HomeMy WebLinkAbout2C, State Aid Discussion EN HILLS
Request for Council Review 2C
Prepared By: Terry Maurer,Public Works Director Work Session Date: December 19,2011
Municipal State Aid System Update
Old Snelling Avenue Improvement
Discussion Topic:
Staff is looking for direction on the Old Snelling Avenue project and is available to answer any questions regarding
the MSA system.
Supporting Documents:
1. Memorandum dated December 19,2011,from Terry Maurer,Public Works Director.
2. Minnesota Department of Transportation- SAAS Status Report
3. Map of existing State Aid routes.
EN HILLS
MEMORANDUM
DATE: December 19, 2011
TO: Honorable Mayor and City Councilmembers
Patrick Klaers,City Administrator „,
FROM: Terry Maurer, Public Works Director �,�
SUBJECT: Municipal State Aid System Update
Old Snelling Avenue Improvement
Background
At a recent discussion of transportation issues the Council asked for a list of projects for
which Municipal State Aid (MSA) funds could be used as a funding source. Staff
thought it may be worthwhile providing a brief explanation of the overall MSA system.
So here are some general points on how the MSA system is set up and operates:
1. The MSA system was started in the 1950's and is used to distribute the Highway
Users Tax Distribution Fund (basically gas tax and some other minor funding
sources)to local governments.
2. The distribution is established constitutionally as 62% Mn/DOT; 29% counties
and 9% cities. In 2011 the City's 9% amounted to $139,081,139. Any city with
a population over 5,000 is eligible to participate. In 2011 there were 147 eligible
cities, 83 in the metro area and 64 outstate.
3. The City's 9% is distributed in two ways. Half is distributed based on population
of the 147 eligible cities (in 2011 each person was worth $18.80). The other half
is distributed by what is known as "needs". Needs are roughly a calculation of
how much it would cost to build out the entire system today. In 2011, total needs
for the entire system were $5,239,406,230, Arden Hills' total needs in 2011 were
$8,012,390. From a distribution standpoint each$1,000 of needs received $13.27
in 2011. Arden Hills' total apportionment in 2011 was $304,067.
4. Each city's annual apportionment is then divided into Maintenance and
Construction Funds. From a maintenance standpoint each city must take a
minimum of$1,500 per State Aid mile up to a maximum of 25% of the annual
distribution (35% can be requested but requires documentation as to how the
money was spent). Arden Hills takes 25% of the annual distribution for
maintenance. The Maintenance Funds are sent directly to the city in three
installments during the year. The remaining annual allotment goes into the
Construction Fund which is held at the State until a State Aid approved plan is
bid and the contract awarded.
City Council Meeting
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5. Approximately 20% of each eligible city's total street mileage may be designated
as State Aid routes. Every year every city submits a Certification of Mileage to
Mn/DOT; as the city's total street mileage grows more State Aid routes may be
designated. In 2011 Arden Hills had 7.53 miles designated as State Aid routes
(see attached map). Throughout the State there was a total of 3,583.87 miles
designated in 2011.
6. State Aid designated routes must begin and end on another State Aid route, a
County State Aid Highway (CSAH) or a Trunk Highway. Routes must be
approved by the Commissioner of Transportation prior to being added to the
system.
7. The City's Construction Funds may be spent on their own State Aid routes,
CSAH or Trunk Highways.
Arden Hills Potential Proiects
Potential projects in the City's CIP that could use some or all MSA Construction Funds
would include the following:
1. Old Snelling Avenue reconstruction including the bridge replacement and a
detached trail
2. City cost share for the US 10/Hwy 96 project(some minor costs may not be MSA
eligible)
3. County Road E (B-2) streetscaping (sidewalks, landscaping, street lighting are
eligible; decorative fencing, benches etc. may not be funded with MSA
Construction Funds)
4. Detached trails/sidewalks along Old Highway 10 and/or County Road E/Lake
Johanna Blvd
5. Mounds View High School detached trail from the bridge over I-35W to MVHS
along Valentine Lake Road
6. Noise walls along trunk highways
7. Detached trails along Valentine Lake Road and Old Highway 10 associated with
Valentine Park improvements
8. Any City cost share associated with the County Road E Bridge over TH 51
replacement
9. Any City cost share associated with the Ramsey County improvement on
Lexington Avenue north of 1-694
Current Status of City's MSA Account
Attached is an MSA status report as of December 6, 2011, for Arden Hills. As can be
seen from the top line "90-MUNI CONST" the City started 2011 with $840,498.03. We
received a 2011 allocation of $228,050 and used $119,547.45 for the CP Rail project
giving us a year-end total in our Construction Fund of $949,000.58. In approximately
February 2012 the City will receive the next allotment estimated at $216,000 for a total
Construction Fund balance of$1,165,000.
City Council Meeting
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Every year there is a minor negative adjustment to our allotment because we have a large
balance relative to our annual allotment. The unencumbered balance in our account is
subtracted from our needs total before our pro-rata needs amount is calculated. As stated
above, each $1,000 of needs results in an annual allotment of $13.27 in 2011. So if
$1,165,000 were deducted from our needs it would result in reduction of our annual
allotment of$15,459.55 ($t,165,000/$1,000 X$13.27).
Once a city reaches an unencumbered fund balance of three times their January
construction allotment and $1,500,000, the negative adjustments become much more
severe. Arden Hills is approaching this level but will not be hit by this negative
adjustment in 2012.
The MSA system also has positive incentives built in for cities that use their MSA funds.
The negative needs adjustment described above is redistributed to cities with less than
one times their January construction allotment.
Also, the MSA system allows cities that have spent all their Construction Funds to ask for
an interest free loan from the General Construction Fund pool. Cities can ask for five
times their annual construction allotment or $4,000,000, whichever is less. This would
allow Arden Hills to apply for approximately a $1,000,000 interest free loan should we
have MSA eligible projects and not enough funds. These loans are paid back
automatically from future year's allotments.
Old Snelling Avenue Project
The reclaiming of Old Snelling Avenue from County Road E to TH 51 is in the 2012
CIP. If the City Council wants this project undertaken in 2012 it is important that the
Feasibility Study/Public Hearing process be started now. Since we have all the
preliminary topography and geotechnical information from the December 2010 Scoping
Document the preparation of plans can wait. The other option would be to wait until
2014 (after the grade separation project at US 10/Hwy 96) and do the road and bridge at
the same time.
Council Action Requested
Staff is looking for direction on the Old Snelling Avenue project. Staff is also available
to answer any questions regarding the MSA system.
City Council Meeting
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