HomeMy WebLinkAbout6F - Dedicated State Funding for City Streets U
4646 Dakota Street SE
'�rnvsso��' Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 9, 2015
AGENDA#: 6F
PREPARED BY: LARRY POPPLER, CITY ENGINEER/INSPECTIONS DIRECTOR
PRESENTER: LARRY POPPLER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION SUPPORTING
DEDICATED STATE FUNDING FOR CITY STREETS
DISCUSSION: Introduction
On behalf of Minnesota Cities, the League of Minnesota Cities (LMC) has
been lobbying the State Legislature for addition city street funding.
History
The League has developed a model resolution supporting "an omnibus
transportation funding bill that provides additional dedicated state funding
for local city streets including funding that can be used for non-municipal
state aid (MSA) city street maintenance, construction, and reconstruction."
The League's Board of Directors passed a similar resolution demonstrating
support for new dedicated state funding for city streets at its meeting on
Feb. 19th, 2015. The resolution is aimed at formalizing a directive enacted
by the Board in January. The League's resolution will be presented to
legislators, Gov. Dayton, and other stakeholders. For more information on
this initiate, please visit the League of Minnesota Cities website at
www.Imc.org.
Current Circumstances
LMC is encouraging Minnesota Cities to pass similar resolutions and then
giving these resolutions to LMC, legislators, and the governor. Attached to
this report is a sample resolution prepared by LMC.
The outcome of this discussion at the legislature could be one of the
following:
1) Legislation allowing Cities to designate "street improvement districts"
within their City
2) Legislation raising State Aid allocations to cities
3) Legislation creating a new program for state assistance on the local
street systems
4) Allocation of state surplus toward city streets
Conclusion
Additional tools to support city street maintenance and reconstruction
would be helpful in programming reconstruction projects and maintenance
activities on local city streets. City Staff recommends approval of the
attached resolution.
Phone 952.447.9800 / Fax 952.447.4245/www.cityofpriorlak-e.com
ISSUES: As discussed during our CIP planning process and pavement management
discussions, the best value to taxpayers is to properly maintain and
improve our roadways at the right time during its life cycle. With proper
maintenance at the appropriate time, City streets can last for 50 years.
Considering that the City owns over 100 miles of City streets,
reconstruction of 2 miles per year is needed to keep up with street
degradation. In addition to reconstruction, the City must also perform other
maintenance activities at the appropriate time to achieve the 50 year life
cycle.
FINANCIAL The City of Prior Lake's Municipal State Aid account has a negative
IMPACT: balance. In addition, the City also plans on borrowing an additional
$1,400,000 on our State Aid account for the 150th Street and TH 13 project
and the Duluth Avenue and TH 13 project. Much of the City State Aid
allocation is utilized on the Trunk Highway or County State Aid Highway
systems and not on local City State Aid streets.
As discussed at the February 9, 2015 work session, the City of Prior Lake
is facing a possible tax levy over$10,000,000 in 2015 for transportation
projects.
ALTERNATIVES: 1) Approve a resolution supporting dedicated state funding for City streets.
2) Deny this item for a specific reason and provide Staff with direction.
3) Table this item until some date in the future.
RECOMMENDED Motion and Second to approve Alternative#1
MOTION:
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4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 15-xxx
A RESOLUTION SUPPORTING DEDICATED STATE FUNDING FOR CITY STREETS
Motion By: Second By:
WHEREAS, Minnesota contains over 141,000 miles of roadway, and over 22,500 miles—or 16
percent—are owned and maintained by Minnesota's 852 cities; and
WHEREAS, almost 85 percent of municipal streets are ineligible 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; 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, for every one dollar spent on maintenance,a road authority--and therefore taxpayers--save
seven dollars in repairs; and
WHEREAS, cities need greater resources, including an additional dedicated state funding source for
transportation, and flexible policies in order to meet growing demands for street
improvements and maintenance.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City of Prior Lake supports 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.
PASSED AND ADOPTED THIS 9T" DAY OF MARCH 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ ❑ ❑ ❑
Nay ❑ ❑ ❑ ❑ ❑
Abstain ❑ ❑ ❑ ❑ ❑
Absent ❑ ❑ ❑ ❑ ❑
Frank Boyles, City Manager
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