IV.3. Resolution Requesting Comprehensive Road and Transit Funding; MornsonMay 7, 2019 Council Report 2019-046
Resolution Requesting Comprehensive Road and Transit Funding
Proposed Action
Staff recommends adoption of the following motion: Move to Approve Resolution 2019-037 a
Resolution Requesting Comprehensive Road and Transit Funding.
Overview
The League is urging city councils to adopt a resolution calling for the Legislature to pass and
Governor 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.
The proposed 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.
Supporting Information
• Resolution 2019-037
• LMC City Issue Fact Sheet
Mike Mornson, City Manager
Financial Impact: ________ Budgeted: Y/N __ Source: ________________
Related Documents (CIP, ERP, etc.): ________________________________
Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2019-037
A RESOLUTION REQUESTING
COMPREHENSIVE ROAD AND TRANSIT FUNDING
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, including an additional dedicated state funding source
for transportation, and flexible policies to meet growing demands for street improvements and
maintenance.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
HOPKINS 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 COUNCIL OF THE CITY OF HOPKINS 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 COUNCIL OF THE CITY OF HOPKINS 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.
Adopted by the City Council of the City of Hopkins this 7th day of May, 2019.
______________________________
Jason Gadd, Mayor
ATTEST:
_____________________________
Amy Domeier, City Clerk
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PR �M:
Existing funding mechanlsms for city street ma(ntenance and
reconstruction are inadequate. The bulk of clty streets are
not eligible for Municipai State Afd (MSA�. Nearly 84 percen#
of city streets are funded only with property taxes and special
assessments. Special assessments can be onerous to property
owners and are difficult to implement in some cities.
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 pub8c safety, wate� 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 communi#ies.
LEAGUE-SUPPORTED SOLUTION:
• HF 1288/SF 1269: $10 surcharge on ficense tab fees and
motor vehicle titie transfers, which raises $57 million annually
to be split between the existing Smali Cities Assistance
Account and a new Larger Cities Assistance Account.
• HF 1095/SF 1271: Authority for cities to establish street
improvement districts to fund street maintenance,
construction, and reconstruction.
• HF 846/SF 1228: Creation of a,Local CostShare Assistance
Account within the Locat Road Improvement Program to
provide grants to local governments to heip with the local
share of some trunk highway projects.
r�'� FOR MORE _ _ . �
I � r Anne Finn www.lmc.org/citystreetFacts
�E� �„ �ntergovernmental Re�at�ons Asst. Director
j�/ )TA phone: (651) 281-1263
Email: afinn@fmc.org
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