ADMINISTRATION - Jon Haukaas, Director of Public Works
Title
A RESOLUTION REQUESTING COMPREHENSIVE ROAD AND TRANSIT FUNDING
Background
The League of Minnesota Cities (LMC) is urging city councils to adopt a resolution calling for the Legislature to pass and Gov. Tim Walz to sign a permanent increase in dedicated funding for state and local road, bridge, and transit systems in Greater Minnesota and the metropolitan area.
Existing funding mechanisms for city street maintenance and reconstruction are inadequate. The bulk of city streets are not eligible for Municipal State Aid (MSA). Nearly 84 percent of city streets are funded only with property taxes and special assessments. Special assessments can be onerous to property owners.
Just as the state has fallen behind in making transportation investments, some cities faced with budget challenges have made the difficult decision to divert volatile property tax revenue to urgent needs such as public safety, water quality, and cost participation in state and county highway projects. Unfortunately, deferring maintenance results in more expensive projects later.
This maintenance requires a reliable dedicated funding source to support the mobility and economic vitality of our communities. The attached resolution supports funding for all parts of the state’s transportation system, but specifically requests an omnibus transportation funding bill that provides additional dedicated state funding for city streets, including funding that can be used for non-Municipal State Aid city street maintenance, construction, and reconstruction.
Recommendation
By motion, adopt the resolution.
Body
WHEREAS, all Minnesota communities benefit from a sound, efficient, and adequately funded transportation system that offers diverse modes of travel; and
WHEREAS, the integrity of Minnesota’s transportation infrastructure is dependent upon long-term planning and ongoing maintenance, both of which require dedicated and sustainable revenue sources; and
WHEREAS, current funding for roads, bridges, and transit systems across all government levels in Minnesota is inadequate, and this under-investment diminishes quality of life for Minnesota residents and hinders Minnesota’s progress as a national business, economic, and civic leader; and
WHEREAS, Minnesota’s transportation system is failing to meet the capacity needs necessary to sustain population growth and promote economic development; and
WHEREAS, many rural roads are not built to modern safety standards and are not meeting the needs of industries that depend on the ability to transport heavy loads; and
WHEREAS, insufficient state funding has delayed regionally significant road construction and reconstruction projects across Minnesota; and
WHEREAS, transportation infrastructure maintenance and improvement costs significantly contribute to rising property taxes; and
WHEREAS, for every one dollar spent on maintenance, a road authority-and therefore taxpayers-save seven dollars in repairs; and
WHEREAS, Minnesota contains over 141,000 miles of roadway, and over 22,500 miles-or 16 percent--are owned and maintained by Minnesota’s 853 cities; and
WHEREAS, almost 85 percent of all municipal streets are not eligible for dedicated Highway User Tax Distribution Fund dollars; and
WHEREAS, the more than 700 Minnesota cities with populations below 5,000 are ineligible for dedicated Highway User Tax Distribution Fund dollars, but have benefitted from the creation of the Small Cities Assistance Account; and
WHEREAS, city streets are a separate but integral piece of the network of roads supporting movement of people and goods; and
WHEREAS, existing funding mechanisms, such as Municipal State Aid (MSA), property taxes, and special assessments, have limited applications, leaving cities under-equipped to address growing needs; and
WHEREAS, city cost participation in state and county highway projects diverts resources from city-owned streets; and
WHEREAS, maintenance costs increase as road systems age, and no city-large or small-is spending enough on roadway capital improvements to maintain a 50-year lifecycle; and
WHEREAS, cities need greater resources and flexible policies to meet growing demands for street improvements and maintenance.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Blaine that this Council requests that the Minnesota Legislature pass and Governor Tim Walz sign a comprehensive and balanced transportation funding package that permanently increases dedicated funding for transportation; and
BE IT FURTHER RESOLVED, by the City Council of the City of Blaine that this Council defines a comprehensive and balanced transportation funding package as an initiative that permanently increases dedicated funding for state and local road and transit systems in Greater Minnesota and the Metropolitan Area.
BE IT FURTHER RESOLVED, by the City Council of the City of Blaine that this Council requests an omnibus transportation funding bill that provides additional dedicated state funding for city streets, including funding that can be used
for non-MSA city street maintenance, construction, and reconstruction.
BE IT FURTHER RESOLVED, by the City Council of the City of Blaine that this Council supports legislation establishing the authority of cities to establish street improvement districts to fund street maintenance, construction, and reconstruction.
PASSED by the City Council of the City of Blaine this 15th day of April, 2019.