Report suggests more oversight for U.S. Bank Stadium reserves.

Byline: Brian Johnson

A new report from the state Legislative Auditor says the Legislature should take a closer look at a U.S. Bank Stadium reserve account that's expected to grow by $149 million during the next five years.

The Minnesota Management and Budget office is primarily responsible for managing the reserve account, which uses gambling revenue to pay stadium debt service and related expenses. The state established the account in 2012.

Though the MMB has complied with its requirements, the Legislature should take a "more active oversight role in this extremely complex area," according to a 48-page report released Wednesday by the Office of the Legislative Auditor.

Revenue from electronic pull tabs, a key stadium funding source, has ebbed and flowed since the $1.1 billion stadium was approved in 2012. After revenue initially fell short of expectations, the flow of gambling money has picked up in recent years.

The stadium reserve balance currently exceeds $44 million, and MMB expects that to reach $193 million in 2023.

That anticipated growth "merits a strategic conversation about future uses of the account," the report said. Suggested changes include "revisiting" the 2012 law approved by the Legislature to generate stadium reserve; paying off debt early; or working with the Minnesota Sports Facilities Authority on building improvements.

Also in the report, the OLA urges the Legislature to assess whether the MMB's current spreadsheet-based accounting approach provides "necessary transparency to oversee" the growing account.

The investigation looked at MMB's use of the reserve account to pay down stadium debt, as well as its "ongoing computation of the reserve fund balance." The examination covered a period from July 1, 2012, to June 30, 2018.

A complaint to a state legislator triggered the audit. The complaint "alleged that MMB improperly transferred $20 million" from the account, but the OLA found "no...