County Transportation Systems

Association of MN Counties, MN County Engineers Association, MN Inter-County Association

Presentation to MN Senate Transportation CommitteeFebruary 11, 2013

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Minnesota Roadways Comparison of System Miles and Traffic Volume-2006

Total Local Share

120,629 miles89.1%40.7% VMT

Total County Share

45,000 miles33.5% 24.7% VMT

Source:

Mn/DOT TrafficData and Analysis

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County System:County State Aid System (CSAH)

◦30,600 miles of roadway - 67% of total county mileage

County Roads◦14,500 miles of roadway, 33% of mileage

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Highway User Tax Distribution Fund (HUTDF)

Main Revenue Sources Gas Tax – roads and bridgesLicense Tab Fees – roads and bridgesMotor Vehicle Sales Tax (MVST)

◦60% roads ◦40% transit (36% metro, 4% rural)

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Highway User Tax Distribution Fund (HUTDF) Breakdown62% - Trunk Highway Fund29% - County State Aid Fund (CSAH)9%- Municipal State Aid (MSA)

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CSAH Distribution of FundsApportionment Formula– “old money”

10% equal to all counties10% proportional based on vehicle

registration30% based on county lane miles50% county construction needs

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CSAH Distribution of FundsExcess Formula– “new” money from

2008 bill40% vehicle registrations60% needs

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County Roads – 14,500 milesNot eligible for CSAH funds

Primary Revenue SourceProperty Taxes

Possible other sources:Wheelage Tax (metro only)Aggregate Tax

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Federal Funds◦$100 million annually◦Distributed by the 8 Area Transportation

Partnerships (ATP)◦“Major Collectors” and above are eligible for

federal funding. 59% of CSAH system eligible 42% of CSAH and County Roads combined eligible Bridges

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Faribault County Construction History Map

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Anticipated General Revenues Annual Estimated RevenueCounty Levy / County Program Aid $5.2 million / $4.9 millionWheelage Tax Funds $1.7 millionGravel Tax Funds $0.2 millionCounty State Aid Highway (CSAH)* $10.0 millionCity Cost Share Participation $7.0 millionRegional Railroad Authority Levy $1.6 million

$25.7 million / 30.6 million* Includes Flexible Highway Account and Leased Motor Vehicle Sales Tax Revenues

Project Specific Annual Estimated RevenueFederal Aid $5.0 millionState Trunk Highway Funds $2.5 millionState Bridge Bond Funds $0.2 million

$7.7 million

TOTAL $33.4 million / $38.3 million18

Dakota County Funding Summary

Total Thru 2030 2004 Plan 2012 Plan

Needs $1 billion $1.253 billion

Revenue $600 million $658 million

Shortfall $400 million $595 million19

Local Response to ChallengesLocal property tax levies applied to road

and bridge construction and maintenance have increased steadily

Increased dependence on borrowing as a finance strategy

Deferred projects and maintenance

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State Response to Challenges - Bonding

Addition of the Local Road Improvement Program◦Last year $10M

Local Bridge Bonding◦Last year $30M

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State Response – Chapter 152Gas Tax Increase – 8.5 centsTab Fee Increase – removed capMVST 60%/40% split roads/transitConstitutionally Dedicated

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Solution – Leverage Constitutionally Dedicated Streams

Increase State Aid and other targeted state funding – gas tax, tab fees, motor vehicle sales tax

Sales tax on gas- not constitutionally dedicated but automatically indexes

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Bonding – General Obligation and Truck Highway◦Low Interest Rates◦Lack of options in many Greater MN Counties◦Could especially help with ten ton roads◦Trunk Highway Bonds – more revenue would

raise bonding capacity

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2013 AMC Legislative Initiatives◦New revenue, a balanced, comprehensive

package◦Local Government Tools:

Expanding wheelage tax statewide Removing the referendum requirement for the

Greater MN Sales Tax for local roads and bridges

Contact: Abbey Bryduck abryduck@mncounties.org (651) 789-4339