HF 2204

as introduced - 94th Legislature (2025 - 2026) Posted on 03/12/2025 11:38am

A bill for an act
relating to Metropolitan Council; consolidating and modifying certain financial
reporting requirements for transportation services; amending Minnesota Statutes
2024, sections 473.13, subdivisions 1, 6; 473.386, subdivision 10; 473.412,
subdivision 3; repealing Minnesota Statutes 2024, section 473.452.

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

Section 1.

Minnesota Statutes 2024, section 473.13, subdivision 1, is amended to read:

Subdivision 1.

Budget.

(a) On or before December 20 of each year, the council shall
adopt a final budget covering its anticipated receipts and disbursements for the ensuing year
and shall decide upon the total amount necessary to be raised from ad valorem tax levies
to meet its budget. The budget shall state in detail the expenditures for each program to be
undertaken, including the expenses for salaries, consultant services, overhead, travel, printing,
and other items. The budget shall state in detail the capital expenditures of the council for
the budget year, based on a five-year capital program adopted by the council and transmitted
to the legislature. After adoption of the budget and no later than five working days after
December 20, the council shall certify to the auditor of each metropolitan county the share
of the tax to be levied within that county, which must be an amount bearing the same
proportion to the total levy agreed on by the council as the net tax capacity of the county
bears to the net tax capacity of the metropolitan area. The maximum amount of any levy
made for the purpose of this chapter may not exceed the limits set by the statute authorizing
the levy.

deleted text begin (b) Each even-numbered year the council shall prepare for its transit programs a financial
plan for the succeeding three calendar years, in half-year segments. The financial plan must
contain schedules of user charges and any changes in user charges planned or anticipated
by the council during the period of the plan. The financial plan must contain a proposed
request for state financial assistance for the succeeding biennium.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end In addition, the budget must show for each year:

(1) the estimated operating revenues from all sources including funds on hand at the
beginning of the year, and estimated expenditures for costs of operation, administration,
maintenance, and debt service;

(2) capital improvement funds estimated to be on hand at the beginning of the year and
estimated to be received during the year from all sources and estimated cost of capital
improvements to be paid out or expended during the year, all in such detail and form as the
council may prescribe; and

(3) the estimated source and use of pass-through funds.

Sec. 2.

Minnesota Statutes 2024, section 473.13, subdivision 6, is amended to read:

Subd. 6.

Transportation financial review.

(a) Annually by January 15, the council
must submit a financial review that details revenue and expenditures for the transportation
components under the council's budget, as specified in paragraph (c). A financial review
submitted under this paragraph must provide the information using state fiscal years.

(b) Annually by the earlier of the accounting close of a budget year or August 15, the
council must submit a financial review update that provides the following for the most
recent completed budget year: actual revenues; expenditures; transfers; reserves; balances;
and a comparison between the budgeted and actual amounts. A financial review update
under this paragraph must include the information specified in paragraph (d).

(c) At a minimum, a financial review must identify:

(1) the actual revenues, expenditures, transfers, reserves, and balances in each of the
previous four years;

(2) budgeted and forecasted revenues, expenditures, transfers, reserves, and balances in
the current year and each year within the state forecast period;

(3) for the most recent completed year, a comparison between the budgeted and actual
amounts under clause (1); and

(4) for the most recent completed year, fund balances for each replacement service
provider under section 473.388. new text begin By December 15 each year, each replacement service
provider under section 473.388 must report to the council its projected total operating
expenditures and projected operating reserve fund balance as of the previous December 31.
new text end

(d) The information under paragraph (c), clauses (1) to (3), must include:

(1) a breakdown by each transportation funding source identified by the council, including
but not limited to legislative appropriations; federal funds; fare collections; property tax;
and sales tax, including sales tax used for active transportation under section 473.4465,
subdivision 2, paragraph (a), clause (1);

(2) a breakdown by 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; and

(3) data for operations, capital maintenance, and transit capital.

(e) A financial review under paragraph (a) or (b) must provide information or a
methodology sufficient to establish a conversion between state fiscal years and budget years,
summarize reserve policies, identify the methodology for cost allocation, and describe
revenue assumptions and variables affecting the assumptions.

(f) The council must submit each financial review to the chairs and ranking minority
members of the legislative committees and divisions with jurisdiction over transportation
policy and finance and to the commissioner of management and budget.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

Sec. 3.

Minnesota Statutes 2024, section 473.386, subdivision 10, is amended to read:

Subd. 10.

Forecasted funding.

(a) For purposes of this subdivision, "biennium" and
"fiscal year" have the meanings given in section 16A.011, subdivisions 6 and 14, respectively.

(b) In each February and November forecast of state revenues and expenditures under
section 16A.103, the commissioner of management and budget must incorporate a state
obligation from the general fund for the annual net costs to the council to implement the
special transportation service under this section. Notwithstanding section 16A.11, subdivision
3, the appropriation base in each fiscal year of the upcoming biennium is as determined in
this subdivision.

(c) The commissioner must determine net costs under paragraph (b) as:

(1) the amount necessary to:

(i) maintain service levels accounting for expected demand, including service area, hours
of service, ride scheduling requirements, and fares per council policy;

(ii) maintain the general existing condition of the special transportation service bus fleet,
including bus maintenance and replacement; and

(iii) meet the requirements of this section; plus

(2) the amount of forecast adjustments, as determined by the commissioner of
management and budget in consultation with the council, necessary to match (i) actual
special transportation service program costs in the prior fiscal year, and (ii) adjusted program
costs forecasted for the second year of the current biennium, for a forecast prepared in the
first year of the biennium; less

(3) funds identified for the special transportation service from nonstate sources.

(d) In conjunction with each February and November forecast, the council must submit
a financial review of the special transportation service to the chairs and ranking minority
members of the legislative committees with jurisdiction over transportation policy and
finance and to the commissioner of management and budget. At a minimum, the financial
review must include:

(1) a summary of special transportation service sources of funds deleted text begin and expenditures for
the prior two fiscal years and deleted text end each fiscal year of the forecast period, which must include:

(i) a breakout by expenditures categories; and

(ii) information that is sufficient to identify a conversion between state fiscal years and
the fiscal years of the council;

(2) details on cost assumptions used in the forecast;

(3) information on ridership and farebox recovery rates for the prior two fiscal years
and each fiscal year of the forecast period;

(4) identification of the amount of appropriations necessary for any forecast adjustments
as identified under paragraph (c), clause (2); and

(5) information as prescribed by the commissioner.

Sec. 4.

Minnesota Statutes 2024, section 473.412, subdivision 3, is amended to read:

Subd. 3.

Report required; cleaning standards and expenditures.

(a) deleted text begin By October 1,
2024, and every year thereafter, deleted text end new text begin Annually by February 15, new text end the Metropolitan Council must
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over transit policy and finance on transit cleanliness and the ridership experience.

(b) The report under paragraph (a) must provide information on the council's cleanliness
standards required under subdivision 2, including whether the council adopted new
cleanliness standards or revisions to current cleanliness standards. A report prepared under
this subdivision must include information gathered from the required public feedback on
cleanliness and rider experience required in subdivision 2, paragraph (b). The council must
consider and recommend revisions to cleanliness standards based on the collection of public
feedback and must summarize feedback received by the council in the report.

(c) A report submitted under this subdivision must include:

(1) the total expenditures for cleaning and repairing transit stations and transit vehicles;

(2) the frequency, type, and location of repairs;

(3) whether specific transit stations needed a higher proportion of cleaning or repairs
and detail the council's strategy to resolve identified and persistent concerns at those
locations;

(4) recommendations to address workforce challenges for the implementation and
maintenance of cleanliness and repair standards adopted by the council, including whether
the council maintained agreements with third-party services for cleaning and repair; new text begin and
new text end

(5) whether the council has adopted preventative measures against vandalism or graffiti deleted text begin ;
and deleted text end new text begin .
new text end

deleted text begin (6) any recommendations for additions to the transit rider code of conduct under section
473.4065 or the transit rider investment program under section 473.4075.
deleted text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 473.452, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-00265

473.452 TRANSIT OPERATING RESERVES; REPORT.

(a) By December 15 each year, each replacement service provider under section 473.388 must report to the council its projected total operating expenses for the current state fiscal year and its projected operating reserve fund balance as of the previous July 31.

(b) By January 15 each year, the council must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over transportation policy and finance. The report must include:

(1) the information from each provider received under paragraph (a); and

(2) the council's projected total operating expenses for the current state fiscal year and its projected operating reserve fund balance as of the previous July 31.