State Auditor's E-Update - 12/2/2022
1. Message from Auditor Blaha
2. Relief Associations: Pension Newsletter
3. Reminder: 2021 Temporary Transfer Authority Expires December 31, 2022
4. Meeting: Volunteer Fire Relief Association Working Group
5. Avoiding Pitfall: Confirm Decertification Dates of TIF Districts
1. Message from Auditor Blaha
We are now on Instagram!
We will be using the Instagram platform to highlight the connections between the OSA and local governments across Minnesota. Follow along and get to know us better!
As I look forward to my second term as your State Auditor in the New Year, my goal is to increase our office’s connection to you. We hope that you will not only understand the OSA better but also get the data you need to make the best decisions for your community.
As a reminder, you can also find us on Facebook and Twitter.
2. Relief Associations: Pension Newsletter
The November Pension Newsletter has been released. The Newsletter provides information on the new Supplemental Benefit Reimbursement form that is now available for completion on the Department of Revenue’s website. The Newsletter also includes information about proper handling of grant revenue and reminder about requirements for multiple signatures on checks. Updates on state aid and the Volunteer Fire Relief Association Working Group are also provided.
3. Reminder: 2021 Temporary Transfer Authority Expires December 31, 2022
In 2021, the legislature enacted temporary authority to transfer unobligated tax increments for purposes of assisting private developments consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create or retain jobs in the state. To use this authority, TIF authorities must create and approve a written spending plan after holding a public hearing. Please submit your written spending plans to TIF@osa.state.mn.us if you have not done so already.
The authority to transfer increments under this provision expires on December 31, 2022. Amounts being transferred under this provision must be transferred from the fund or account in which tax increments are segregated and into a separate fund or account by December 31, 2022. Amounts must not be expended directly from the transferring TIF fund or account, and may not be spent after December 31, 2022, if they remain in the TIF district’s fund or account at that time. All transfers must be spent by December 31, 2025.
For more information, see the OSA Statement of Position: Temporary Transfer Authority (2021 Law).
If you have any questions, please contact us at TIF@osa.state.mn.us.
4. Meeting: Volunteer Fire Relief Association Working Group
The Volunteer Fire Relief Association Working Group will meet on December 7, from 2:00 p.m. to 3:30 p.m. Topics on the Working Group’s agenda include discussing required investment through the Minnesota State Board of Investment and the timing of allocations to members of defined contribution plans.
The meeting will be held in an in-person/virtual hybrid format and will be live-streamed for those who are interested in watching. The live-stream link, and the meeting agenda and materials, will be available on the Working Group page of the OSA website.
5. Avoiding Pitfall: Confirm Decertification Dates of TIF Districts
After a municipality approves the establishment of a TIF district, the district is certified and its estimated decertification date is recorded by the county. The decertification date is adjusted if the year the district receives its first increment is different than originally estimated.
It is important that a development authority and its county confirm that there is agreement on a TIF district’s decertification date. If the authority receives tax increment after the decertification date, it must return the increment to the county for redistribution. If the county’s recorded decertification date is earlier than the date used by the development authority, the authority may not be able to cover its bonded debt obligations or its contractual obligations.
The Avoiding Pitfall is available on the OSA website.
