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2025 is the first year of the current legislative biennium, meaning - the bills introduced last year are no longer "in play" but could be reintroduced. This is also an budget year. It is not a a bonding year, but given that a bonding bill did not pass last session, there is a push to get one done this session.


Last session was historic, for the number of bills passed - and many were passed quickly. As a result, there may be a number of necessary fixes or adjustments made this session; maybe even into future sessions.


Additionally, there are indications that the state may soon be facing a deficit (in the next biennium). Therefore, there will likely to be efforts to curb spending this session, in preparation for that eventuality.


The following is an outline of what MN Small Cities strives to accomplish this session.

Minnesota Association of Small Cities'
2025 State Legislative Priorities 


TRANSPORTATION

MN Small Cities continues to push for reliable, dedicated revenue for our transportation needs. Despite legislation passed in 2023 we have yet to see a year in which revenues have met what the legislature intended. In 2024, MAOSC addressed the ‘year 1’ delay in TAA funding, giving cities a total of $14 Million. With estimates of the Retail Delivery Fee falling below expectations we once again are asking the legislature to fulfill its promise and provide this much needed funding.


EMS


MN Small Cities supports a dedicated, ongoing funding source of $35-50 million to support Minnesota’s small publicly operated EMS systems. This money can be used to offset reimbursement deficits as well as for training and recruitment of our first responders, many of whom are volunteers.




WORKFORCE HOUSING


MN Small Cities supports the roll out and continued investment into targeted housing programs such as ‘Greater Minnesota Housing Infrastructure Grants’ and ‘Greater Minnesota Small Cities (Tier II Cities) Housing Aid Grant Program’. We are seeking an additional $20 million between these two programs. We will also continue to oppose or seek exemptions to the wide range of zoning mandates proposed in recent years.

CITY AUDITS

As the costs for audits continue to rise and the accessibility of auditors dwindles, MN Small Cities will push for policies that reduce the increasingly complex auditing requirements while maintaining transparency and accountability. We also support efforts to increase the number of CPAs through industry supported efforts.


LOCAL SALES TAXES


Last year a report was presented to the legislature from the Dept of Revenue on adjusting the current requirements for local sales taxes. Multiple proposals are being considered. We will be monitoring this closely. Our goal is to make it a simple process for cities to enact local taxes while providing some support for communities with limited retail opportunities. 

WATER/WASTEWATER INFRASTRUCTURE

With no bonding bill passed in 2024 many of our small communities are facing costly but very necessary water infrastructure issues. We will push for a renewed bonding bill with significant investment in water infrastructure and work hard to ensure this does not include requirements to establish local maintenance funds, as proposed in the 2023 session. MN Small Cities supports passing a robust bonding bill with strong investment in public infrastructure. 


OTHER


In addition to this session's top priorties outlined above, MN Small Cities continues to track legislation on other key items of importance to small cities,including but not limited to the areas of: 

• Cannabis Regulations
• Broadband 
• Childcare
• Economic Development
• Public Safety
• Grants, Programs and Other Funding Opportunities

AUTONOMY & LOCAL CONTROL


MN Small Cities is determined to protect the ability of city leaders to make decisions in the best interest of their own communities. Supporting the authority of elected officials is one of the organization's paramount goals.

We will continue working to guard against the exclusion of smaller cities/greater MN from access to programs as well as "scope creep" of larger cities gaining access to programs originally created for small cities. 


Please feel free to contact MN Small Cities Executive Director, Cap O'Rourke if you have questions on these or other issues that affect our small cities. If you would like to receive MAOSC’s monthly newsletters, weekly legislative updates during the legislative session, and other timely announcements, please CLICK HERE to find out how to become a member of MN Small Cities.