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Transit, regional parks fare well in legislative session

The 2009 legislative session included passage of solid funding support for the region’s transit operations and regional parks in the 2010-11 biennium. In addition, the Council will receive the remainder of the state’s funding commitment for Central Corridor light rail, and the Council was given authorization to issue regional bonds for other transit capital needs.

Here’s a roundup of legislation passed and signed by the governor that impacts Council programs.

No service cuts foreseen for transit

The package of transit funding legislation − combined with federal stimulus funds, administrative efficiencies and use of reserves − is expected to provide sufficient revenues to erase a projected $62.4 million revenue shortfall and maintain current service levels over the next biennium.

One part of the package − the appropriation from the General Fund − totals nearly $144.5 million for the two-year period, although that figure reflects a reduction of $12 million (7%) from the previous biennium’s appropriation. About 93% of this amount is specified for bus transit and approximately 7% for rail operations.

Legislation allows the Council to transfer some revenues from its Livable Communities Demonstration Account and its Tax Base Revitalization Account to its transit operating fund. Specifically, up to 50% of the revenues from those accounts may be transferred in calendar years 2009 though 2011.

The Council is also allowed to transfer some funds to transit operations from the Right-of-Way Acquisition Loan Fund (RALF). In this case, up to 75% of the amounts levied and collected in calendar years 2009-2011 are eligible for such transfers.

In addition, legislation accelerates the percentage of motor vehicle sales tax (MVST) revenue that goes to the Council’s transit operations. This change will provide the Council with an additional $6 million in fiscal year 2010 and $6.75 million in fiscal year 2011. The budget also allows for the additional bus services as part of the Urban Partnership grant in the south metro area and for operations of the new Northstar commuter rail service.

Legacy Fund boosts spending for regional parks

Regional parks received funding from three pieces of legislation. In the omnibus environment, energy, and natural resources finance bill, funding was increased by $520,000 over the current biennium for the operation and maintenance of the park system. Although the appropriation from the General Fund reflected a somewhat reduced funding base, revenue from the lottery in lieu of sales taxes increased to slightly more than $5 million in each year of the biennium.

From the Environmental Trust Fund, regional parks received about $1.3 million for land acquisition. Using park bonds, the Council must match two-thirds of this allocation. The combination would make more than $2.1 million available for land purchases.

Finally, funding from the new Minnesota Legacy program will provide approximately $27.7 million in the next biennium to the Metro Council for distribution to park implementing agencies. Most − 90% − of these funds are slotted for visitor services, natural resources restoration, and facilities rehabilitation and development. The remainder − about $2.8 million − would be used for park acquisition grants in the metro regional parks system. For these state acquisition funds, the Council is required to provide a 2-to-3 match in park bond dollars.

Funds to implement regional water supply plan

The Council will receive $400,000 next year from the Minnesota Legacy’s clean water fund to move forward with implementing the regional water supply’s master plan developed by the Council and its advisory committee.

Other noteworthy legislation

• The Minnesota Legacy legislation makes a number of changes to the Mississippi River Corridor Critical Areas program. It codifies existing requirements and mandates the Department of Natural Resources (DNR) to adopt new rules for the program, including new districts within the area and the development of new guidelines and standards within each district.

• The Council will receive $8.5 million in state bonds for the Central Corridor LRT, fulfilling the remainder of the state’s financial commitment to the project in the state bonding bill.

• The omnibus tax policy bill gives the Council $34.2 million in regional bonding authorization for transit capital needs, particularly for fleet replacement and other capital needs to operate the regional transit system.

• A local government mandates reform bill adds Anoka and Dakota Counties to the metro counties that do not have to prepare a land-use plan for unincorporated territory within the county.

• A bill renames individual sewage treatment systems (ISTS) to subsurface treatment systems (SSTS) and allows local units of government to regulate homeowner installations. The bill also requires the inspection of an SSTS before a local unit of government may issue a building permit or variance for the addition of a bedroom. In selling property containing this type of system, the owner would have to disclose information about the compliance status of the treatment system and provide a copy of any previous inspection reports.