Minnesota Legislature
HF 633
as introduced - 89th Legislature (2015 - 2016) Posted on 02/05/2015 01:55pm
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A bill for an act
relating to local government; establishing a grant program to finance public
infrastructure for cities using a portion of the city local government aid program
to fund the grants; amending Minnesota Statutes 2014, sections 477A.013,
subdivisions 8, 9, by adding a subdivision; 477A.03, subdivision 2a; proposing
coding for new law in Minnesota Statutes, chapter 116J.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[116J.432] LOCAL GOVERNMENT AID INFRASTRUCTURE
CAPITAL PROJECT GRANT PROGRAM.
new text end
new text begin Subdivision 1. new text end
new text begin Account. new text end
new text begin
A local government aid (LGA) infrastructure capital
project grant program account is created in the special revenue fund. Money in the account
is annually appropriated to the commissioner of employment and economic development
to award grants under this section and does not lapse.
new text end
new text begin Subd. 2. new text end
new text begin Definitions. new text end
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For the purposes of this section, the following terms have
the meanings given them:
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(1) "city" means a statutory or home rule charter city; and
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(2) "project" means capital improvement of:
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(i) a street and related curbs, gutters, and sidewalks;
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(ii) a wastewater collection and treatment system;
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(iii) a stormwater handling system;
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(iv) a drinking water supply, treatment, and distribution system; or
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(v) a combination of any of items (i) to (iv).
new text end
new text begin Subd. 3. new text end
new text begin Grants; amount. new text end
new text begin
A city may apply in the manner and at the times
determined by the commissioner for one or more grants for one or more projects. A grant
may be for up to 100 percent of a project's costs. There is no maximum grant amount.
new text end
new text begin Subd. 4. new text end
new text begin Eligible costs. new text end
new text begin
A grant awarded under this section may be used for one
or more of the following purposes: feasibility studies, predesign, design, preliminary
engineering, engineering, acquisition of land or an interest in land, acquisition of
materials and supplies, improvement, renovation, construction, installation, furnishing
and equipping, and associated and necessary costs for completion of the project. Ongoing
operation costs and maintenance and repairs are not eligible for grant funding.
new text end
new text begin Subd. 5. new text end
new text begin Review and approval. new text end
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The commissioner must establish criteria and
review procedures to ensure a project is technically and financially feasible and, in the
opinion of the commissioner, reasonably related to the state purposes and goals of the city
in applying for a grant to implement the project. The city must provide evidence that the
city will be able to operate and maintain the project once completed. The commissioner
must consult with the Public Facilities Authority, the commissioner of transportation, and
representatives of city organizations in developing the criteria.
new text end
new text begin Subd. 6. new text end
new text begin Priorities. new text end
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(a) The grant application review and approval procedures
established by the commissioner must provide that projects are funded in the following
order of priority:
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(1) comprehensive, multifaceted projects that are designed, engineered, and
implemented as one project to take advantage of cost efficiencies, whether proposed by an
individual city or in cooperation with other governmental units;
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(2) single-purpose projects; and
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(3) projects proposed jointly by two or more cities, or a city and one or more other
local units of government, to implement a joint project.
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new text begin Subd. 7. new text end
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Cancellation of grant; return of grant money; available for other
grants.
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If five years after the execution of a grant agreement the commissioner determines
that a project has not proceeded in a timely manner and is unlikely to be completed, the
commissioner must cancel the grant and require the grantee to return all grant money
awarded for that project. Grant money returned to the commissioner is appropriated to the
commissioner to make additional grants under this section.
new text end
Sec. 2.
Minnesota Statutes 2014, section 477A.013, subdivision 8, is amended to read:
Subd. 8.
City formula aid.
(a) deleted text begin For aids payable in 2014 only, the formula aid for a
city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference
between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.
deleted text end
deleted text begin (b)deleted text end For aids payable in deleted text begin 2015deleted text end new text begin 2016new text end and thereafter, the formula aid for a city new text begin with a
population of less than 10,000 new text end is equal to the sum of (1) its formula aid in the previous
year and (2) the product of (i) the difference between its unmet need and its formula aid in
the previous year, and (ii) the aid gap percentage.
deleted text begin (c)deleted text end For aids payable in deleted text begin 2015deleted text end new text begin 2016new text end and thereafter, if deleted text begin a city'sdeleted text end new text begin the new text end certified aid from the
previous year new text begin for a city with a population of less than 10,000 new text end is greater than the sum of
its unmet need plus its aid adjustment under subdivision 13, its formula aid is adjusted
to equal its unmet need.
new text begin
(b) For a city with a population of 10,000 or more, its formula aid is equal to its
formula aid in the previous year.
new text end
deleted text begin (d)deleted text end new text begin (c)new text end No city may have a formula aid amount less than zero. The aid gap percentage
must be the same for all cities subject to paragraph (b).
deleted text begin (e)deleted text end new text begin (d)new text end The applicable aid gap percentage must be calculated by the Department of
Revenue so that new text begin the sum of (1) new text end the total of the aid under subdivision 9new text begin for cities with a
population of less than 10,000 and (2) the total formula aid under this subdivision plus aid
adjustments under subdivision 13 for cities with a population of 10,000 or morenew text end equals
the total amount available for aid under section 477A.03. Data used in calculating aids
to cities under sections 477A.011 to 477A.013 shall be the most recently available data
as of January 1 in the year in which the aid is calculated.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2016 and thereafter.
new text end
Sec. 3.
Minnesota Statutes 2014, section 477A.013, subdivision 9, is amended to read:
Subd. 9.
City aid distribution.
(a) In calendar year 2014 and thereafter, each city
new text begin with a population of less than 10,000 new text end shall receive an aid distribution equal to the sum of (1)
the city formula aid under subdivision 8, and (2) its aid adjustment under subdivision 13.
(b) deleted text begin For aids payable in 2014 only, the total aid for a city may not be less than the
amount it was certified to receive in 2013 plus any increase under subdivision 13.deleted text end For
aids payable in 2015 and thereafter, the total aid for a city new text begin with a population less than
10,000 new text end must not be less than the amount it was certified to receive in the previous year
minus the lesser of $10 multiplied by its population, or five percent of its net levy in the
year prior to the aid distribution.
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(c) Beginning with aids payable in 2016, a city with a population of 10,000 or more
shall receive an aid distribution equal to its aid distribution in the previous year minus the
greater of (1) 20 percent of its formula aid under subdivision 8, or (2) $10 per capita.
new text end
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(d) No city may have an aid distribution less than zero.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2016 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2014, section 477A.013, is amended by adding a
subdivision to read:
new text begin Subd. 14. new text end
new text begin Transfer of portion of city aid appropriation. new text end
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The difference between
the amount appropriated for aids and transfers in section 477A.03, subdivision 2a, and the
total aid distributed to cities under subdivision 9 shall be retained by the commissioner of
revenue to transfer to the account established in section 116J.432.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2016 and thereafter.
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Sec. 5.
Minnesota Statutes 2014, section 477A.03, subdivision 2a, is amended to read:
Subd. 2a.
Cities.
deleted text begin For aids payable in 2014, the total aid paid under section
477A.013, subdivision 9, is $507,598,012.deleted text end The total aid paid under section 477A.013,
subdivision 9new text begin , plus the amount transferred under section 477A.013, subdivision 14new text end , is
$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter, the total
aid paid under section 477A.013, subdivision 9new text begin , plus the amount transferred under section
477A.013, subdivision 14new text end , is $519,398,012.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in calendar year
2016 and thereafter.
new text end