Thought Leadership

The Impacts of Wildfire and Planning for Extreme Climate Events

By Tony Havranek​, Director of Fisheries, WSB

Wildfires are dominating headlines this summer as cities across the United States are dealing with the dangerous air conditions created by the fires in Canada. Wildfires can be incredibly scary, ushering in unwanted destruction and loss of property, but it can also be a tool for rebirth and habitat restoration.

As an ecologist, I have used controlled fire as a tool. Taking a long view of plants and wildlife, many species rely on a natural cycle of disruption that includes fire, wind, animals and more. The Jack Pine, for example, requires fire to help open its cone and release seeds. Many invasive species don’t require cycles of disruption, on the other hand, and thrive among human development.

What are the Risks that Wildfire Bring?

The clearest risk with any uncontrolled fire is destruction of life and property. Wildfires are incredibly dangerous, and this summer’s hot, dry weather helped exacerbate fires in the north. Furthermore, as climate change brings more extreme weather conditions, the carbon released from large wildfires drives further warming, feeding the cycle for more extreme weather events.

Poor forest management and extreme weather can also cause fires to burn more intensely. Too much fuel load – material in a given area that burns and can dramatically increase the intensity of a fire –means that a fire may burn faster and hotter. Intense wildfires can destroy soil to the point it is hydrophobic, repelling water instead of absorbing it. It can also destroy good bacteria and fungi in topsoil. The destruction of soil from extreme wildfires can make it more difficult for new plants to grow, cause soil erosion that pollutes streams and waterways, increase the risk of flash flooding and harm local ecosystems.

As fire crews work to fight wildfires, that can also bring some environmental risk. The flame retardant used to control the spread of fires can be toxic to certain plants and animals. And when fire crews travel from one part of the country to another to fight large wildfires, they can unintentionally introduce invasive species to new regions.

What are the Environmental Benefits?

When we read about wildfires in the news, the stories are often focused on destruction, but fire can bring environmental and ecological benefits too. Because humans have disrupted many of the natural fire cycles, burning can help reset plant species. Plants are an essential building block to ecosystems, and new plant growth can help reattract or grow the population of numerous native wildlife species. Moose, bears and deer are some of the species that can be positively impacted by regeneration after fires.

Better Planning for Fires and Other Natural Disasters.

While proper forest management and use of controlled fire helps mitigate the risk of destructive wildfires, climate change and human activity means wildfires, unfortunately could become more commonplace in certain parts of the world. Planning for and building defensible space and structures reduces risk from wildfires. Working with municipalities at WSB, we often talk about planning for flooding, erosion, hurricanes and other extreme weather events to protect infrastructure, people and native wildlife.

For communities, especially those that face a greater risk of wildfire due to climate change and other factors, assessing the threat of fire and integrating defensible space and structures into planning is critical. I expect that to become a more prevalent consideration as part of innovative municipal planning in future decades.

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Understanding Utility-Scale Solar Project Impacts on Wildlife

By Lucas Wandrie, Sr Wildlife Ecologist, WSB

Although it is well-known that wind-energy projects have need for wildlife services, it is less known that wildlife services provide value for utility-scale solar projects. Wildlife services may be needed at different phases of project development depending on state guidelines. State permits, project off-takers or financiers often require wildlife assessments for utility-scale solar projects. Learn more about what you need to be aware of at each stage of a project.

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Biological assessment or site characterization study

A biological assessment or site characterization study is recommended to identify biological resources that may be impacted by the project including wildlife and fish communities, sensitive habitats, special status species and their habitats, and special management areas. The information gained from biological assessments and site characterization studies can help determine if additional field studies for special status species or sensitive habitats or special status species desktop-level habitat assessments are recommended, and guide project layouts.

Pre-Construction

Raptor nest and eagle nest surveys

Raptor nests, including those of eagles, are protected by the Migratory Bird Treaty Act (MBTA) and eagle nests are further protected by the Bald and Golden Eagle Protection Act (BGEPA). If project construction is planned during the nesting season, it is recommended that raptor nest surveys be conducted. The nesting season varies based on region with earlier start dates in the south. Also, raptor nest surveys are typically conducted prior to leaf-on to locate nests easier. Below are two examples of the need for such surveys.

Northern Harrier

Although many raptor species nest in trees, some species such as the northern harrier (Circus hudsonius) nest in herbaceous areas. The northern harrier is state listed in many states, and some states such as Ohio require nesting surveys when construction activities occur in herbaceous areas during the nesting season. 

Bald and Golden Eagles

Bald (Haliaeetus leucocephalus) and golden (Aquila chrysaetos) eagle nests have additional protective measures and guidance under the BGEPA. The U.S. Fish and Wildlife Service guidance recommends a no disturbance buffer of at least 660 feet surrounding the nest, whether the nest is active or an alternate nest, unless similar activity occurs closer to the nest. If similar activity occurs closer than 660 feet from the nest, a no disturbance buffer of the same distance as the activity can be used. As the process to remove an eagle nest is long and costly, an eagle nest survey can help identify if there are any in the area that could be avoided during the site design process or during the construction process.

Bat habitat assessment

Many bat species roost in trees during their respective active seasons; some of these species are protected at the state or federal level. As such, tree removal within the ranges of protected bat species requires measures to avoid or minimize adverse impacts or incidental take. Avoidance or minimization measures include removing trees outside of the protected species’ active seasons, conducting habitat assessments to determine if the trees are potentially suitable roost sites, presence/probable absence surveys, or in some instances tree removal is entirely prohibited. Bat habitat assessments are often conducted when tree removal is proposed to occur during the active seasons (April 1 to October 31) of the federally endangered Indiana bat (Myotis sodalis) and the federally threatened northern long-eared bat (Myotis septentrionalis). The ranges of the Indiana bat and northern long-eared bat extend throughout much of the eastern United States. Some states, such as Missouri, have additional guidance measures that need to be followed regarding tree removal within the range of federally listed bat species. The bat habitat assessment provides information used to determine where tree removal can occur and whether tree removal can occur during the active season, or if tree removal activities should be postponed. Bat habitat assessments can be conducted at any time of the year.

During Construction

Environmental Compliance

Bird nest surveys may be needed depending on the geographic region of the project, construction timing, and the habitat types where construction activity will occur. The nests of bird species are protected by the MBTA. Nesting surveys are recommended if construction activities are planned to occur in non-agricultural areas during the active nesting season. The active nesting season varies based on region with nesting activity starting earlier at southern latitudes. If active nests are observed during survey efforts, a no disturbance buffer is established until the offspring are fledged or the nest is abandoned. The size of the buffer depends on the species, with smaller buffers used for nest of common species and larger buffers used for nests of rare species and raptors.

Conclusion

Ultimately, understanding the resources within and near your project site early in project development can reduce the risk of costly design revisions as well as the risk for permitting or construction delays.   Although the focus of this piece was on avian and bat-related services for utility-scale solar projects, wildlife services can also help with project-related concerns involving other taxonomic groups including invertebrates (such as the rusty patched bumble bee [Bombus affinis] and Dakota skipper [Hesperia dacotae]) and reptiles (such as the eastern massasauga rattlesnake [Sistrurus catenatus] and Blanding’s turtle [Emydoidea blandingii]).  For additional questions regarding the need for and value of wildlife surveys, contact Lucas Wandrie.

Supporting a Cleaner World Through Resiliency

THE BUSINESS CASE FOR RENEWABLE ENERGY STRATEGIES.

By Amy Fredregill, Sr. Director of Sustainability WSB

With the release of the 2021 Intergovernmental Panel on Climate Change (IPCC) report, the need for businesses, governments, and civilians to accelerate their efforts to build greener economies and avoid a global climate crisis is clear. Businesses and all levels of government are seeing increased climate risk along with demand from customers and community members to find innovative solutions that reduce emissions in energy, transport, and other industries.

The primary strategy to prepare for the future includes increasing energy and water efficiency and creating renewable energy plans while simultaneously managing the impacts that have already reached us, like an increase in extreme weather events.

Renewables and the economy.

Companies and consumers are becoming more selective of who they choose to work with and purchase from, focusing on carbon footprints and those committed to renewable goals, driving growth, and encouraging companies to be innovative. The future of renewables is booming and will ultimately reduce cost and risk, meeting the wants and needs of the consumer. Local governments are also strategically transitioning their operations to be more climate friendly, including securing renewable energy.

Developing predictive tools.

In response to extreme weather events and changing demands, WSB is developing a GIS-based tool to help businesses and government entities strategically transition their operations to renewable energy sources. The tool adapts to client needs and allows them to select which renewable sources should be included in their renewable plans. The tool is predictive, incorporating climate change projections that will affect energy production and operations in the future, and integrates cost and benefits of different sources of renewable energy technologies.

The new tool produces energy production calculations, climate risk assessments and suitability rankings. This data helps companies identify where the risks lie, so they can achieve their future goals, make informed decisions, and come up with solutions to achieve those goals.

The future of renewable energy.

According to the International Energy Agency, renewable energy currently makes up 26% of the world’s electricity, but that share is expected to grow to nearly 30% by 2024. As the demand for renewable energy sources and strategies grows, we have the unique opportunity to support a greener world, reduce cost and risk and meet customer demands.

Amy Fredregill
Sr Director of Sustainability
[email protected]

Moving Past the 2021 Minnesota Drought

By Alyson Fauske, Sr Professional Engineer, WSB

2021 has presented a number of challenges to communities, not least of which was a major drought. Minnesota was faced with above-normal temperatures along with lower-than-average precipitation, resulting in one of the worst droughts seen in the area in the last 20-30 years.

As we move into fall and winter in Minnesota, leaders may be thinking that the worst of the drought is over and that they can move on to thinking about managing winter snow and cold. However, the ramifications of the drought are likely to continue into 2022. Below is a list of some of the ways the drought may have longer-term effects to communities.

1. Loss of saplings. Communities that implemented projects in 2021 that included planting saplings are likely going to find that many of them have not survived the year and are going to need to be replaced in the spring.  
2. Mature tree loss. Due to the stress of drought, mature trees in the community may have suffered from pests or disease. These shade trees are a major resource to communities and may need to be treated or replaced.
3. Watering restrictions. Many communities implemented watering restrictions due to drought conditions. Irrigation systems that ran too often or for too long used more resources than necessary leading to reduced water availability for daily needs. This also resulted in concerned or confused residents that didn’t understand how or why these restrictions were needed for the good of the community.
4. Low reserves of community water supplies. In addition to increased watering demands for vegetation, valuable water was often lost through inefficient or defective equipment in many residents and businesses.
5. Well interference. Drought can often result in domestic or municipal wells running out of water. The MN DNR received significantly more calls this year than normal about dry wells that require them to investigate and often result in owners or municipalities incur repair costs.

Nearly all Minnesota cities experienced some or all these challenges this summer. As a result of the extreme stress put on local water infrastructure, the MN DNR has put together the 2021 Drought Assistance Proposal. This proposal includes a request for $13.3 million in funding to help cities address the effects of this drought.

WSB is tracking the funding package as it moves through the legislature and will be prepared to assist clients with grant applications for the fund as well as identify other funding opportunities that are tied to this effort.

The Three Key Benefits of Stream Restoration

THE CASE FOR PROTECTING AND ENHANCING FRESHWATER INFRASTRUCTURE.

By Luke Lunde, Professional Soil Scientist and Amy Anderson, Project Engineer, WSB

Rivers and streams are a dynamic mixture of water, sediment, aquatic organisms and riparian vegetation. The form of rivers and streams change over time as erosion, accumulation and conveyance of sediment occurs.

Rural and urban surface water runoff and pollution make rivers and streams among the most degraded ecosystems, leading to impaired water quality, biological condition and aquatic habitat. Restoration involves returning a stream or river to a natural shape and condition, so it is well suited to convey water and sediment supply from the watershed.

Restoration projects take many forms and encompass many goals, but three of the most common are to improve water quality, mitigate habitat loss to protect fish and wildlife, and increase the public’s ability to use the channel for fishing and other recreational activities.

Along the way, people access rivers and streams as a means of transportation, hydroelectric energy, recreation and more. We rely heavily on rivers and streams as a water source. That’s why keeping them healthy is so important through watershed protection and restoration.

An added benefit of protection and restoration is that it contributes to sustainability. Rivers and streams provide spaces for water to flow in the event of severe weather like a flood. Communities that have well-maintained channels that have connections to its floodplain have built resiliency into their infrastructure systems so they’re more prepared when faced with extreme weather events.

We work closely with our clients on restoration projects that result in an improved habitat for people, animals and fish populations not only at a project site, but further downstream as well. When the protection and enhancement of water quality is considered as part of a watershed approach or a community’s larger infrastructure planning, the benefits are numerous.

IMPROVE WATER QUALITY

Rivers and streams are important public resources, and the quality of the water in them may determine how they can be used. Many areas along rivers and streams have highly erodible banks. Erosion causes nutrient loading to the river or stream, and when these nutrients are transported downstream, they impact water quality throughout the entire system.

When we improve water quality, we reduce loss of riparian habitat and protect aquatic wildlife living in and around rivers and streams, including fish, insects and plants. Taking actionable steps towards improvement results in an increase of aquatic wildlife populations or species diversity. Improving water quality and habitat make an already valued water resource even more valuable to the public.

MITIGATE HABITAT LOSS

Rivers and streams are critical habitat for wildlife, both in and out of the water. Erosion can make riverbanks unstable and decrease water quality and clarity. Stabilizing stream banks addresses these issues. During a recent restoration of the North Fork of the Zumbro River in Wabasha County, MN, we installed a toe wood structure along the riverbank to create an in-stream habitat for both fish and the aquatic insects to improve access to their food source. The toe wood structure will help maintain and enhance game fish populations and stabilize eroded streambanks.

INCREASE ACCESSIBILITY

Wildlife and people must be able to access rivers and streams to make use of them. By addressing water quality and mitigating habitat loss, accessibility is improved. Now, wildlife can utilize a restored, sustainable aquatic resource while at the same time improving public use for fishing, hunting, swimming and other recreational activities.

The Power of Partnerships in Economic Development

COLLABORATING TO SUPPORT THE NEXT BIG ECONOMIC DRIVER.

By Kim Lindquist, Director of Community Planning & Economic Development, WSB

Partnership is critical to successful economic development. Whether it’s working with cities, counties, private utility companies, developers or other private and public sector stakeholders, finding ways to share information, resources, collaborate and unite around a project ensures communities are ready and able to fully capitalize on development opportunities.

THE BENEFITS OF BUSINESS ATTRACTION

Over the past decade, we’ve seen more economic development projects target Minnesota communities, but turnaround time from the request for information (RFI) to final selection of a site often means stakeholders must be prepared to respond quickly. These projects can bring in new goodpaying jobs, improved quality of life for residents, a larger tax base and numerous other amenities and benefits, making them attractive to community members and local leaders alike. But without full stakeholder engagement in economic development planning, communities may miss their opportunity to secure an advantageous project.

BUILDING THE RIGHT TEAM

A great example of the power of partnerships in economic development is a major data center that was pursued by the city of Lino Lakes, MN. When the RFI was released, local leaders were interested in securing the project to grow jobs, tax revenue and opportunities for their residents. However, the information needed for the RFI was not easily accessible or in one place – and the turnaround time was tight. WSB joined in the effort, tapping into our relationships with partners that included city officials, Greater MSP, Anoka County and Great River Energy to compile the required data.

While the city ultimately lost out on the project, that doesn’t mean it was a failure. Instead, thanks to our collaborative efforts, there is now a site in Lino Lakes that is shovel ready, and the city can explore and pursue additional projects. Furthermore, building and maintaining these partnerships for potential projects down the road can have a huge impact on a community securing the right economic development opportunity when it arises.

MEETING THE NEEDS OF A COMMUNITY

Also important to consider, is that even if a project sounds good on paper, if it doesn’t meet the needs of the community, then it’s of little value. Diverse viewpoints and organizations bring a variety of perspectives to the table, which is key to ensuring maximum gain from a project as well as public support. Whether it’s repurposing a building or piece of land, constructing new housing to meet growing demand or restructuring zoning ordinances to attract significant investment, the bigger and more complex the project, the more nuances there are to consider. More collaboration can foster positive public opinion, better anticipate and overcome obstacles, correctly identify the needs of the community and secure the best possible outcome to promote growth and prosperity.

From strategic planning to final implementation, collaboration is key to the success of any economic development initiative. Our goal in every economic development project at WSB is to make the process seamless for our external and internal partners. We build and nurture meaningful relationships that benefit communities and people across Minnesota, Texas, Colorado, Arkansas and North Dakota, and it’s rewarding to see those efforts come together through the power of partnerships.

Q&A | Kyle Klasen

Kyle Klasen is the Vice President of Construction and Survey at WSB. In his role, Kyle oversees our survey staff nationwide, advances a visionary approach to industry practices and improves the efficiency and value of projects. Kyle’s innovative spirit and client-focused approach is admired by partners and staff. In this Q&A, Kyle reflects on his time at WSB and what the future of the surveying industry looks like.

WHAT IS YOUR FAVORITE PART ABOUT LEADING WSB’S SURVEY TEAM?

My favorite part of leading the survey team is collaborating with everyone. Our team has a strong work ethic and are extremely dedicated to both WSB and the infrastructure industry. I enjoy being surrounded by motivated individuals who strive for new ideas and have ambition to do more.

HOW DO YOU KEEP YOUR TEAM MOTIVATED?

I am excited and passionate about the work we do, and I want that excitement to come across to my team. A lot of our staff are motivated by delivering projects. They start a project when there is nothing there, and by the end of the year, they are able to see all that was accomplished by building and surveying. There is a certain satisfaction in seeing a highway, a road, or whatever it might be, from beginning to end.

WHAT DO YOU WISH PEOPLE KNEW ABOUT SURVEYING AT WSB?

I’d like people to know about the diversity and scope of the work that our team performs. We may be known for our construction abilities, but we do so much more. We have a large presence in the renewable realm on wind and solar projects, we work in the oil and gas industries, and we also do a lot of large-scale boundary work. We are also larger than our Minnesota staff. We have built a solid survey team in Colorado and are working on adding a survey team in Texas in the near future.

WHAT MAKES OUR SURVEY SERVICES UNIQUE?

Our surveying team stand out among our competitors because we are incredibly innovative and forward thinking. We focus on utilizing technology and are extremely advanced in our abilities to manage and operate cutting-edge software. We are leading the industry in our use of 3D models and are leading many firsts in our industry when it comes to the tools we use. Our collaboration and partnerships allow us to be more productive and efficient in the field, ultimately saving contractors and owners money.

WHAT DO YOU LIKE BEST ABOUT WSB?

I like that everybody is always looking for new ways to solve our clients and contractors’ challenges. Creative and out-of-the-box thinking takes collaboration, and all our departments and functional groups work well together. We communicate and are willing to offer experience and solutions, even if it is outside our core functional group. At the end of the day, we have a team where every person is motivated, brings a positive attitude and collectively works together to deliver quality projects for our clients.

SURVEY IS A TOUGH JOB TO FILL. HOW DO YOU PLAN TO ATTRACT AND RETAIN TALENT?

A recent strategic hire told me the main reason they joined WSB was because of the longevity of our staff. You can’t make that up. That sells what it means to be part of the WSB team. They’ve seen companies with turnover after turnover, and it’s clear that WSB is different. We really care for our staff, while providing numerous opportunities for leadership and career advancement for those wanting to stay and help grow the company.

WHAT DOES THE FUTURE OF THE SURVEY INDUSTRY LOOK LIKE?

We are going to see more and more of our processes become automated. We need to think differently and creatively on how we collaborate with contractors. The future of WSB surveying is about nurturing and preserving the client relationships that make our core market in Minnesota, while also fostering growth for our teams in Colorado, Texas, and around the country.

WHAT HAS MADE THE MOST IMPACT ON YOU THROUGHOUT YOUR CAREER?

Early on in my WSB days, a client at Mathiowetz Construction, gave me a shot on a project. Our relationship has grown into an incredible partnership, and it opened my mind and eyes to what contractors are doing, what they need, and how they deliver a solid project. Trust and collaboration are key to achieving success. They changed my mind on how I think about construction. I attribute a lot of my career growth to that partnership and being given a chance to make an impact.

DO YOU HAVE ANY FAVORITE MEMORIES YOU WOULD LIKE TO SHARE?

My most memorable moments were early on, as I was growing as a young land surveyor in a private company. I was fortunate to be working at WSB where they foster an environment of learning, problem solving and mentorship. I recall once finding myself in a particularly challenging situation where I couldn’t find a solution. Ron Bray, one of WSB’s founders, took the time to walk me through it and solve the problem. In retrospect, that situation not only taught me how to solve that problem, but also instilled me in me a desire to apply that same philosophy in managing my team. WSB encourages everyone to push boundaries, solve problems and work as a team to reach the end goal.

Make Your Zoning Ordinance Resident Friendly

By Kim Lindquist, Director of Community Planning & Economic Development, WSB

Cities have spent the last few years working feverishly to get their comprehensive plans completed and approved. Many communities are now breathing a sigh of relief, recognizing the heavy lifting is complete. Unfortunately, for some the work has just begun as cities and townships enter the implementation phase of the updating process.

Most communities are good at keeping up with zoning issues that often arise, such as short-term rentals or solar farms. Zoning text amendments come up due to necessity as land use and issues dealing with structures change over time. Communities are often confronted with something unforeseen when drafting their ordinance and therefore need to amend to stay current.

Unfortunately, ordinance amendments modifying regulations may occur frequently, but there seems to be less time for critically evaluating the ordinance in its entirety. While it is common for regulations to be added to an ordinance, obsolete or confusing items are rarely removed. As residents are increasingly looking to city websites for information, cities should consider if their ordinances have been reviewed for readability and clarity for the “non-planner” public.

WSB’s Community Planning and Economic Development Group has recently been working with communities to review their ordinances. In addition to reviewing them for regulations and legal consistency, we are evaluating their presentation and readability. We are helping these communities to improve the way that the information is presented to ensure that clients, staff and the public can quickly find the answers they are looking for regarding planning and zoning with minimal frustration.

For example, residents may need to look in multiple locations within an ordinance to find the information necessary for completing a simple accessory structure building permit. Setbacks, size, exterior materials, and location standards are often placed within different sections of the zoning code, making it difficult for residents to locate. This building permit “maze” often leads to frustrated residents and calls to the community staff, many of which can be avoided through more concise and clear ordinances.

Additionally, as new staff come on board, the knowledge regarding the original intent of the ordinance may be lost. Improving clarity of the ordinance benefits both residents and practitioners, resulting in more efficient use of community resources.

Building Resiliency into Public Works

By Amy Fredregill, Sr Director of Sustainability, WSB

Reliable resources are necessary for every municipality, and consequently, sustainability in public works programs has grown into a long-term goal for municipalities. Prioritizing sustainability and resiliency in a municipality’s infrastructure ensures that programs are reliable, so that when a user turns on their faucet or light switch, water or electricity is delivered.

Resiliency is an important part of sustainability planning. Resiliency is achieved by having a maximum number of options to be able to pivot and adapt to a disruption in an infrastructure system. For example, a main road in a user’s neighborhood could be under construction, or a resident may not have a vehicle. If the municipality has walkways or bikeways through the neighborhood, the user has the option to walk or bike to their job, store, or pharmacy. The ever-expanding choices can lead to healthier communities, encourage tourism, commerce and more.

Cultivating resiliency is not as complicated as it may sound; creating a walkway or bikeway trail system in a neighborhood is only one example. A municipality can invest in water reuse, renewable energy, energy efficiency, stormwater and flood management systems, too. The programs can be built into a large sustainability plan. Moreover, due to evolving technology, increased adoption rates and system investments, energy choices such as renewable energy and conservation can reduce costs and risks. Communities can take advantage of tax credits for renewables, rebates for conservation, and hedge financial risk through emissions reductions.

The systems we rely on – power and gas grids, water and wastewater systems – are complex and critical to daily life. With the significant progress in energy choices at our disposal, cities can offer more services to residents such as electric vehicle charging, helping them to reduce their monthly bills through energy audits and weatherization, increasing outreach and awareness on clean energy programs, and more.

Winter storms underscore the value of having a range of options at our disposal. By having a diverse menu of power generation options and increasingly energy-efficient operations, communities can be more resilient and adapt to changing circumstances. These are things that cities and communities are thinking about for their own sustainability plans. Prioritizing sustainability and resiliency in municipal systems can help prevent, adapt to and mitigate disruptions in the future.

The top takeaways from the 2021 Minnesota Legislative Session

Bart Fischer, Senior Public Administrator, WSB and Gary Carlson, Intergovernmental Relations Director at the League of Minnesota Cities (LMC) unpack the issues communities should pay attention to post-legislative session.

This year, there was an interesting confluence of state and congressional legislation that will impact cities more than any other time in history. The pandemic and recovery efforts will have a tremendous impact of congressional action on our cities and understanding and navigating these impacts can be extremely important in the coming months.

BF: It seems like it wasn’t that long ago that we were talking about the top issues to pay attention to going into this session, Gary. Thanks for taking the time to dive into the takeaways with me post-session.

GC: Anytime Bart. It was an exciting session with a lot of moving parts. I think one of the biggest takeaways was the impact to our state budget and the American Recovery Act. There are still many question marks and unknowns about the federal package, but if you go back a year ago, we were facing a $2.4 billion deficit and we’ve ended up with quite a surplus due to a recovering economy and the federal government. At the beginning of the session, cities and counties were watching closely as the pandemic impacted tax collections and how it would affect local government aid (LGA) distributions and road funding. Relief packages have bolstered our economy and made the economic recession much less impactful. We were expecting to see deep cuts in state aid, but the legislature put over $5 million into LGA to preserve funding for all cities.

In addition to increased funding for communities, we were also looking for some flexibility in the use of TIF to account for the impact of the pandemic. TIF districts that were created between January 1, 2018, and June 30, 2020, now have three more years to complete development activities.

BF: It’s great to hear some positive news after a year of so many challenges. The pandemic has certainly had significant impacts on our communities. Anything outside of the pandemic or relief packages that communities should be paying attention to?

GC: Yes – the Local Option Sales Tax. For many years, we’ve been having conversations about authorizing local sales taxes without the need for legislative approval. In recent years, the legislature has been trying to define what these sales taxes can be used for. This session, they have further defined allowable uses to be capital projects of regional significance that are generally buildings, park improvements or trails that provide benefits to both residents and non-residents. For example, civic centers, libraries, regional parks and trails, etc. This year, almost every county or city that sought approval for a Local Sales Tax option were approved at least in some part, with the notable exception of proposals for roads and water/wastewater projects. I expect that the trend towards sales tax as a local funding source will continue. 

BF: That’s great news.  Anything else related to taxes?

GC: We’ve been seeking streamlined sales tax exemption for local government construction projects for many years. This year, the sales tax refund process was extended to include public safety facilities when a city or county uses a construction contractor to make the initial purchase of materials. We’re really happy to see this happen. This has the potential to reduce costs by nearly 7%. Contractors will basically provide documentation of the sales tax paid on construction materials and the city can file to get a refund of that money. This is a huge benefit especially if you think about the rising cost of building materials.  

BF: Speaking of public safety, I heard that communities are now able to create multi-jurisdictional fire departments. Can you speak to that?

GC: Yes, this is an issue that many communities have been fighting for years. A group of cities or towns can now form a fire protection district and use economy of scale to fund fire protection more thoroughly. This option allows many cities to be more efficient and it’s a good government reform effort as well. I think you’ll start to see a lot of cities and townships start to explore this option as many around the state are struggling to find enough volunteer fire fighters to staff their stations.

BF: Any final thoughts on this session?

GC: I think the biggest challenges cities and counties have in front of them is determining how to use the federal funds from the American Recovery Act.  So far, 21 cities have received their distributions directly and there are 800+ more still waiting. Determining how to spend the funds will be a long-term project for many communities. Right now, cities can use the funds for a number of things; however, in relation to infrastructure, it is limited to water, sewer and broadband projects. There is some talk that Congress will allow the money to be used more broadly for infrastructure related projects. Communities of all sizes have different needs and adding some additional flexibility will really help with other infrastructure needs.

BF: Thank you, Gary.  As always, I appreciate your expertise and valuable information.

Connect with the League of Minnesota Cities Intergovernmental Relations staff.

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Bart Fischer

Gary Carlson