State Auditor's E-Update - 8/26/2022

1. Message from Auditor Blaha

2. Opportunity: Volunteer Fire Relief Association Working Group

3. Deadline: TIF Excess Increment

4. Avoiding Pitfall: Obtaining Loans or Lines of Credit

1. Message from Auditor Blaha

This week the Minnesota State Board of Investment (SBI), which I sit on as your State Auditor, considered the final installment of a three-part report on the impact of climate change on the fund. The report lays out the evidence that rising global temperatures are changing risks and opportunities in financial markets. The report goes on to recommend that considering climate change risks and opportunities is a key strategy to protect investment funds long term.

The full report can be found on the SBI website.

You can find my full statement on the OSA website.

2. Opportunity: Volunteer Fire Relief Association Working Group

There are two open seats on the State Auditor’s Volunteer Fire Relief Association Working Group. One seat is for a defined contribution (split-the-pie) plan representative, and the other is for a defined-benefit plan representative. The preference is that potential candidates be current relief association officers or trustees.

It is anticipated that the Working Group will hold five or six weekday meetings between October and December. The meetings will be held in a hybrid format following whatever safety guidance exists at the time we start. Meetings will be live-streamed so those interested in viewing from around the State can do so, and recordings will be posted to the OSA website.

Anyone who has questions or would like to be considered for these open positions should contact Rose Hennessy Allen at (651) 296-5985 or rose.hennessy-allen@osa.state.mn.us.

3. Deadline: TIF Excess Increment

If a TIF district had excess increment calculated for 2021 it must be used for allowable purposes or returned to the county auditor by September 30th. For more information, please see our article, Excess Increment Deadline Reminder.

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

4. Avoiding Pitfall: Obtaining Loans or Lines of Credit

The authority of a local unit of government to incur indebtedness is governed by statute. Many local units of government have authority to issue bonds or certificates of indebtedness for specific purposes, often subject to restrictions on amount or duration. Some local units of government are authorized to enter into a lease-purchase agreement with a local bank, equipment company, or other entity. See, e.g., Minn. Stat. § 465.71.

The Avoiding Pitfall is available on the OSA website.