Adopt Resolution #19-073 Requesting Comprehensive Transportation Funding

The League of Minnesota Cities recently issued a Legislative Action Alert to mayors, councilmembers, city administrators, public works directors or city engineers who may support increased transportation funding including a League initiative aimed at securing street improvement district authority.  The League is requesting help in the form of letters and resolutions of support to the authors of this legislation. The opposition has aggressively lobbied against advancing this bill, and support is needed to keep the bill viable in 2019.

This resolution is consistent with recent legislative priorities in regard to the importance of transportation funding.

Key Points:

• Existing funding mechanisms for street maintenance and reconstruction are inadequate. Special assessments can be onerous to property owners and are difficult to implement for some cities.
• Municipal state aid (MSA) is limited to cities over 5,000 population--148 of 853 cities in Minnesota--and cannot be applied to more than 20% of a MSA city's lane miles. Existing MSA is not keeping up with needs on the MSA system.
• This is enabling legislation. No city would be required to create a municipal street improvement district.
• This authority would provide a funding mechanism that is fair. It establishes a clear relationship between who pays fees and where projects occur, but stops short of the benefit test that sometimes makes special assessments vulnerable to legal challenges. It also does not prohibit cities from collecting fees from tax exempt properties within a district.
• This tool allows cities to perform maintenance and reconstruction on schedule. Timely maintenance is essential to preserving streets and thereby protecting taxpayer investments.
• This tool would allow property owners to fund expensive projects by paying relatively small fees over time. The tool could be used to mitigate or eliminate the need for special assessments.

The resolution recognizes broad-based support for transportation funding and includes transit funding in the text.

If passed, this legislation would provide options for local road funding.

It is recommended that the Council adopt Resolution #19-073 Requesting Comprehensive Transportation Funding

Motion to Adopt Resolution #19-073 Requesting Comprehensive Transportation Funding