Legislative Update

The 2025 Minnesota Legislative Session closed on May 19, 2025 without completion of final bills.  Lawmakers will hold working groups prior to reconvening for final passage of bills.

The 2025 Minnesota Legislative Session began on January 14, 2025 and will adjourn on May 19, 2025.  Annually, Ramsey adopts Legislative Priorities which provides staff direction to advocate for these priorities to lawmakers.  Below is a summary of bills that have been introduced specific to Ramsey.  Other bills not specific to Ramsey, but which may be of interest are also provided.

SF1314/HF1036 City of Ramsey special tax increment financing authority modifications
This bill amends past special legislation related to TIF District 14.  The language clarifies that the city will be allowed to repay expenses from future tax proceeds so long as interfund loan requirements are met by December 31, 2025 for projects that are identified in the original 2010 Legislation.  These projects include the city's share of the costs necessary to provide for the construction of the Northstar Transit Station and related infrastructure, including structured parking, a pedestrian overpass, and roadway improvements, (2) the cost of land acquired by the city or the housing and development authority in and for the city of Ramsey within the district prior to the establishment of the district, and (3) the cost of public improvements installed within the tax increment financing district prior to the establishment of the district.

• Senator Ann Rest, Tax Committee Chair, supports this bill due to the provisions being included in the Senate's Omnibus Tax Bill in 2024.  Unfortunately, in 2024 the language was removed from the final Omnibus Tax Bill.
• SF1314 was heard in the Tax Committee on March 12, 2025.  The bill was laid over for possible inclusion in the omnibus bill.
• This language has been included in HF2437 Omnibus Tax Bill

SF1981/HF2638 Ramsey sales and use tax exemption for certain construction materials modification
This bill amends 2023 approval related to the Water Treatment Plant project.  In 2023, language only included the Water Treatment Plant and not the trunk watermain improvements.

• Senator Ann Rest, Tax Committee Chair, supports this bill due to the provisions being included in the Senate's Omnibus Tax Bill in 2024.  Unfortunately, in 2024 the language was removed from the final Omnibus Tax Bill.
• SF1981 is scheduled for a hearing on March 26, 2025 in the Tax Committee.  Staff will attend the hearing to testify.
• This language has not been included in HF2437 Omnibus Tax Bill, but staff received feedback it should be included in the Senate version.

SF1467/HF2637 City of Ramsey clean water infrastructure bond issuance and appropriation
This bill requests $6.8 million in state bonding appropriations for the Water Treatment Plant and Trunk Watermain improvements.

• The city received $3.2 million in state bonding funds of our requested $10 million.  Indications in 2023 were the remaining balance would be considered in 2024.  A request in 2024 for $6.8 million was introduced, but not approved. 
• As part of the 2025 Legislative Priorities, the City dropped the request due to the completion of the project in 2025.
• Senator Bahr introduced the 2025 bill following efforts in the two prior years.
• Staff will advocate for the request based on any success in obtaining additional funding will aid in reducing future user fee increases.
• Staff testified in front of the House Capital Investment Committee on April 3, 2025.
• Staff has not witnessed this request in an omnibus bill, but we will continue to monitor legislation in the closing days of session.

SFXXXX/HFXXXX City of Ramsey pedestrian overpass over Highway 10 and Highway 169
Senator John Hoffman has contacted staff regarding a potential additional funding source in 2025 for the Highway 10 Pedestrian Overpass.

• The project is estimated to be $7.5 million in construction costs.  Staff are entertaining an option to prepare an alternative bid to construct the project as a covered overpass.  This would eliminate the need for snow removal during the winter months.
• The City was awarded $3.75 million in 2024 through transportation funds.  The funds may be used for plan design, construction observation and construction costs.  
• Staff also plan to submit for funding on this project through the Congressional Directed Spending.  This would provide federal dollars towards the project.
  • An application has been submitted to Congressman Tom Emmer.  Staff received a denial letter for FY26 funding.
  • An application has been submitted to Senator Amy Klobuchar
  • Additional applications will be submitted as application windows open.
• The goal is to fully fund this project with outside funding sources.

Metro Mobility Service Area Expansion to Ramsey
Senator Bahr has indicated special legislation is not required.  With funding for the service coming from the metro county sales tax, any expansion to the service area is now a budgetary discussion.  Staff will monitor discussions and advocate for the expansion to necessary parties.

SF0037/HF0269 Discontinuation of the Northstar Commuter Rail

• HF0269 has passed out of committee.
• 02/26/25 the bill received its second reading in the house.
• SF0037 has been introduced and referred to Senate Transportation Committee.
• Staff continues to work with Metro Transit on the transition plan to replace the Northstar Commuter Rail with bus service.

Housing Bills
There are four sets of bills introduced and receiving hearings.  The City of Ramsey, along with many other cities, are expressing opposition to the bills as they remove local zoning authority.  This comes in the form of requiring cities to allow incompatible uses within zoning districts or the ability to collect public input.  Attached to the case is the letter sent by Ramsey opposing these bills and others that may be considered that restrict local zoning authority.  The current bills are as follows:

• SF2229/HF1987 - Minnesota Starter Home Act
• SF2231/HF2140 - More Homes Right Places Act
• SF2286/HF2018 - Transforming Main Street Act
• SF1268/HF1309 - People Over Parking Act
• Additional new bills have received hearings with comparable restrictions to local zoning authority, however, those bills have not been successful in committees.

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This case is for informational purposes only.  Staff are available to answer any questions, but do not plan to review each item in detail.