HomeMy WebLinkAbout2011-04-06 PACKET 02.C.REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA
MEETING ITEM #
DATE 4/6/2011 °
PREPARED BY Engineering Jennifer Levitt
ORIGINATING DEPARTMENT DEPARTMENT HEAD
COUNCIL ACTION REQUEST
Presentation: MSA System Overview.
SUPPORTING DOCUMENTS
® MEMO /LETTER: Jennifer Levitt, March 31, 2011.
❑ RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS
'U
City Administrator Date
COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
Document
CITY OF COTTAGE GROVE
MINNESOTA
To: Honorable Mayor and City Council
Ryan Schroeder, City Administrator
From: Jennifer Levitt, City Engineer
Date: March 31, 2011
Subject: MSA System Overview
Introduction
Given the discussions that took place on March 29, 2011 at the Community Meeting involving
MSA roadways, I thought it would be a good opportunity to outline the MSA (Municipal State
Aid) prograrn.
The City's State Aid system includes roadways that have been designated following MnDOT
Municipal State Aid guidelines. According to Minnesota State Aid guidelines, each city is
allowed to designate 20 percent of the total public roadway miles within the municipality as State
Aid Streets. Attached is a House Research report by Matt Burress dated October 2010, it does a
good job of outlining the Municipal State Aid Street System.
A Municipal State Aid Street (MSAS) can be selected based on the following criteria:
• The street is projected to carry a relatively heavier traffic volume or is functionally
classified as collector or arterial as identified on the urban immicipality's
functional classification plan.
• Connects the points of major traffic interest, parks, parkways, or recreational areas
within an urban municipality.
• Provides an integrated street system affording, within practical limits, a state aid
street network consistent with projected traffic demands.
With an approved system, which Cottage Grove has, State Aid funds can be used on these
designated roadways for construction and maintenance purposes. Designated routes can be
revised and removed from the system by a City Council Resolution. If no State Aid money has
been spent on these roadways, there is no penalty for removal. If State Aid money has been spent
at any time for construction of the roadway designated, revocation of the route will require
repayment to MnDOT for any fiends spent.
Background
MNDOT STATE AID PROGRAM
Mission Statement
The purpose of the State Aid program is to provide resources, from the Highway Users Tax Distribution
Fund, to assist local governments with the construction and maintenance of community- interest
highways and streets on the State Aid system.
Eligibility
To be eligible for State Aid funding, a city must have a population greater than 5,000 persons as
projected and documented by the Minnesota State Demographer's Office. As of June 2010, there are
144 MSAS cities that vie for the allocated MSA funds.
Funding
In Minnesota, revenue from the State's gas tax, license fees, motor vehicle sales tax, and interest are
deposited in the State's Highway Users Tax Distribution Fund. From the total collected, approximately
95% gets distributed between the Trunk Highway Fund (55 %), the County State Aid Highway Fund
(30 %), and the Municipal State Aid Street Fund (10 %).
The funds available in the Municipal State Aid Street account are divided between all State Aid cities as
a Population apportionment (50 %) and a construction `needs' apportionment (50 %). The population
apportionment distributes funds to cities on a pro -rata basis from highest population to the lowest. The
construction `needs' apportionment distributes funds on a pro -rata basis to cities with the greatest
`needs' to the least. Construction `needs' are defined by MNDOT as the estimated construction cost
required to improve a state -aid system to standards adequate for future traffic on a uniform basis.
MNDOT distributes each city's apportionment through two accounts, Maintenance and Construction.
The Maintenance account is typically 25% of the city's total apportionment. These payments are
received by the city in two equal payments on or around January 1 and July 1 of each year. The
remaining apportionment is deposited into a Construction account at the beginning of the year.
2011 Cottage Grove State Aid Total Apportionment: $1,328,883
Maintenance Account: $43,905
Construction Account: $1,284,978
Annual Requirements
Participation in the State Aid program includes several annual requirements:
Certification of Mileage
The Certification of Mileage is a form used to track and revise the total public mileage within the city
and determine the allowable 20% available to designate as State Aid streets. All new construction from
the previous year will be added to this form annually as well as any additions or revocations of State Aid
Streets.
Road Status Mapping
Road status mapping is reported for all new road construction and revisions completed within the year.
This information will match the certification of mileage and is used to update Statewide base maps.
Construction Needs'
Construction `needs' are tabulated to determine the estimated construction cost required to improve a
state -aid system to standards adequate for future traffic on a uniform basis over a lifecycle of 20 years.
For each designated route, existing and proposed information is collected. Based on this information,
quantities are tabulated into a cost based on unit prices determined by the Municipal State Aid Screening
Board. For construction `needs' apportionment purposes, MNDOT will sum the total `needs' of
segments that are deemed deficient by State Aid Standards. Deficient segments are typically those that
are greater than 20 years old or do not meet present geometric design standards. This information is
revised on an annual basis based on construction over the previous year to State Aid streets.
Traffze Volumes
State Aid cities are required by MNDOT to provide traffic volume information on a 2 -year cycle for
State Aid routes.
Discussion
The Ravine Parkway was identified in the City's Comprehensive Plan, Figure 6 -6, as a future major
collector. This is consistent with the traffic study that was completed for the East Ravine AUAR.
The first segment of the Ravine Parkway was added to the MSA System in 2002 and the final segment
to complete the Ravine Parkway as an MSAS was in 2010.
As part of the AUAR for the East Ravine, a technical memorandum was prepared by Howard R. Green
Company in June 2005 regarding the secondary traffic impacts of the east ravine community. In the
technical memorandum, Figure 3 -5, the future (2020) projected traffic volumes on Ravine Parkway
adjacent to the proposed Public Safety /City Hall was 7,500 ADT.
As part of the project development of the next phase of the Ravine Parkway, to serve the proposed
Public Safety /City Hall, an additional modeling exercise was done to evaluate the traffic projections of
the roadway based upon more detailed analysis of specific land uses. The result of the exercise was an
increase of the ADT to 8500 on Ravine Parkway and an ADT of 5000 on 85` Street South. The
projected traffic volumes clearly demonstrate that Ravine Parkway is a collector roadway.
The city utilized MSA dollars for the construction of the first phase of the Ravine Parkway. The City
has identified the remaining segments of the Ravine Parkway to utilize MSA funding for construction,
please see attached excerpt from the CIP on MSA Funded Projects.
HOUSE RESEARCH Short Subjects
Matt Burress Updated: October 2010
Municipal State -Aid Street System
The municipal state -aid street system is a collection of about 3,500 miles of key streets located in 144
Minnesota cities. The system constitutes less than 16 percent of all miles of city streets. Cities receive
financial assistance from the state for the construction and maintenance of those streets included in the
system. Assistance comes from a portion of constitutionally dedicated, transportation- related taxes. Based
on a statutory formula, the aid is distributed through a state -aid program administered by the Minnesota
Department of Transportation (MnDOT). Minn. Stat. § 162.13. The aid can only be expended on streets that
constitute part of the municipal state -aid street system. Total available funds for calendar year 2010
amounted to $130.7 million.
Constitutional and The Minnesota Constitution establishes a basic framework for state highway
statutory framework finance. It (1) dedicates funding to be "used solely for highway purposes" through
for state aid taxes on motor fuels, motor vehicle registration, and motor vehicle sales; (2)
establishes various accounting fiords, including a municipal state -aid street
(MSAS) fund for financial assistance to cities; (3) allocates tax revenues among
state, county, and municipal roads, so that the MSAS fiord receives 9 percent of 95
percent of those tax revenues constitutionally dedicated to streets and highways
(after some special allocations and transfers); and (4) establishes certain
requirements related to use of the funds and characteristics each highway system.
Minn. Const. art. XIV. State statutes further specify finance and policy elements
such as aid allocation formulas and requirements for cities to receive aid.
Eligibility and Within each city, the municipal state -aid street system is restricted to up to 20
requirements percent of the total miles of (1) the city's streets, plus (2) county highways located
within the jurisdiction of that city. City streets that were previously part of a state
trunk highway or a county highway system and were "turned back" to a city are
also included in the municipal state -aid street system and do not count against the
20 percent limit. Minn. Star. § 162.09.
Among the qualifications under the Minnesota Constitution for inclusion in the
system, a city must have a population over 5,000. Minn. Const. art. XIV.
(Chisholm fell below the population cutoff but is grandfathered in.) Smaller cities
having a population under 5,000 do not receive aid from the MSAS fund.
However, such cities are indirectly assisted through a separate program that funds
certain county highways: a portion of state funds for the county state -aid highway
system provided to each county must be allocated to a municipal account for
county state -aid highways located in smaller cities. Minn. Stat. § 162.08.
Distribution of State -aid funding is distributed on a calendar -year basis. MnDOT determines the
funds amount annually based on both tax receipts to date and estimates of receipts for the
remainder of that fiscal year. Apportionment amounts are released each January.
For calendar year 2010, total available MSAS funding was $130.7 million.
Funds were distributed as follows based on formulas and caps set in state law:
• $127.3 million apportioned by formula as direct aid to cities;
• $2.6 million to an administrative account for MnDOT expenses in
administering the state -aid program;
• $167,000 to a disaster account for unforeseen events resulting in undue
financial hardship; and
• $609,000 to a research account. Minn. Stat. §§ 162.12, 162.13.
Direct aid Money in the MSAS fund apportioned to cities via direct aid follows a Formula
allocation formula provided in statute, so that:
• 50 percent is divided proportionally based on the population of each city
(compared to the total for all cities); and
• 50 percent is divided proportionally based on the construction needs of
each city, which is the amount the city needs to bring all its municipal state -
aid streets up to state standards. Minn. Stat. § 162.13.
Analysis of aid Owing to the variety of cities having streets in the state -aid system, MSAS fund
apportionment distributions vary. Calendar year 2010 direct aid apportionments to cities ranged
from about $137,000 to over $11 million. The average allocation was $880,000,
with 31 cities receiving over $1 million a piece and I 1 cities receiving over $2
million. Obviously, because population is a key element of aid allocation, larger
cities tend to receive relatively greater amounts of funding. The following chart
groups cities based on amount of aid distributed.
70
60
m 50
40
0 30
maze,
10
MSAS Fund Direct Aid Distribution
CY 2010 ($127.3 million, 144 cities)
$ 135Kto $50OKto$1.OMto$1.5Mto$2.OMto Over
$500K $1.OM $1.5M $2.OM $2.5M $2.5M
Amount of Aid
Comparing 2009 to 2010 direct aid apportionments, all cities had an increase in
apportionment based on the population component of the funding allocation
formula, while 42 cities saw a decrease under the construction -needs component.
The net result was an aid decrease for ten cities and an increase for the remaining
134 cities. The largest net decrease was relatively modest, at about $28,000.
For more information: Contact legislative analyst Matt Burress at 651 - 296 -5045. Also see the House
Research publication Highway Finance Overview, November 2009,
The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative,
legal, and information services to the entire House.
House Research Department 1 600 State Office Building I St. Paul, MN 55155 1 651- 296 -6753 1 www.house.mn /hrd /hrd.htm
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