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State of Minnesota <br />Department of Finance <br /> <br />November 21, 1997 <br /> <br />400 Centennial Building <br />658 Cedar Street <br />St. Paul, Minnesota 55155 <br />Voice: (612) 296-5900 <br />};ax: (612) 296-8685 <br />TTY: 1-800-627-3529 <br /> <br />Dear Local Government Official or Project Spokesperson: <br /> <br />Your community has submitted a capital request to the Department of Finance for consideration for <br />inclusion in the Governor's proposed capital budget to the 1998 Minnesota Legislature. The <br />Department of Finance, in cooperation with the Department of Administration, has been receiving <br />and reviewing capital requests from political subdivisions since May of this year. <br /> <br />The purpose of this letter is to communicate the results of our review, offer suggestions for changes <br />to your request, provide a preliminary project score for each project, and notify you of emerging <br />policy recommendations regarding funding for local projects. <br /> <br />The increasing number of capital requests from local jurisdictions have prompted concerns from <br />Governor Carlson regarding the limited availability of state assistance and increasingly high <br />expectations that are being created. In order to better manage our finite state bonding resources, the <br />Department of Finance recommends the following guidelines to the Governor and Legislature: <br /> <br />political subdivisions should fund local projects to the fullest extent possible before requesting <br />state assistance for capital costs; <br /> <br />2. local governments should provide, at minimum, 50% local match funding for capital costs; <br /> <br />a predesign study should be completed for each project prior to consideration of the request <br />in the 1998 legislative session; and <br /> <br />4. all on-going operating costs of the project should be financed locally, without state assistance. <br /> <br />It is my expectation that the Governor will be unlikely to recommend funding for local requests unless <br />these major recommendations are satisfied by project sponsors. Please consider these and other <br />recommendations, as enclosed, as you finalize your capital requests and decide whether you wish to <br />continue to make application for bonding funds. Final requests and application forms should be <br />resubmitted to the Department of Finance by December 5, 1997. If you have any questions, please <br />contact Mr. Lee Mehrkens of my staff at (612) 296-1700. <br /> <br />Warmest regards, <br /> <br />Wayne Simoneau <br />Commissioner <br /> <br />AN EQUALOPPORTUNITYEMPLOYER <br /> <br /> <br />