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Minnesota’s Municipal Transportation System. Senate Transportation and Public Safety Committee February 11, 2013 Anne Finn, LMC Transportation Lobbyist . About the League of MN Cities. - PowerPoint PPT Presentation


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Minnesotas Municipal Transportation SystemSenate Transportation and Public Safety CommitteeFebruary 11, 2013Anne Finn, LMC Transportation Lobbyist 1About the League of MN CitiesThe League serves 832 of Minnesotas 853 cities through advocacy, education and training, policy development, risk management, and other services

The League also operates an insurance trust for cities2About Minnesotas 853 Cities139 are in the seven-county metropolitan areaOf the 714 cities in greater MN, only 36 have a population > 10,000352 cities have a population < 500500 cities have a population < 1,0003Bottom line: Minnesotas cities are diverse


5Airports135 publicly owned airports in MNMetropolitan area has MSP + 6 reliever airportsRemaining 129 are in greater MNIn greater MN, airports are typically owned by a city

6Muncipal Airports: FundingState Airports Fund (SAF) is the primary state funding source for aeronauticsSAF comes from dedicated taxes on aviation fuel, aircraft registration, and airline flight propertyMoney in the fund is appropriated biennially to MnDOT as part of the transportation budgetState Airports Fund is the primary source of funding for municipal airportsSome federal funding is also available, depending on eligibility and action by feds

7Municipal Airports: Funding ChallengesIn 2003, legislature transferred $15 million from the State Airports Fund to the general fundAmount was repaid in 2008, then taken again in 2009Funds have not been transferred back, meaning some airport maintenance delaysIn addition, the state is statutorily required to repay roughly $15 million to the state airports fund. These latter repayment obligations will only be fulfilled after the state repays all of the $2.4 billion in school district payment delays. 8City Streets

Now for the real meat of the presentation: City streets9City StreetsMunicipal streets make up 19,000 miles (about 14 percent) of roadways in MNMade up of collectors and residential streetsThe design and quality of city streets is significant to all users and is critical to local economiesWe are talking about the street in front of your house; the system that gets you to the county roads and state highways

Quality and design of streets has impact on not only drivers, but transit users and pedestrians

Absolutely critical to attracting and retaining businesses10City Streets: MaintenanceMaintenance of this system is essential if cities are to maximize investmentsEvery $1 spent on maintenance saves $7 in repairs/reconstruction11City Streets: Maintenance

12City Streets: New ConstructionNew construction is sometimes necessaryTo accommodate growth To attract economic investmentsCost of new$1 million per mile Includes engineering, all underground work, C&G, sidewalk, landscaping, etc. ROW acquisition is extra.

13City StreetsCity street system is divided into two systems:Municipal State Aid (MSA)City street system

14Municipal State Aid (MSA): Where does it come from?15Municipal State Aid (MSA) EligibilityMunicipal State Aid (MSA) funds up to 20% of streets in cities over 5,000 populationCurrently, 147 (of 853) cities receive MSAMSA roads make up just 16 percent of total city mileageAdditionally, MSA streets have design requirements16Shortcomings of MSAMost cities are ineligible for MSA In MSA cities, MSA funds are often exhausted by cost participation in state/county projectsProperty taxes supplement MSA on MSA streets17Non-MSA City Streets: The 84%The city street system (city-owned streets not receiving MSA) makes up the remaining 84% of city streetsNon-MSA city streets are funded with property taxes, local government aid and special assessmentsLess common: assistance from county, developer fees

18City Street Funding ChallengesCity budgets are strainedSpecial assessments are unpopular, difficult to administerMaintenance is affordable, but not always a priorityTax exempt property does not pay19City Street Funding by the NumbersAccording to Office of the State AuditorIn 2012 cities collectively budgeted $476.5 million (15.3% of total expenditures) for street maintenance and repairIn 2012 cities collectively budgeted $153.8 million (3.7% of total expenditures) for street construction and improvement20Municipal Street System is Aging

21Existing Funding is Flat to DecliningUnlikelyEligibility for MSA by more cities, more streetsSpecial assessments, property taxes suddenly becoming popular

22The Cost of Doing NothingWhat if revenues remain flat?Deterioration of city streets will accelerateCities will struggle to attract and retain businessesProperty taxpayers will shoulder burden23Street Improvement Districts

24How would it work?Authority neededCities would have ability to establish one or more districtsProjects would be identified when district is establishedFees would be collected within district to fund projects in the plan25What is a street improvement district?Would allow cities to collect fees for:MaintenanceConstructionReconstructionFixed transit infrastructureTrails and pathways26BenefitsEnabling legislation onlyModeled after existing authorityMechanism is fairAllows maintenance and reconstruction to stay on scheduleAllows property owners to pay relatively small fees over time27Conclusion

More InformationAnne Finn651-281-1263afinn@lmc.org29