OSA Weekly Update - 11/9/2023

1. Message from Auditor Blaha

2. Now Open: Registration for Local Government Training Conference

3. Updated: TIF Statements of Position

4. Avoiding Pitfall: Recording Closed Meetings

5. Upcoming Deadlines

1. Message from Auditor Blaha

Congratulations to our friends who delivered a successful election on Tuesday! Thank you to all who gently guided voters challenged by combined polling places, supported nervous first-time candidates, and kept up with other duties that continue during voting season. Smooth elections go a long way in keeping the public trust, and we’re deeply grateful for your work.

Another group of Minnesotans that deserve our thanks are our veterans. An unknown author said it well: “For the veteran, thank you for bravely doing what you’re called to do so we can safely do what we’re free to do.” Enjoy this long weekend to honor our service men and women.

2. Now Open: Registration for Local Government Training Conference

Registration is now open for our annual Local Government Training Conference on November 29, 2023. This year's conference will be fully virtual. You will find the conference agenda as well as the link to register on the OSA website.

3. Updated: TIF Statements of Position

All updates to statements of position related to tax increment financing (TIF) are now available on the OSA website. There were significant changes to the TIF law this year that are reflected in the updated versions:

  • TIF Five-Year Rule and Six-Year Rule: Extensive changes were made to the Six-Year Rule, including the elimination of its prior annual limitation, a restructuring of the early decertification, and a new component regarding the early removal of parcels.
  • TIF Pooling: Details relating to the calculation of the overall pooling limit were clarified.
  • TIF Administrative Expenses: The definition of administrative expenses was changed, details relating to the calculation of the administrative expense limit were clarified, and an exception to the limit was added.
  • TIF Small City Exception: The distance parameter of the small city exception was reduced from 10 miles to 5 miles.
  • TIF Pay-As-You-Go Obligations: A definition was added and their treatment under the Six-Year Rule was addressed.
  • TIF Plan Modifications: Modifications for parcel removals under the Six-Year Rule were addressed.
  • Redistribution of Increment: Clarifications were made to the return of increment after required decertification.

Other updates were also made to following statements of position:

  • TIF Interfund Loans: Interest rate limits for 2023 are identified.
  • Retention of TIF Records: Reference to the 2021 general records retention schedule and minor clarifications are made.

Statements of position can be found on the OSA website.

In addition, you can learn more about recent changes to the TIF laws by checking out the recording of the “2023 Changes to the TIF Act” webinar and the “The Six Year Rule” video.

If you have any questions, please contact us at TIF@osa.state.mn.us.

4. Avoiding Pitfall: Recording Closed Meetings

Local government officials should be aware that Minnesota’s Open Meeting Law requires most closed meetings to be electronically recorded. The law states “[a]ll closed meetings, except those closed as permitted by the attorney-client privilege, must be electronically recorded at the expense of the public body. Unless otherwise provided by law, the recordings must be preserved for at least three years after the date of the meeting.” For more information, see Minn. Stat. § 13D.05, subd. 1(d).

The full Avoiding Pitfall is available on the OSA website.

5. Upcoming Deadlines

Pension Reporting Information

Minnesota law requires forfeiture of fire state aid for fire relief associations that do not submit all required reporting information to the OSA by November 30. If 2022 reporting forms are not fully received in our office on or before that date, a relief association’s 2023 state aid will be automatically forfeited and the relief association will not be eligible for future state aid until the 2022 reporting forms are received. The OSA does not have authority to grant filing extensions beyond the November 30 deadline.

If you have questions regarding reporting requirements or need access to online reporting forms, please contact the Pension Division at 651-282-6110 or pension@osa.state.mn.us.