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Committee lays over bill to restore $87,501 in withheld LGA for Stuart pending auditor certification
Summary
Senate File 1108 would require the Commissioner of Revenue to pay $87,501 to the city of Stewart (Stuart) if the state auditor certifies required 2022 financial reporting; the committee laid the bill over after testimony from the League of Minnesota Cities.
Senate File 1108 was presented March 18 to the Senate Taxes Committee to resolve a single-city Local Government Aid (LGA) withholding from 2023. Senator Gruenhagen, the bill’s sponsor, said the bill would allow the city of Stewart (a roughly 400-person community) to receive $87,501 that had been withheld in 2023, provided the state auditor certifies the city submitted the required 2022 financial reports.
Senator Gruenhagen told the committee that the city missed a required filing amid an administrative transition and that the bill provides a one-time appropriation in fiscal year 2025 from the general fund to the Commissioner of Revenue to pay $87,501 by June 30, 2025, if the certification requirement is met. He described the payment as “a huge benefit” for the small community.
Pierre Willett of the League of Minnesota Cities testified in support and said the League has been working with city officials and the state auditor to improve compliance across the roughly 750 cities that receive LGA. Willett said he is “hopeful that the city of Stuart will not be here before you again as they are currently compliant with all their requirements for future LGA payments.”
The committee did not take a final vote on the measure. Chair Reisz indicated Senate File 1108 was laid over for further consideration.
Clarifying details in committee: the sponsor described a required certification by the state auditor tied to the city’s 2022 financial reporting and a deadline for payment of June 30, 2025. The transcript contains inconsistent wording on the exact certification date; the payment amount ($87,501) and the June 30, 2025 payment deadline were stated in committee.
