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<br />Memorandum <br /> <br />To: Bryan Bear, City Administrator <br /> City of Hugo <br /> <br />From: Liz Finnegan <br /> Senior Engineering Technician <br /> Mark Erichson, PE <br /> City Engineer <br /> <br />Date: 4/3/2025 <br /> <br />Re: 2025 Municipal State Aid System Revisions <br /> <br /> <br />The Municipal State Aid Street (MSAS) system allows cities with a population over 5,000 to be <br />eligible to receive additional funding for road improvements and maintenance from the State <br />Highway Users Fund. Each year, the City receives an allocation based 50% upon its population <br />and 50% upon the construction Needs of its roadways. To receive funding, the City can designate <br />up to 20% of its local streets to receive MSAS funding. The City has a total of 23.88 miles eligible <br />to designate. <br /> <br />Per State Aid Rules, a City is allowed to add and/or remove mileage annually, provided it meets <br />necessary criteria, if a letter request is submitted. If the proposed route is accepted by the State <br />Aid office, a formal council resolution adding it to the system is required prior to May 1st. <br /> <br />In an effort to maximize the construction Needs of Hugo’s MSAS system and with the goal of <br />strategically using the annual available allotment of State Aid funds to the City, we are <br />recommending the following modifications to the system (illustration attached): <br /> <br />• Revocation of Farnham Ave N from 149th St N to Oneka Parkway N <br />o Segment Length: 0.35 miles <br />• Addition of Goodview Ave N from Oneka Lake Blvd to 159th St N <br />o Segment Length: 1.07 miles <br />• Addition of 159th ST N from Goodview Ave N to T.H. 61 <br />o Segment Length: 0.14 miles <br /> <br />While the annual allotment that Hugo will receive from State Aid will fluctuate each year based on <br />gas-tax revenues received by the State, and by relative apportionments for population and the <br />Needs of all State Aid cities throughout the State, the proposed revisions are anticipated to result <br />in the City maximizing its available designation mileage, which will in turn maximize the State Aid <br />Needs dollars that are allocated to the City. It should be noted that, year to year, there is no <br />guarantee that the annual allotment received by any city will increase. <br /> <br />MnDOT State Aid staff approved the requested proposed revisions on April 2, 2025. The City <br />Council must now pass a formal resolution to finalize the proposed routes and submit that <br />resolution to MnDOT’s State Aid office prior to May 1, 2025. This will be used in the calculation <br />for our 2026 allotment. It is the City Engineer’s recommendation that City Council approve the <br />attached resolution and direct staff to submit per MnDOT requirements. <br /> <br />If you have any questions regarding this, please don’t hesitate to contact me at 651-762-6316.