State Auditor's E-Update - 3/18/2022

1. Message from Auditor Blaha

2. Available: 2022 Supplemental Benefit Reimbursement Amounts

3. Released: 2020 Minnesota City Finances Report

4. Reminder: Submit TIF Plans Within 60 Days

5. Avoiding Pitfall: Meeting Minutes

1. Message from Auditor Blaha

This is a reminder that you are invited to join State Auditor Blaha this coming Tuesday, March 22 from 1:00-2:00pm for the annual State of Main Street. This is the culmination event following five regional listening sessions in February. More information on the press conference may be found on the OSA website.

Auditor Blaha will share the following analysis based on the presented trends and the discussions held during the listening sessions:

Local governments took on three main tasks at the start of the pandemic: a public health response, stabilizing infrastructure, and an economic response. The interdependence of these responses is key, as none would exist without the other.

Our data focused on 20-year trends in revenue, expenditures, reserves, and debt for counties, cities, and townships. Among the 20-year trends in revenues, we found an increasing reliance on property taxes as state aid and other revenue sources remained flat or decreased, and increased revenues in both actual and inflation-adjusted dollars. Among the trends in expenditures, we noted the top spending priorities were general government for counties, public safety for cities, and roads and bridges for townships.

There was a significant increase in federal dollars to local governments in 2020 through the federal CARES Act. Much of the CARES funding flowed directly to local governments whom used the money to address the most pressing local needs, which varied by region and size of government. Local control was lauded as an effective tool to breakdown complex, interdependent responses into manageable parts. Collaboration at the local level was also helpful, such as intergovernmental cooperation and working with non-government organizations and private businesses.

We heard from local government leaders that holding taxes steady was a common goal. We also heard how flexibility, adequate time, and clarity in guidance was key to ensuring funds make the maximum impact.

If you have any feedback on the above, please email Auditor Blaha at State.Auditor@osa.state.mn.us. We hope you will join us on Tuesday!

2. Available: 2022 Supplemental Benefit Reimbursement Amounts

A listing of the 2022 supplemental benefit reimbursement amounts for fire relief associations, released by the Department of Revenue, is now available on the OSA website.

3. Released: 2020 Minnesota City Finances Report

This week State Auditor Julie Blaha released the City Finances Report. The Report summarizes the current and long-term trends for city revenues, expenditures, and debt. The Report and its underlying data are available on the OSA website.

If you have questions, please contact us at GID.OSA@osa.state.mn.us or call 651-297-3682.

4. Reminder: Submit TIF Plans Within 60 Days

All TIF plans and modifications should be electronically submitted, along with the appropriate TIF Plan Collection Form, via in the State Auditor’s Form Entry System (SAFES). Please do not mail copies of TIF plans. State law requires that all TIF plans be filed with the OSA within 60 days after the latest of:

  1. Filing of the request for certification of the TIF district;
  2. Approval of the plan by the municipality; or
  3. Adoption of the plan by the authority.

If you have any questions or need access to SAFES, please contact us at TIF@osa.state.mn.us.

5. Avoiding Pitfall: Meeting Minutes

Auditors review the minutes of the governing body of a public entity when performing financial and compliance audits. Minutes are important because they help the public entity respond to questions and concerns about actions it has taken. For example, questions about whether a particular payment was authorized should be resolved if the minutes include a listing of all bills allowed or approved by the governing body for payment.

This Avoiding Pitfall is available on our website.