HF 1510

as introduced - 91st Legislature (2019 - 2020) Posted on 02/21/2019 02:06pm

A bill for an act
relating to transportation; modifying Metropolitan Council financial reporting
requirements; requiring reporting; amending Minnesota Statutes 2018, sections
3.972, subdivision 4; 473.13, by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 3.972, subdivision 4, is amended to read:

Subd. 4.

Certain transit financial activity reporting.

(a) The legislative auditor must
perform a transit financial activity review of financial information for the Metropolitan
Council's Transportation Division deleted text begin and the joint powers board under section 297A.992.
Within 14 days of the end of each fiscal quarter, deleted text end new text begin two times each year. The first report, due
April 1, must include the quarters ending on September 30 and December 31 of the previous
calendar year. The second report, due October 1, must include the quarters ending on March
31 and June 30 of the current year. new text end The legislative auditor must submit the review to the
Legislative Audit Commission and the chairs and ranking minority members of the legislative
committees with jurisdiction over transportation policy and finance, finance, and ways and
means.

(b) At a minimum, each transit financial activity review must include:

(1) a summary of monthly financial statements, including balance sheets and operating
statements, that shows income, expenditures, and fund balance;

(2) a list of any obligations and agreements entered into related to transit purposes,
whether for capital or operating, including but not limited to bonds, notes, grants, and future
funding commitments;

(3) the amount of funds in clause (2) that has been committed;

(4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
and fund balance compared to expenditures, taking into account:

(i) all expenditure commitments;

(ii) cash flow;

(iii) sufficiency of estimated funds; and

(iv) financial solvency of anticipated transit projects; and

(5) a notification concerning whether the requirements under paragraph (c) have been
met.

(c) The Metropolitan Council deleted text begin and the joint powers board under section 297A.992 deleted text end must
produce monthly financial statements as necessary for the review under paragraph (b),
clause (1), and provide timely information as requested by the legislative auditor.

new text begin (d) This subdivision expires on April 15, 2024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 473.13, is amended by adding a subdivision to
read:

new text begin Subd. 1d. new text end

new text begin Budget changes or variances; reports. new text end

new text begin At least quarterly by January 1, April
1, July 1, and October 1, the council must submit a summary to the chairs and ranking
minority members of the legislative committees with jurisdiction over transportation policy
and finance and to the Legislative Commission on Metropolitan Government on any changes
to or variances from the budget adopted under subdivision 1.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective June 1, 2019, and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2018, section 473.13, is amended by adding a subdivision to
read:

new text begin Subd. 6. new text end

new text begin Overview of revenues and expenditures; forecast. new text end

new text begin (a) In cooperation with
the Department of Management and Budget and in conjunction with the release of each
forecast required by section 16A.103, the council must prepare a financial overview and
forecast of revenues and expenditures for the transportation components of the council's
budget.
new text end

new text begin (b) At a minimum, the financial overview and forecast must identify:
new text end

new text begin (1) actual revenues, expenditures, transfers, reserves, and balances for each of the previous
four budget years;
new text end

new text begin (2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances
for each year within the state forecast period; and
new text end

new text begin (3) a comparison of the information under clause (2) to the prior forecast, including any
changes made.
new text end

new text begin (c) The information under paragraph (b), clauses (1) and (2), must include:
new text end

new text begin (1) a breakdown for each transportation operating budget category established by the
council, including but not limited to bus, light rail transit, commuter rail, planning, special
transportation service under section 473.386, and assistance to replacement service providers
under section 473.388;
new text end

new text begin (2) data for both transportation operating and capital expenditures; and
new text end

new text begin (3) fund balances for each replacement service provider under section 473.388.
new text end

new text begin (d) The financial overview and forecast must summarize reserve policies, identify the
methodology for cost allocation, and review revenue assumptions and variables affecting
the assumptions.
new text end

new text begin (e) The council must review the financial overview and forecast information with the
chairs, ranking minority members, and staff of the legislative committees with jurisdiction
over finance, ways and means, and transportation finance no later than two weeks following
the release of the forecast.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective June 1, 2019, and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end