Bonding for Met Council needs

Two House committees approved a bill that would allow the Metropolitan Council to issue up to $34.2 million in bonds for capital expenditures.

State law requires the council, the planning agency serving the Twin Cities seven-county metropolitan area, to receive legislative approval to issue regional bonds for transportation purposes.

Sponsored by Rep. Paul Gardner (DFL-Shoreview), HF1333 was approved March 23 by the House Finance Committee, six days after approval by the House Transportation Finance and Policy Division. It awaits action by the House Taxes Committee. A companion, SF1851, sponsored by Sen. D. Scott Dibble (DFL-Mpls), awaits action by the Senate Transportation Budget and Policy Division.

Judd Schetnan, the council’s government affairs director, said the money would be used in 2010 for things like fleet purchases, park-and-ride lot construction or expansion and other capital needs to help the regional transit programs operate more efficiently. It also provides local match to federal transit money and funds projects that are not eligible for federal dollars.

“Because many of the bus-related capital items do not have a 30-year life span, we’re not able to use general-obligation bonds,” he said. “The Legislature, years ago, gave us the authority to use these regional bonds. They are only for capital purposes.”

Schetnan said the money also goes toward Metro Mobility and suburban transit providers.

Bonds are repaid through property taxes levied within the council’s Transit Taxing District. “We only issue so much debt in a way that we keep our property taxes flat,” Schetnan said. “Every year we retire roughly the equivalent of what we are seeking at the Legislature.”