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Our !Almon: To work together to respcaibty grow Our community, and to provide quality, COM4ffeciive, and efficient government invoices. <br />CC Regular Session <br />Meeting Date: 03/26/2019 <br />By: Kathy Schmitz, Administrative Services <br />Information <br />Title: <br />Adopt Resolution #19-073 Requesting Comprehensive Transportation Funding <br />7. 6. <br />Purpose/Background: <br />The League of Minnesota Cities recently issued a Legislative Action Alert to mayors, councilmembers, city <br />administrators, public works directors or city engineers who may support increased transportation funding including <br />a League initiative aimed at securing street improvement district authority. The League is requesting help in the <br />form of letters and resolutions of support to the authors of this legislation. The opposition has aggressively lobbied <br />against advancing this bill, and support is needed to keep the bill viable in 2019. <br />This resolution is consistent with recent legislative priorities in regard to the importance of transportation funding. <br />Key Points: <br />• Existing funding mechanisms for street maintenance and reconstruction are inadequate. Special assessments <br />can be onerous to property owners and are difficult to implement for some cities. <br />• Municipal state aid (MSA) is limited to cities over 5,000 population--148 of 853 cities in Minnesota --and <br />cannot be applied to more than 20% of a MSA city's lane miles. Existing MSA is not keeping up with needs <br />on the MSA system. <br />• This is enabling legislation. No city would be required to create a municipal street improvement district. <br />• This authority would provide a funding mechanism that is fair. It establishes a clear relationship between who <br />pays fees and where projects occur, but stops short of the benefit test that sometimes makes special <br />assessments vulnerable to legal challenges. It also does not prohibit cities from collecting fees from tax <br />exempt properties within a district. <br />• This tool allows cities to perform maintenance and reconstruction on schedule. Timely maintenance is <br />essential to preserving streets and thereby protecting taxpayer investments. <br />• This tool would allow property owners to fund expensive projects by paying relatively small fees over time. <br />The tool could be used to mitigate or eliminate the need for special assessments. <br />The resolution recognizes broad -based support for transportation funding and includes transit funding in the text. <br />Observations/Alternatives: <br />If passed, this legislation would provide options for local road funding. <br />Recommendation: <br />It is recommended that the Council adopt Resolution # 19-073 Requesting Comprehensive Transportation Funding <br />Action: <br />Motion to Adopt Resolution #19-073 Requesting Comprehensive Transportation Funding <br />