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Coalition of Greater Minnesota Cities warns of continued fights over zoning, says LGA cut avoided
Summary
A Coalition of Greater Minnesota Cities representative told the Proctor City Council that the 2025 legislative session’s unusual power-sharing and forecast-driven budget pressures put Local Government Aid and bonding at risk, but advocacy helped remove LGA cuts from the final bill.
Darren Lee, representing the Coalition of Greater Minnesota Cities, told the Proctor City Council on Oct. 6 that a contentious 2025 legislative session left uncertainty for city budgets and local projects but produced mixed results for municipal priorities.
Lee, who identified himself as "Darren Lee with Larry and Hood" and said he works on transportation issues for the coalition, said the session began with a narrowly contested seat that produced a temporary Republican majority and later a power-sharing agreement that required committee co-chairs and alternating control of gavels. "There was sort of a power struggle at the beginning of the session," Lee said, and the arrangement changed how committees negotiated bills.
The coalition’s top priorities were protecting Local Government Aid (LGA) and securing a bonding bill, Lee said. He described a final bonding package of roughly $773 million that included $176 million for drinking-water and wastewater projects through the Public Facilities Authority and $62 million for local roads and bridges. "Considering that it was only a $773 million bill… it was pretty good all things considered," Lee said.
Lee said the coalition strongly opposed an early Senate tax-bill proposal that would have cut $20 million in LGA and a similar amount in county program aid; he reported that Coalition lobbying and member contacts helped have the LGA cut dropped from the final bill. "At the end of the day after our efforts we were able to avoid that cut and that was dropped from the final bill," Lee said.
He also recounted the ongoing debate over so-called "missing middle" or "Yes to Homes" housing bills, which would expand multifamily zoning, reduce parking minimums and limit some local design controls. Lee said those measures prompted broad advocacy from environmental groups, equity advocates and developers and that the Coalition and some city officials had testified in committee. "There's going to be more confrontation on this next year," he said.
In response to council questions, Lee said some population-loss narratives are anecdotal and that forecast-driven budget numbers can shift: "I would be totally guessing if I said I knew what the November forecast was going to say," he said when asked about the state revenue outlook.
Lee closed by encouraging local officials to participate in coalition events and to contact coalition staff for help on labor negotiations, bonding requests and legislative advocacy.
Why it matters: LGA and bonding fund core local services and capital projects. The coalition’s account signals that, despite smaller overall state bills, cities may still win targeted support — but stresses ongoing risk, particularly on housing and zoning mandates expected to return as flashpoints in the next session.
