 according to the 1970 census, suffered from a failing water system, and was faced with a staggering replacement cost of $186,000. After numerous unsuccessful attempts to secure funding from state and federal agencies due to bureaucratic red tape, agencies such as: Department of Housing and Urban Development (HUD), the Federal Housing Authority (FHA), and the Iron Range Resources and Rehabilitation Commission (IRRRC), the city council was led to believe that it would be easier to receive foreign aid if Kinney seceded from the union, declared war, and lost immediately. Mayor Mary Anderson and a supportive Kinney City Council sent the following July 13, 1977, 'tongue-in-cheek' secession letter to U.S. Secretary of State Cyrus Vance: