01-08-2025 Workshop Packet - Laserfiche WebLink

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TP-10 FUNDING FOR NON-MUNICIPAL STATE AID (MSAS) CITY STREETS TP-11 COUNTY STATE AID HIGHWAY (CSAH) DISTRIBUTION FORMULA Balancing the needs of the MAC, the business community, and the airport host cities and their residents requires open communication, planning and coordination. Cities must be viewed as partners with the MAC in resolving differences that arise out of airport projects and the development of adjacent parcels. Regular contact between the MAC and cities throughout a project proposal process will enhance communication and problem solving. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP. Metro Cities supports noise abatement programs and expenditures and the work of the Noise Oversight Committee to minimize the impacts of MAC operated facilities on neighboring communities. The MAC should determine the design and geographic reach of these programs only after a thorough public input process that considers the priorities and concerns of impacted cities and their residents. The MAC should provide full funding for noise mitigation for all structures in communities impacted by flights in and out of MSP. Cities under 5,000 in population are not eligible for Municipal State Aid. Cities over 5,000 residents have limited eligibility for dedicated Highway User Tax Distribution Fund dollars, which are capped by the state constitution as being available for up to twenty percent of streets. Current County State Aid Highway (CSAH) distributions to metropolitan counties are inadequate to provide for the needs of smaller cities in the metropolitan area. Cities need long-term, stable, funding for street improvements and maintenance. In 2023, the Legislature established the Transportation Advancement Account which distributes revenue from the retail delivery fee and the auto parts sales tax to counties, cities, townships, and a food delivery support account. Specifically, this account will distribute 27 percent of the revenue collected to cities under 5,000 in population and 15 percent to cities over 5,000 in population. Metro Cities supports the distribution of revenue deposited into the Transportation Advancement Account to cities, providing sustainable funding for non-MSAS city streets. Metro Cities supports additional resources and flexible policies to meet local infrastructure needs and increased demands on city streets. Significant resource needs remain in the metropolitan area CSAH system. Revenues provided by the Legislature for the CSAH system have resulted in a higher number of projects being completed. However, greater pressure is being placed on municipalities to participate in cost sharing activities, encumbering an already over-burdened local funding system. When the alternative is not building or maintaining roads, cities bear not only the costs of their local systems but also as much as fifty percent of county road projects. 35