01-08-2025 Workshop Packet - Laserfiche WebLink

Home Browse Search

TP-3 TRANSIT FINANCING Suburban transit providers are concerned that funding challenges may be used to attempt to justify a repeal of their authorizing legislation and to consolidate transit services into a single regional entity. This would result in reverting to conditions existing nearly 40 years ago when inadequate service caused twelve suburbs to elect not to be part of the traditional transit system. In the interest of safety and traffic management, Metro Cities supports further study of rail safety issues relating to water quality protections, public safety concerns relating to derailments, traffic implications from longer and more frequent trains and the sensitive balance between rail commerce and the quality-of-life impacts on the communities through which they pass. Shifting demographics in the metropolitan region will mean increased demand for various modes of transit in areas with and without current transit service. MVST revenue projections are unpredictable, and the Legislature has repeatedly reduced general fund support for Metro Transit, which contributes to persistent operating deficits for regional transit providers. Operating subsidies necessary to support a regional system should come from regional and statewide funding sources and not local taxpayers. Until recently, state and regional resources for transit had diminished, with costs shifting to local taxpayers in the metropolitan area. A system of transit provides significant economic benefits to the state and metropolitan region and must be supported with state and regional revenue sources. In addition, capital costs for the expansion of the regional transit system should be supported through state and regional sources, and not the sole responsibility of local units of government. In 2023, a 0.75% regional sales and use tax in the seven- county metropolitan region was established to provide funding for transit operations, maintenance, and capital projects. Metro Cities supports stable and predictable state and regional revenue sources to fund operating and capital expenses for all regional transit providers and Metro Mobility at a level sufficient to meet the growing operational and capital transit needs of the region and to expand the system to areas that lack sufficient transit service options. Metro Cities continues to support an advisory role for municipal officials in decisions associated with local transit projects. Metro Cities supports the early engagement of local governments in transit project planning and development including project scoping, cost estimating, funding requests and coordination with overlapping initiatives to achieve successful corridor-based projects. To promote stable and predictable distribution of Regional Transportation Sales and Use Tax receipts, Metro Cities supports a collaborative process by which the Metropolitan Council includes stakeholders in the creation of policy guiding the distribution of funds. Metro Cities supports the creation of a city allocation from the Regional Transportation Sales Tax to aid cities with local transportation infrastructure. 32