Agenda - Council Work Session - 05/12/2020

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interview taking place, reiterating the aims of the research and informing them that they can opt out of any question, or the interview, at any time. The subjects of our research can also benefit from this research. The first opportunity would be substantive research into financial means of road infrastructure. The City of Ramsey is at a crossroads between what road funding methods it wants to pursue in order to meet their infrastructure needs (property tax, special assessment, franchise fee), and they are likely not the only municipality struggling with this issue. Our published results may be beneficial to the State of Minnesota by coming up with recommendations for infrastructure needs for similar communities, benefiting a state as opposed to just one city. Another policy yield may take the form of greater cooperation and interaction of cities in addressing road infrastructure needs. Our research highlights that the State of Minnesota, specifically the Minnesota State Highway Investment Plan (MnSHIP), is concerned of costs being too high and funding levels being too low for future road infrastructure over the next 20 years. Through our results and recommendations, we may jump-start cooperation and coalitions from other municipal actors in the state to work together in addressing this ongoing issue and create courses of action to mitigate it. RESULTS Based on the interviews and surveys collected from eight cities in the 7-County Metro Region the research team was able to document road funding techniques used in each municipality as well as the rationale for their current funding structures. Profiles depicting each of the city's funding structures are presented below followed by an examination of stated rationales corresponding to the two research objectives. Obiective 1: Survey and interview city managers and engineers to document the range and nature (e.g. franchise fees, property taxes, general revenue, special revenues, political feasibility, and community engagement efforts) of sustainable road funding mechanisms in suburban cities in the Twin -Cities Metro Region. City l City 1 uses a combination of special assessments, MSAS funds, and bonding to fund their roads. Their plan for using special assessments was developed in 1997 and aimed to assess 50% of the street surface cost to benefitting properties. The formula was tied to the Construction Cost Index so that assessments would increase as the cost of construction materials increased; however, over time the percentage that properties are assessed has dipped to between 20-30% of project costs as the cost of labor and other associated costs outpaced the Construction Cost Index. Out of the 220 miles of road in City 1, 40 miles are covered under the MSAS system and the city receives roughly $2.2 million from state transportation funds for maintenance along these routes. The city still assesses the properties adjacent to these routes, but at a lower rate. The city also uses bonds to cover road maintenance and reconstruction costs. Interviewees mentioned that due to the City's good bond rating, and their aggressive approach to maintaining their roads, they believe the City can sustainably manage its debt despite annual debt service increases.