Purpose

• Authorizes state funding through bonds to support flood hazard mitigation projects in the Red River Basin. The goal is to prevent or reduce flood damage for publicly owned facilities and to enhance natural resources.

Main Provisions

• Appropriation of 35,000,000 from the bond proceeds fund to the commissioner of natural resources for the state share of flood hazard mitigation grants for publicly owned capital improvements, under Minnesota law, and to improve natural resources.
• Special exception for the Red River Basin: for projects consistent with the 1998 mediation agreement and approved by the Red River flood damage reduction work group, grants may cover up to 75% of the project cost. This is an allowance that overrides the usual rules in Minnesota Statutes 103F.161 subdivision 2.
• Specific funded projects and amounts:
  • Bois de Sioux Watershed District: 13,748,000 for the Mustinka River Rehabilitation Redpath Impoundment Project.
  • Two Rivers Watershed District: 21,752,000 for final engineering, permitting, land acquisition, and construction of Phases 1–3 of the Klondike Clean Water Retention Project.
  • Roseau River Watershed District: 4,000,000 for the Roseau Lake Rehabilitation Project.
• Local match criteria: The project includes all local flood-related activities to determine any local match required.
• Local share threshold: If the project cost exceeds 2% of the municipality’s median household income multiplied by the number of households in the municipality, the appropriation also covers the local share of the project.
• Bond sale: The commissioner of management and budget shall sell and issue bonds up to 35,000,000 in the manner and terms set by applicable statutes and the state constitution.

Changes to Existing Law

• Allows up to a 75% state grant for Red River Basin flood hazard mitigation projects under the 1998 mediation agreement, which is higher than the standard grant share under current law when approved by the Red River work group.

Implementation and Administration

• Funding is channeled through the Department of Natural Resources for the state share of grants.
• Projects must be publicly owned capital improvements designed to prevent or reduce flood damage and to improve natural resources.
• Standard bond financing procedures apply, including oversight by the Department of Management and Budget.

Overall Impact

• Expands state participation in funding flood hazard mitigation in the Red River Basin.
• Accelerates three large-scale projects by providing substantial state funds and the potential for higher state cost-sharing.
• Establishes local-match rules to determine local contribution requirements, potentially reducing local financial barriers for participation.

Relevant Terms - flood hazard mitigation - Red River Basin - Bois de Sioux Watershed District - Mustinka River Rehabilitation Redpath Impoundment Project - Two Rivers Watershed District - Klondike Clean Water Retention Project - Roseau River Watershed District - Roseau Lake Rehabilitation Project - local match - median household income - municipal households - bond proceeds fund - state share - publicly owned capital improvements - 1998 mediation agreement - Red River flood damage reduction work group - Minnesota Statutes 103F.161 - bond sale - management and budget (commissioner)