Purpose

This bill is a capital investment measure that authorizes state bonds to fund flood hazard mitigation projects in the Red River Basin. It aims to protect communities from flood damage and enhance natural resources by supporting publicly owned capital improvements.

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 Statutes section 103F.161, subdivision 3), and
  • projects that help enhance natural resources.
• Grant percent flexibility: Notwithstanding a rule in Minnesota Statutes 103F.161, subdivision 2, a grant for a Red River Basin flood hazard mitigation project may cover up to 75 percent of the project cost if it aligns with the 1998 mediation agreement and is approved by the Red River flood damage reduction work group.
• Specific grant awards:
  • Bois de Sioux Watershed District: $13,748,000 for the Mustinka River Rehabilitation – Redpath Impoundment Project.
  • Two Rivers Watershed District: $17,252,000 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 matching requirements:
  • For determining any required local match, the project includes all local flood-related activities.
  • If the project cost exceeds 2 percent 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 issuance:
  • The Commissioner of Management and Budget is directed to sell and issue bonds of up to 35,000,000 using standard bond statutes and constitutional authority (Minnesota Statutes 16A.631 to 16A.675 and Article XI, sections 4–7 of the Minnesota Constitution).

Significant changes to existing law

• The bill temporarily relaxes the usual grant cap by allowing up to 75 percent of project costs for eligible Red River Basin projects (instead of a stricter current limit), in line with the 1998 mediation agreement and approval by the Red River work group.
• It updates the local match framework by explicitly counting all local flood-related activities toward the match and by setting a threshold (2% of median household income times households) above which the state would cover the local share.
• It authorizes a specific bond sale amount (up to 35,000,000) to fund these grants, tying funding to bond proceeds rather than ongoing general appropriations.

Relevant Terms - Red River Basin - flood hazard mitigation - bond proceeds fund - public capital improvements - 75 percent grant (up to 75%) - 1998 mediation agreement - Red River flood damage reduction work group - 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 - households - bond sale / Minnesota bond statutes (16A.631 to 16A.675)