2019.01.23 CC Packet - Goal Setting Session

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Transportation 5-C Transit Financing The Twin Cities metropolitan area is served by a comprehensive regional transit system that is expanding to include rail transit and dedicated busways. Shifting demographics in the metropolitan region will mean increased demand for transit in areas with and without current transit service. Metro Cities supports stable and growing 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 currently have insufficient transit options. MVST revenue projections are unpredictable, and the Legislature has repeatedly reduced general fund support for Metro Transit. Thus, regional transit providers continue to operate at a funding deficit. Operating subsidies necessary to support a regional system should come from regional and statewide funding sources and not local property taxpayers. In addition, capital costs for the expansion of regional transit system should be supported through state and regional sources, and not the sole responsibility of local units of government. Metro Cities continues to support an advisory role for municipal officials in decisions associated with local transit projects. 5-D Street Improvement Districts Funding sources for local transportation projects are limited to the use of Municipal State Aid Street Program (MSAS), property taxes and special assessments. In addition, cities under 5,000 in population are not eligible for MSA. With increasing pressures on city budgets and limited tools and resources, cities are finding it increasingly difficult to maintain aging streets. Street improvement districts allow cities in developed and developing areas to fund new construction as well as reconstruction and maintenance efforts. The street improvement district is designed to allow cities, through a fair and objective fee structure, to create a district or districts within the city in which fees are raised on properties in the district and spent within the boundaries of the district. Street improvement districts would also aid cities under 5,000 with an alternative to the property tax system and special assessments. Metro Cities supports the authority of local units of government to establish street improvement districts. Metro Cities also supports changes to special assessment laws to make assessing state-owned property a more predictable process with uniformity in the payment of assessments across the state. 5-E Highway Turnbacks & Funding Cities do not have the financial capacity, other than through significant property tax increases, to absorb additional roadway responsibilities without new funding sources. The existing municipal turnback fund is not adequate based on contemplated turnbacks. Metro Cities supports jurisdictional reassignment or turnback of roads (M.S. 161.16, Subd. 4), on a phased basis using functional classifications and other appropriate criteria subject 2019 Legislative Policies 53