HF 2863

as introduced - 87th Legislature (2011 - 2012) Posted on 03/19/2012 01:56pm

A bill for an act
relating to metropolitan government; adding duties to the Legislative
Commission on Metropolitan Government; providing for fiscal year starting July
1 for the Metropolitan Council; requiring legislative approval of the council's
budgets; amending Minnesota Statutes 2010, sections 3.8841, subdivisions 7, 8;
473.13, subdivision 1; 473.535.

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

Section 1.

Minnesota Statutes 2010, section 3.8841, subdivision 7, is amended to read:

Subd. 7.

Meetings; procedures.

The commission meets at the call of the chair.
new text begin The commission shall meet at least once per calendar year. new text end If there is a quorum, the
commission may take action by a simple majority vote of commission members present.

Sec. 2.

Minnesota Statutes 2010, section 3.8841, subdivision 8, is amended to read:

Subd. 8.

Powers; duties; Metropolitan Council levy, budget oversight.

new text begin (a) new text end The
commission must monitor, review, and make recommendations to the Metropolitan
Council and to the legislature new text begin by February 1 of each year new text end for the following deleted text begin calendar deleted text end new text begin fiscal
new text end year new text begin . The recommendations shall be new text end on:

(1) the tax rate and dollar amount of the Metropolitan Council's property tax levies
and any proposed increases in the rate or dollar amount of tax;

(2) any request for an increase in the debt of the Metropolitan Council;

(3) the overall work and role of the Metropolitan Council;

(4) the Metropolitan Council's proposed operating and capital budgets, work
program, and capital improvement program; and

(5) the Metropolitan Council's implementation of the operating and capital budgets,
work program, and capital improvement program.

new text begin (b) After a final budget is enacted for a fiscal year, the commission shall review an
increase in expenditures from the council's enacted budget pursuant to this subdivision. If
the council will increase expenditures from its enacted budget by more than five percent,
the chair of the council shall notify the members of the commission in writing of the
anticipated increase. The notice shall include information on the need for the increase, the
source of the funds to pay for the increase, and a reason that the need was not included
in the enacted budget. The commission has 20 days to review the notice. If after 20
days there is no request for further review, the increase is deemed to be recommended
by the commission. If within 20 days any member of the commission requests further
review, the commission must hold a hearing pursuant to paragraph (c) to consider the
issue. The council shall not spend the additional funds until the request for a hearing
has been satisfied or withdrawn.
new text end

new text begin (c) If there is a request for further review under paragraph (b), the commission shall
hold a hearing within 20 days of receiving the request. At the hearing, the commission
shall make a positive or negative recommendation on the increased expenditure. The
recommendation is advisory only.
new text end

new text begin (d) Within seven calendar days of the start of the legislative session each year, the
chair of the commission must submit a written report to the legislature on all increased
expenditure requests that were received by the commission for the past year and what
recommendation, if any, was made.
new text end

Sec. 3.

Minnesota Statutes 2010, section 473.13, subdivision 1, is amended to read:

Subdivision 1.

Budget.

(a) On or before deleted text begin December 20 deleted text end new text begin January 15 new text end of each year, the
council shall deleted text begin adopt a final deleted text end new text begin present a proposed new text end budget deleted text begin covering its deleted text end new text begin to committees in the
senate and house of representatives with jurisdiction over the Metropolitan Council.
The proposed budget must cover the council's new text end anticipated receipts and disbursements
for the deleted text begin ensuing deleted text end new text begin next fiscal new text end year new text begin commencing July 1 new text end and deleted text begin shall decide upon the total deleted text end new text begin the
proposed new text end amount necessary to be raised from ad valorem tax levies to meet its budget. The
new text begin proposed new text end 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 new text begin proposed new text end budget shall state in detail the capital expenditures of the
council for the deleted text begin budget deleted text end new text begin fiscal new text end year, based on a five-year capital program adopted by the
council and transmitted to the legislature. deleted text begin After adoption of the budget and deleted text end new text begin The council
cannot adopt a final budget until a law authorizing the council's budget is enacted. In any
year in which a law is not enacted to authorize the council's budget, the council may
continue to operate and implement its previously approved budget, but at no greater level
than previously authorized by the legislature.
new text end

new text begin (b) new text end No later than five working days after deleted text begin December 20 deleted text end new text begin the council's budget is
enacted new text end , 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.

new text begin (c) The council may vary from its enacted budget by increased expenditures of up
to five percent without legislative action. If the council's expenditures will increase by
more than five percent from the enacted budget, it must submit notice to the Legislative
Commission on Metropolitan Government, as provided in section 3.8841, subdivision 8.
new text end

deleted text begin (b) deleted text end new text begin (d) In new text end each new text begin fiscal year starting in an new text end even-numbered year the council shall prepare
for its transit programs a financial plan for the succeeding three deleted text begin calendar deleted text end new text begin fiscal new text end 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 begin (c) deleted text end new text begin (e) new text end In addition, the new text begin proposed new text end budget must show for each new text begin fiscal new text end year:

(1) the estimated operating revenues from all sources including funds on hand
at the beginning of the new text begin fiscal new text end 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 new text begin fiscal
new text end 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 new text begin fiscal new text end year, all in such detail
and form as the council may prescribe; and

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

Sec. 4.

Minnesota Statutes 2010, section 473.535, is amended to read:

473.535 CAPITAL IMPROVEMENT PROGRAM; BUDGET.

new text begin (a) In addition to the proposed budget bill submitted for legislative action
under section 473.13, subdivision 1, new text end the council shall deleted text begin prepare and adopt a deleted text end new text begin present to
the committees in the senate and house of representatives with jurisdiction over the
Metropolitan Council the council's proposed new text end capital improvement program and a budget
for the acquisition or betterment of any interceptors or treatment works determined by
the council to be necessary or desirable for the metropolitan disposal system. When the
council issues debt under section 473.541, it must be for the projects identified in the
adopted capital improvement program and budget.

new text begin (b) The council cannot adopt a final capital improvement budget until the budget
is enacted. In any year in which a law is not enacted to authorize the council's capital
improvement budget, the council may continue to operate and implement its previously
approved capital improvement budget, but at no greater level than previously authorized
by the legislature.
new text end

new text begin (c) The council may vary from its enacted budget by increased expenditures of up
to five percent without legislative action. If the council's expenditures will increase by
more than five percent from the enacted budget, it must submit notice to the Legislative
Commission on Metropolitan Government, as provided in section 3.8841, subdivision 8.
new text end

Sec. 5. new text begin METROPOLITAN COUNCIL; TRANSITIONAL BUDGET.
new text end

new text begin By July 1, 2013, the Metropolitan Council shall prepare a detailed six-month budget
for the period of January 1, 2014, to June 30, 2014. Thereafter, the council shall prepare
annual budgets with each fiscal year commencing July 1, and ending June 30. The council
must submit by January 15, 2014, a detailed budget for the fiscal year beginning July 1,
2014, to the legislature for approval consistent with Minnesota Statutes, sections 473.13
and 473.535.
new text end