SF2015

Purpose

• This bill aims to fund flood mitigation projects in the city of Moorhead, Clay County, and the Buffalo-Red River Watershed District by appropriating money and authorizing state bonds. The goal is to prevent or reduce flood damage through publicly owned capital improvements and to support the local communities in paying their share when required.

Main Provisions

• Appropriation (Subd.1):
  • Authorizes an appropriation of 60,400,000 from the bond proceeds fund to the commissioner of natural resources.
  • This money covers the state share of flood hazard mitigation grants for publicly owned capital improvements to prevent or alleviate flood damage, under Minnesota Statutes section 103F.161, for projects in Moorhead, Clay County, and the Buffalo-Red River Watershed District.
  • If the cost of a project would require a local share that exceeds a calculation of two percent of the municipality’s median household income multiplied by the number of households, this appropriation also covers the local share of the project (i.e., the appropriation can help fund the local portion when the project cost is high relative to local income/household measures).
• Bond Sale (Subd.2):
  • Directs the commissioner of management and budget to sell and issue state bonds up to 60,400,000 to finance the appropriation.
  • Bond issuance will follow the terms and procedures of Minnesota Statutes sections 16A.631 to 16A.675 and the Minnesota Constitution, Article XI, sections 4 to 7.

Significant Changes to Existing Law

• Creates or expands a funding mechanism for flood hazard mitigation by establishing a dedicated appropriation and authorizing up to 60.4 million in state bonds to finance grants for publicly owned capital improvements in the specified areas.
• Reiterates and applies the existing flood mitigation program under Minnesota Statutes section 103F.161 to Moorhead, Clay County, and the Buffalo-Red River Watershed District.
• Introduces a specific local-share threshold rule: the appropriation can also cover the local share if project costs would exceed two percent of the area’s median household income times the number of households, linking project funding to local income/household metrics.

Potential Implications (Overview)

• Increases funding for flood risk reduction projects, which could reduce flood damage and support community resilience.
• Involves issuing state bonds, which affects state debt and repayment obligations over time.
• Aligns local financial responsibility for flood control with Income/household-based thresholds, tying funding to local economic measures.

Relevant Terms - flood mitigation - flood hazard mitigation grants - publicly owned capital improvements - Moorhead - Clay County - Buffalo-Red River Watershed District - bond proceeds fund - state share - local share - median household income - households - two percent threshold - Minnesota Statutes section 103F.161 - bond sale / bonds - Minnesota Statutes sections 16A.631 to 16A.675 - Minnesota Constitution Article XI