municipal transportation presentation (february 11, 2013)

7/29/2019 Municipal Transportation Presentation (February 11, 2013)

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Minnesotas MunicipalTransportation System

Senate Transportation and Public Safety Committee

February 11, 2013

Anne Finn, LMC Transportation Lobbyist


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About the League of MN Cities

The League serves 832 of Minnesotas

853 cities through advocacy, education

and training, policy development, riskmanagement, and other services

The League also operates an insurancetrust for cities


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About Minnesotas 853 Cities

139 are in the seven-county metropolitan

area

Of the 714 cities in greater MN, only 36

have a population > 10,000

352 cities have a population < 500

500 cities have a population < 1,000


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Bottom line: Minnesotas cities

are diverse


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Airports


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Airports

135 publicly owned airports in MN

Metropolitan area has MSP + 6 reliever

airports

Remaining 129 are in greater MN

In greater MN, airports are typically

owned by a city


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Muncipal Airports: Funding

State Airports Fund (SAF) is the primary

state funding source for aeronautics

SAF comes from dedicated taxes onaviation fuel, aircraft registration, and

airline flight property

Money in the fund is appropriatedbiennially to MnDOT as part of the

transportation budget


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Municipal Airports: Funding

Challenges In 2003, legislature transferred $15

million from the State Airports Fund to

the general fund Amount was repaid in 2008, then taken

again in 2009

Funds have not been transferred back,meaning some airport maintenance

delays


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City Streets


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City Streets

Municipal streets make up 19,000 miles

(about 14 percent) of roadways in MN

Made up of collectors and residential

streets

The design and quality of city streets is

significant to all users and is critical to

local economies


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City Streets: Maintenance

Maintenance of this system is essential if

cities are to maximize investments

Every $1 spent on maintenance saves $7 in

repairs/reconstruction


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City Streets: Maintenance


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City Streets: New Construction

New construction is sometimes necessary

To accommodate growth

To attract economic investments

Cost of new

$1 million per mile

Includes engineering, all underground work,C&G, sidewalk, landscaping, etc.

ROW acquisition is extra.


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City Streets

City street system is divided into two

systems:

Municipal State Aid (MSA)

City street system


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Municipal State Aid (MSA):

Where does it come from?

62%

29%

9%

Highway User FundDistribution of 95 Percent

Trunk Highway

Fund

County State AidFund

Municipal State

Aid Fund


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Municipal State Aid (MSA)

Eligibility Municipal State Aid (MSA) funds up to

20% of streets in cities over 5,000

population

Currently, 147 (of 853) cities receive MSA

MSA roads make up just 16 percent of total

city mileage

Additionally, MSA streets have design

requirements


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Shortcomings of MSA

Most cities are ineligible for MSA

In MSA cities, MSA funds are often

exhausted by cost participation instate/county projects

Property taxes supplement MSA on MSA

streets


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Non-MSA City Streets: The 84%

The city street system (city-owned streets not

receiving MSA) makes up the remaining 84%

of city streets

Non-MSA city streets are funded with property

taxes, local government aid and special

assessments

Less common: assistance from county,developer fees


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City Street Funding Challenges

City budgets are strained

Special assessments are unpopular,

difficult to administer

Maintenance is affordable, but not

always a priority

Tax exempt property does not pay


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City Street Funding by the

Numbers According to Office of the State Auditor

In 2012 cities collectively budgeted $476.5

million (15.3% of total expenditures) for streetmaintenance and repair

In 2012 cities collectively budgeted $153.8

million (3.7% of total expenditures) for streetconstruction and improvement


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Municipal Street System is

Aging


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Existing Funding is Flat to

Declining Unlikely

Eligibility for MSA by more cities, more streets

Special assessments, property taxes suddenly

becoming popular


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The Cost of Doing Nothing

What if revenues remain flat?

Deterioration of city streets will accelerate

Cities will struggle to attract and retain

businesses

Property taxpayers will shoulder burden


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Street Improvement Districts


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How would it work?

Authority needed

Cities would have ability to establish one

or more districts Projects would be identified when district

is established

Fees would be collected within district tofund projects in the plan


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What is a street improvement

district? Would allow cities to collect fees for:

Maintenance

Construction

Reconstruction

Fixed transit infrastructure

Trails and pathways


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Benefits

Enabling legislation only

Modeled after existing authority

Mechanism is fair

Allows maintenance and reconstruction to

stay on schedule

Allows property owners to pay relativelysmall fees over time


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Conclusion


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More Information

Anne Finn

651-281-1263

[email protected]

municipal transportation presentation (february 11, 2013)

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