Agenda - Council Work Session - 12/07/2010

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operation of specific transit lines or routes of service within this regional system. The Metropolitan Council must find a stable and growing revenue source to fund the operating budget for Metro Transit. MVST revenue projections have not been reliable and as a result the Met Council is continuing to operate at a funding deficit. The ; / 4 cent sales tax will be used, in part, to fund operating costs on designated transit ways in the Metropolitan Area. It is critical that this tax not be allocated in ways that allow the Legislature or Met Council to abrogate their responsibilities for funding operating costs for the metropolitan transit gUO'Prn V -D Street Improvement Districts Metro Cities supports the authority of local units of government to establish street improvement districts. Street improvement districts allow for cities in developed and developing areas to fund new construction as well as reconstruction and maintenance efforts. The street improvement district is designed to allow cities, through the use of a fair and objective fee structure, to create a district or districts within the city where fees will be raised but must also be spent. Street improvement districts would also aid cities under 5,000, giving them an alternative to the property tax system and special assessments. Metro Cities also supports the further investigation of implementation of the Center for Transportation Studies' research on value capture. The research identifies additional tools for the legislature explore offering to cities as options to finance transportation improvements. WE Highway Turnbacks & Funding Metro Cities supports jurisdictional reassignment or turnback of roads on a phased basis using functional classifications and other appropriate criteria subject to a corresponding mechanism for adequate funding of roadway improvements and continued maintenance. Metro Cities does not support the wholesale turnback of county roads without the total cost being reimbursed to the city in a timely manner. Cities do not have the financial capacity, other than significant property tax increases, to absorb the additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. The 2008 transportation finance bill will add approximately $6 million to the Metro Turnback Fund, bringing the fund up to $20 million, which falls short of the $100 million needed. Metro Cities supports additional funding for municipalities that are assuming the role of maintenance and upkeep on city streets that maintain a level of traffic consistent with state highways. Cities should be compensated for providing a service that traditionally has been borne by the state. The state has abrogated its responsibility for maintaining major roads 36 Metro Cities