SF533

Purpose

• The bill authorizes state funding to improve Greenfield Road in the city of Greenfield. It provides a grant to the city for design, engineering, construction, and reconstruction of the road from U.S. Highway 55 to County State-Aid Highway 10 Woodland Trail, along with related stormwater improvements.
• The funding comes from the bond proceeds account in the state transportation fund and is financed by issuing state bonds.

Main Provisions

• Subdivision 1 – Appropriation:
  • Appropriates $1,392,000 from the bond proceeds account in the state transportation fund to the commissioner of transportation.
  • The money is for a grant to the city of Greenfield to design, engineer, construct, and reconstruct Greenfield Road as a paved road, plus associated stormwater improvements.
  • This appropriation is in addition to a prior state funding (Laws 2023, chapter 72, article 2, section 7, subdivision 9) and does not require any nonstate (local) contribution.
• Subdivision 2 – Bond Sale:
  • The commissioner of management and budget must issue bonds up to $1,392,000 to fund the appropriation.
  • The bonds are issued under applicable Minnesota statutes and the state constitution.
  • Bond proceeds, excluding accrued interest and any bond sale premium, must be credited to the bond proceeds account in the state transportation fund.

Funding and Bonding Details

• Source of funds: bond proceeds account in the state transportation fund.
• Financing method: sale of state bonds up to $1,392,000.
• Allocation of bond proceeds: proceeds (excluding interest and premium) go to the bond proceeds account; used for the Greenfield Road improvements.

Relation to Existing Law

• References and relies on Minnesota statutes and constitutional provisions governing bond issuance (Minnesota Statutes sections 16A.631 to 16A.675 and Minnesota Constitution article XI sections 4–7).
• Expands on prior approved funding (the 2023 law mentioned) without requiring a local matching contribution.

Project Scope and Location

• Road: Greenfield Road.
• Location: City of Greenfield.
• Extent: From U.S. Highway 55 to County State-Aid Highway 10 Woodland Trail.
• Improvements: Paving, design/engineering/construction/reconstruction, and stormwater improvements.

Significance and Impact

• Accelerates transportation infrastructure improvement in Greenfield.
• Uses state debt financing to fund the project with no required local match.
• Adds to previously approved state funding for the project.

Potential Oversight/Administration

• Oversight and administration by the commissioner of transportation for grant administration.
• Bond issuance managed by the commissioner of management and budget in accordance with state law.

Relevant Terms - Greenfield Road, Greenfield, U.S. Highway 55, County State-Aid Highway 10 Woodland Trail - stormwater improvements - grant to the city of Greenfield - appropriation, bond proceeds account, state transportation fund - bonds, bond sale, commissioner of transportation, commissioner of management and budget - Minnesota Statutes 16A.631-16A.675, Minnesota Constitution article XI (sections 4-7) - Laws 2023 chapter 72 article 2 section 7 subdivision 9 - paved road, design, engineer, construct, reconstruct - nonstate contribution (local match)