SF5238

Purpose

This bill funds a local recreation project by allocating state money to build a recreational trail along a stretch of marked U.S. Highway 2 in Warba, Itasca County. It also authorizes the sale of state bonds to pay for this project.

Main Provisions

• Appropriation of 275,000 from the bond proceeds fund to the commissioner of transportation. The money is for a grant to Itasca County to construct a recreational trail along marked U.S. Highway 2 from 1st Avenue North to Itasca County Road 426 in the city of Warba.
• Bond sale authorization. The commissioner of management and budget must sell and issue state bonds up to 275,000 to fund the appropriation, under the terms of Minnesota law (Minnesota Statutes sections 16A.631 to 16A.675) and the Minnesota Constitution (Article XI, sections 4 to 7).

Funding and Process

• Source of funds: bond proceeds fund.
• Financial mechanism: state bonds will be issued to provide the money for the grant.
• Implementing agencies: department of transportation will administer the grant to Itasca County; the department of management and budget oversees the bond sale.

Significance and Impacts

• This is a targeted capital investment project focused on creating a recreational trail along a specific highway segment in Warba.
• It represents a shift of state debt to finance a local infrastructure/ recreational amenity in Itasca County.
• The project scope is limited to the described trail segment and uses traditional bond financing aligned with state statutes and constitutional provisions.

Significant Changes to Law (as proposed)

• Establishes or formalizes a new appropriation and bond issuance for a specific local trail project.
• Directs the bond sale process to fund the grant to a county for a designated trail construction project.

Context and Key Terms

• Itasca County; Warba; U.S. Highway 2; 1st Avenue North; Itasca County Road 426.
• Recreational trail; grant; appropriation; bond proceeds fund; bonds; sale and issuance; Commissioner of Transportation; Commissioner of Management and Budget.
• Minnesota Statutes 16A.631 to 16A.675; Minnesota Constitution Article XI sections 4 to 7.

Relevant Terms Itasca County Warba U.S. Highway 2 recreational trail grant appropriation bond proceeds fund bonds sale and issuance Commissioner of Transportation Commissioner of Management and Budget Minnesota Statutes 16A.631 to 16A.675 Minnesota Constitution Article XI sections 4 to 7 1st Avenue North Itasca County Road 426