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MEMO <br />TO: Chris Volkers and Steve Larson <br /> <br />FROM: Andrew G. Pomroy <br /> <br />DATE: July 17, 2019 <br />SUBJECT: F-M Diversion, legislative update 7-17-19 <br /> <br /> <br />As discussed last month, the prospects for a Special legislative session to pass a bonding bill <br />were slim and the energy around the idea appears to have evaporated over the past month. That <br />leaves preparations for the 2020 bonding bill as the primary legislative activity over the <br />remainder of summer and fall. Earlier this week, MN Management and Budget (MMB) released <br />the preliminary requests of state agencies and local governments. State agencies and local <br />governments have until October 18th of this year to submit revisions and/or new projects to be <br />considered by the Governor and there will be an updated list available after that date. By January <br />15, Governor Walz will release his recommendations. In the meantime, legislative committees <br />and representatives of the Walz administration will be touring the state to view projects and hear <br />more about them from local officials. The House Capital Investment Committee is tentatively <br />scheduled to be in Northwest Minnesota September 3rd-5th. No dates have been released yet <br />for the Senate or administration tours. <br /> <br />With no bonding bill passing during the 2019 session, there will be significant pent up demand <br />for infrastructure spending. That should lead to a bill appropriating over $1 billion, but as any <br />bill needs 60% of the votes in both bodies to pass, the size and makeup of the bill will be subject <br />to considerable debate and compromise between the Governor and all four legislative caucuses. <br /> <br />Relevant Requests <br />The most relevant request for the F-M Diversion project is the Department of Natural Resources <br />(DNR) request for Flood Hazard Mitigation funds. It is expected that all necessary state <br />appropriations from Minnesota will be eligible under that program and to date, the Diversion <br />Authority has taken the stance to not seek a stand alone appropriation, but to apply for funds, <br />when available, under that program. We now know from the recently released report that the <br />DNR requested $20 million for each of the next three biennia. Even if a significant portion of <br />those funds were allocated for the F-M Diversion project, that amount would likely fall short of <br />the project’s requested amount over the next six years. In comparison, the DNR has received <br />$70.119 million over the past six years, dating back to the 2014 session. The larger that <br />appropriation, the more funds should be available for allocation to Moorhead and the <br />surrounding area. <br /> <br />Other communities are also showing a strong desire for a large appropriation for Flood Hazard <br />Mitigation. And while more communities putting pressure on for a larger appropriation is good, <br />it also shows there will be significant competition for whatever dollars are appropriated. While <br />Fredrikson staff are currently reviewing each of the hundreds of requests, from what we’ve seen