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DEDICATED STREET FUNDING FOR ECONOMICALLY COMPETITIVE CITIES <br />DID YOU KNOW? <br />For every $1 spent on maintenance, <br />a road authority saves $7 in <br />repairs. Preventative maintenance <br />projects can prolong the lifecycle of <br />streets to 50 to 60 years. Without <br />ongoing maintenance, the average <br />life expectancy of local streets is <br />approximately 25 to 30 years. <br />Oi <br />LEAGUE OF <br />MINNESOTA <br />CITIES <br />PROBLEM: <br />Existing funding mechanisms for city street maintenance and <br />reconstruction are inadequate. The bulk of city streets are <br />not eligible for Municipal State Aid (MSA). Nearly 84 percent <br />of city streets are funded only with property taxes and special <br />assessments. Special assessments can be onerous to property <br />owners and are difficult to implement in some cities. <br />Just as the state has fallen behind in making transportation <br />investments, some cities faced with budget challenges have <br />made the difficult decision to divert volatile property tax revenue <br />to urgent needs such as public safety, water quality, and cost <br />participation in state and county highway projects. Unfortunately, <br />deferring maintenance results in more expensive projects later. <br />This maintenance requires a reliable dedicated funding source <br />to support the mobility and economic vitality of our communities. <br />LEAGUE -SUPPORTED SOLUTION: <br />• HF 1228/SF 1269: $10 surcharge on license tab fees and <br />motor vehicle title transfers, which raises $57 million annually <br />to be split between the existing Small Cities Assistance <br />Account and a new Larger Cities Assistance Account. <br />• HF 1095/SF 1271: Authority for cities to establish street <br />improvement districts to fund street maintenance, <br />construction, and reconstruction. <br />• HF 846/SF 1228: Creation of a Local Cost -Share Assistance <br />Account within the Local Road Improvement Program to <br />provide grants to local governments to help with the local <br />share of some trunk highway projects. <br />FOR MORE INFORMATION: <br />Anne Finn <br />Intergovernmental Relations Asst. Director <br />Phone: (651) 281-1263 <br />Email: afinn@lmc.org <br />www.lmc.org/citystreetfacts <br />©2019 League of Minnesota Cities. All Rights Reserved. <br />