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Supervisors warn House File 718 will slow county projects, force November referendums
Summary
Woodbury County supervisors debated how House File 718 limits use of CIP funds for vehicles and raises the bond threshold and timing rules for referendums, potentially delaying time-sensitive projects and increasing costs for taxpayers, the board said.
Woodbury County supervisors spent a substantial portion of the meeting raising concerns about recent state legislation referred to in the meeting as House File 718 and the effect it will have on local capital planning and emergency repairs.
Supervisor Matthew Nelson said the legislation prevents the county from using CIP funds to buy vehicles and alters thresholds and timing for bond referendums, potentially forcing some projects to wait until November and adding election costs. “In the new state legislation House File 718 … they changed that code section that we cannot use CIP to purchase vehicles anymore. We have to do it with cash,” Nelson said. The board discussed both the immediate effect — shifting a rescue truck purchase to gaming funds — and examples of projects that could be affected.
Nelson and other supervisors said the law distinguishes “essential county projects” and “general county projects,” and that the bond threshold for some projects now triggers a referendum at $400,530 (as described in the meeting). Nelson described a conservation road resurfacing opportunity that would save roughly $100,000 if completed while contractors and materials were in the area, but said the new threshold and the requirement that referendum votes occur in November would force the county to pay for an election and lose savings if the board pursues a vote.
County Treasurer Tina Bertrand and Budget Director Ryan Erickson joined the discussion to clarify election timing and logistics. The treasurer said a referendum would normally be consolidated with other ballots in November; the board and staff noted a countywide election can cost tens of thousands of dollars and that emergency needs — for example, reopening bridges after recent flooding — could be delayed by the new timing rules. “You could have a natural disaster that destroys critical infrastructure … and now we’re gonna be forced with waiting till November to have a referendum to be able to get the money to fix our normal infrastructure,” Nelson said.
Supervisors said the change limits local flexibility and could increase costs for taxpayers by requiring earlier cash or additional elections. Several supervisors urged public attention and possible legislative correction. The discussion produced no formal board action beyond requests for staff to work with counsel and provide clarity on how the county will manage capital projects and statutory compliance going forward.
