Bart Fischer, Senior Public Administrator, WSB & Gary Carlson, Intergovernmental Relations Director, League of Minnesota Cities (LMC)

The Minnesota Legislative Session is well underway and as usual, there is a lot of ground to cover. I recently spoke with Gary Carlson, Intergovernmental Relationship Director at LMC, to discuss the current session and the top issues communities should be paying attention to.

BF: Thanks for taking the time out of what I imagine is a busy schedule right now to dive into this topic with me, Gary. There are many ideas being discussed right now at the Capital, but what are some of the most current issues communities should be paying attention to?

GC: This is an exciting and busy session and as you know, the League works on a variety of issues, but I think there are a few topics that should be front of mind for both cities, counties and even private developers. Let’s first discuss the status of the state budget.

BF: Great! A new budget forecast was released recently. What are the takeaways?

GC: It was a relatively positive forecast. The state’s projected outlook went from a deficit to a positive budgetary balance meaning the state will have some money available for projects, although the bulk of the improvement is considered to be one-time resources, which raises concerns about long-term spending commitments. However, one-time resources increase the chances of a bonding bill, which is positive for our communities as it relates to funding sources for capital projects.

BF: That’s good news, especially with the uncertainty over the past year caused by the pandemic. What else should we be paying attention to?

GC: Good transition – the American Rescue Plan Act was just approved by the Senate and the House. This $1.9 trillion stimulus package means a lot of funding for Minnesota that can be used for a wide array for purposes. Minnesota is expected to receive approximately $4.8 billion total. Of that $4.8 billion, the state will receive $2.6 billion, and cities and counties will each receive a little more than $1 billion. It appears this funding will be fairly flexible, and communities should start thinking about any one-time improvements or projects that can be completed using this funding.

BF: That certainly could have a large effect on our communities. Anything at a more local level occurring?

GC: Yes, sales tax authority. Currently, there are 22 cities and counties seeking local sales tax authority. These are being proposed for projects ranging from libraries, road infrastructure, ice arena upgrades, public safety facilities, etc.  This is a growing trend, and more and more cities are looking for a dedicated sales tax to fund capital projects that they feel have significance in their communities.

BF: Yes, it seems more communities are taking that approach in recent years. I’ve heard some talk surrounding the sales tax exemption process. Can you speak to what’s happening there?

GC: The sales tax exemption process for local government projects has been a focus for nearly six years. Most cities and counties are forgoing the sales tax exemption process when working with a contractor for a local project because of its cumbersome nature. It also can be financially risky to pre-purchase materials, etc. We have a bill in to do a general simplification of the process. This is really important and could save cities and counties a lot of money. The legislature is considering a general law to streamline the process however, in the past several years, they have opted to only grant project-specific exemptions. I would encourage cities to put a request in for this and watch how things develop at the capital in the next year. If we’re not successful in securing a general law change, cities should consider mounting an effort to work with their legislators to position those bills.

BF: Any high-level takeaways from the pandemic or lasting effects communities should be prepared for?

GC: The housing market is crazy and that is great news – it means a larger tax base, but there is a countervailing force creating significant uncertainty for retail and business properties and it is unclear just how deep the long-term effects of the pandemic will be on that sector of the tax base. There are conversations occurring that the effects of the pandemic will hit communities in 2022 as more commercial and industrial properties seek an appeal of their property taxes or struggle to continue operations. This is a long-term topic to be thinking about and something to keep in mind as communities plan their budgets in the future.

BF: Thank you, Gary. This is all really great information.  Is there a place we can watch the action unfold and go to for updates?

GC:  The League’s government relations staff provide weekly updates on legislative activity impacting cities. Information can be found at: https://www.lmc.org/news-publications/news/news-types/legislative-news/

Bart Fischer

Bart Fischer has over two decades of experience in public administration. Throughout his tenure, he’s worked in five Minnesota communities as the city or assistant city administrator.  Bart joined our firm in 2019 as a senior public administrator and focuses on lending his public service expertise to our clients.

Gary Carlson

Gary Carlson has 37 years of experience in government affairs. As the Intergovernmental Relations Director at the League of Minnesota Cities, Gary leads the League’s legislative efforts that matter to cities including aid to cities, economic development, employment and human resources, pensions and retirement, public finance, taxes, tax increment financing (TIF) and workers’ compensation.

There are many challenges to maintaining a healthy and prosperous tribal community. Tribal leadership is responsible for building, maintaining and improving the infrastructure and services for tribal members on an on-going basis. This can be daunting and overwhelming when the necessary resources are not readily available. The good news is there are a variety of funding sources available to tribal communities, here are the first steps you can take when applying for funding.

1.) Prioritize goals and align with available funding options

In many instances, tribal sovereign nations have developed planning documents such as integrated resources management plans (IRMP), comprehensive plans, housing plans, surface water management plans, economic development plans, cultural preservation plans, and many others. Having clear goals and aligning them with available funding opportunities will position your tribal community for success at acquiring critical funds for initiatives that are most important.

2.) Determine eligibility, eligible expenses, required matches (if any) and maximum/minimum funding amounts

Funding is available from a variety of local, state, federal, and non-governmental organizations (NGOs) and all have eligibility requirements and allowable expenses. Others may require match (in-kind or cash) and have minimum/maximum funding requests amounts. Understanding these basic requirements is a prudent second step in deciding if pursuing a funding source will be worth the investment of time and how well the grant can support the project. 

3.) Develop partnerships/coalitions

Funding requests can vary greatly based on need and scale of the project or program. For large projects that require a large capital investment or match that may not be available, consider developing partnerships or coalitions with local, state, federal, or NGOs to security necessary funds. This can allow you to leverage multiple funding sources, expertise, volunteers, and support, which in most instances increases your chance obtaining grant funding.

4.) Determine what type of project needs funding

Projects and grant requests may divide into broad categories such as:

• Education/Outreach
• Data Collection
• Implementation
• Monitoring
• Planning

Depending on where your community is with planning and datasets, new projects may need to begin as planning projects and include implementation plans. This will help you describe your project and develop a clear workplan to successfully achieve tribe goals. Some funding sources do not support planning or data collection and simply support project implementation, while others are the opposite, only supporting planning and data collection and not implementation. Therefore, addressing points one and two is critical to your application and should be as persuasive as possible to demonstrate that you have a clear set of goals and implementation plan. In some cases, including elements from each of the above categories on applications, or at least addressing them, can improve your application and odds of being granted funds.

5.) Plan for what comes next

Having a clearly defined workplan and accurate cost estimates for your project/program is critical to successfully winning grants. If there are too many expenses exceeding currently available funding, consider phasing your project over time and explain that in your grant application. It is possible to be awarded funding on a multi-phase project that is implemented over a series of years if it follows a clear plan. Be thinking about what comes after completing the workplan. Consider how you will fund and support the project after the grant is completed.  Many times, grant programs can build on themselves; after successfully obtaining one funding source and completing the project, you may unlock additional funding sources to expand the reach of your initial project.

Other things to consider:

Capacity Building- Do you have capacity (staff, equipment, time, etc.) to complete the project and can you use grant funds to build capacity that provides future opportunity?

Data driven- Can you use existing data to support your rationale for the grant funding?  If not, this may be your request as you identify data gaps and request funds top fill those gaps.