Agenda - Council Work Session - 12/07/2010

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V -1 Cities Under 5 ; 000 Population Cities under 5,000 in population do not directly receive any non- property tax funds for collector and arterial streets. Current CSAH distributions to metropolitan counties are inadequate to provide for the needs of smaller cities in the metropolitan area. Criteria, such as the number of average daily trips, should be established in a small city local road improvement program for funding qualification and a distribution method devised. Possible funding sources include the five- percent set -aside account in the Highway User Tax Distribution Fund, modification to county municipal accounts, street improvement districts, and /or state general funds. V -J County State Aid Highway (CSAH) Distribution Formula Even with the additional resources provided by the Legislature through the transportation finance bill, significant needs remain in the metro area CSAH system. The additional revenue for the CSAH system will result in more projects being completed faster, however greater pressure is being placed on municipalities to participate in cost sharing activities, encumbering an already over - burdened local funding system. When the alternative is not building or maintaining roads, cities bear not only the costs of their local systems but also pay upward of fifty percent of county road projects. Metro Cities supports special or additional funding for cities that have burdens of additional cost participation in county road projects. Although only 10 % of the CSAH roads are in the metro area they account for nearly 50 % of the vehicle miles traveled. The new CSAH formula passed by the Legislature will better account for needs in the Metropolitan Area, and the new formula is a first step in providing additional resources for the Metropolitan Area. V -K Municipal Input /Consent for Trunk Highways and County Roads Minnesota Statutes direct the Minnesota Department of Transportation (MnDOT) to submit detailed plans with city cost estimates at a point one and a half to two years prior to bid letting, at which time public hearings are held for citizen /business /municipal input. if MnDOT does not concur with requested changes, it may appeal. Currently, that process would take a maximum of three and a half months and the results of the appeals board are binding on both the city and MnDOT. Metro Cities opposes any changes to the current statute that would allow MnDOT to disregard the appeals board ruling for state trunk highways. The result of such a change would significantly minimize MnDOT's desire or need to negotiate in good faith with a city for appropriate project access and alignment, and it would make the public hearing and appeals process meaningless. 38 Metro Cities .