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Woodbury County leaders say new state law will force costly referendums and limit use of CIP funds
Summary
Board members warned that House File 718 restricts use of CIP funds for vehicle purchases and raises bond thresholds and timing requirements, which they say could delay needed infrastructure work and add election costs that outweigh short-term savings.
Board members and county staff on July 22 warned that a recent state law, House File 718, constrains how Woodbury County can pay for capital projects and could force referendums that add cost and delay.
"In the new state legislation, House File 718 ... we cannot use CIP to purchase vehicles anymore," said Ryan Ericson, the countys budget director, recapping guidance he and other staff received from attorney Jason Kaminsky of Allers and Cooney. Ericson said the county had allotted about $90,000 in CIP for a rescue truck and will instead use gaming funds now and reallocate CIP dollars later.
The board illustrated a concrete example they said would be affected: resurfacing two miles of roadway at Little Sue Park this year would save roughly $100,000 because paving equipment and an asphalt plant are already mobilized. Under the new law, however, the bond referendum threshold cited by board members is $400,530 and referendum votes must be held in November, which the county auditor estimated would add about $60,000 in election costs. "So now the taxpayers are out $160,000 on a road and we still don't have the road done yet," a board member said.
Board members and staff framed the changes as a loss of local flexibility. "We're elected to protect the public's dollar," one supervisor said. "This is going to slow down anything that we're trying to do which government is already way too slow."
Treasurer Tina Bertrand asked for procedural clarification about whether referendums must coincide with a regular election or can be held as a special election in November. County staff said referendum votes are effectively tied to November election dates and typically appear on the same ticket as other fall elections.
Board members also raised public-safety concerns. They pointed to the March 2019 floods that destroyed several county bridges and warned that if emergency repairs require a November referendum, critical infrastructure could remain unusable for months.
The board urged public awareness and suggested the county attorney or staff prepare plain-language guidance explaining how the law affects local projects. No formal action was taken to change county policy at the meeting; members said they would pursue additional clarification and, where appropriate, legislative remedies.
The board adjourned after wrapping up reports and public comments.
