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Home My WebLink About4D, Resolution Supporting League of MN Cities Transportation Funding Policy ~ ~~HILLS City Council Agenda Packet Item: ~ ~HILLS Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: Noah A Simon A<imhlistration February 25,.21:)08 February_ 25, 2008 Agenda Item: Budgeted Amount: Actual Amount: Funding Source: ~t9~i.iRc,i,_,A@qrFi3~qQ~!~ 'Molion' tCl ci'pp'rove 'the League of Minnesota Cities resolution Requesting Comprehensive Road and Transit Funding Sfiift;'ReC6mm~Hdaiioo';- ........................__......... .......................m........_." Staff recommends Council approve the resolution Requesting Comprehensive Road and Transit Funding Planning: PTRC: Supporting Documents: (attached) X Memo/Letter: X Resolution No.: Ordinance No.: Engineering Recommendation: Attorney Recommendation: X Other: Memo from Jim Willis to Council Resolution Requesting Comprehensive Road and Transit Funding Background material from the league of Minnesota Cities ~ ~HILLS MEMORANDUM DATE: February 25, 2008 TO: City Councilmembers FROM: Jim Willis, Interim City Administrator SUBJECT: League of Minnesota Cities 2008 Transportation Funding policy Statement and Resolution ReQuested Action Adopt the League of Minnesota Cities Resolution Requesting Comprehensive Road and Transit Funding. Background From the League's web site--The League urges cItIes to adopt resolutions calling for the Minnesota Legislature to pass and Gov. Pawlenty to sign-or allow to become law without his signature--a permanent increase in dedicated funding for state and local road, bridge, and transit systems in Greater Minnesota and the Metropolitan Area. The League's resolution acknowledges and supports a more comprehensive approach to transportation funding, which includes, but is not limited to, bonding. Given the importance of transportation funding and the likelihood that this will be a prominent issue in the 2008 legislative session, the League urges [Arden Hills to pass this...resolution and to convey that support to your legislators. The League's resolution supports: . An increase in the gas tax. . Indexing of the gas tax, provided there is a limit on how much the tax can be increased for inflation in a given amount of time. . Increases in vehicle registration taxes (a.k.a. license tab fees). · Trunk highway bonding, provided the Legislature implements reasonable restrictions on the amount of debt service the state will incur and provided the Legislature appropriates funding to assist with local costs related to projects funded with trunk highway bonds. . General obligation bonding for local roads and bridges, particularly for roads of regional significance and to assist with local cost participation requirements pertaining to trunk highway projects. . Sales tax exemptions for state and local transportation construction projects. . New local funding tools, such as local option sales tax authority or authority to establish street improvement districts. 2 League of Minnesota Cities 2008 Transportation Funding Policy Statement Issue: The League of Minnesota Cities recognizes that all Minnesota residents and businesses benefit from a sound transportation system that offers diverse modes of travel. Current funding for roads, bridges and transit systems across all government levels in the state is inadequate, and Minnesota's transportation system is failing to meet needs pertaining to public safety, population growth and economic development. Due to funding challenges, the state has delayed regionally significant road construction and reconstruction projects. Urban areas are experiencing growing congestion and are lagging behind other regions in making transit investments. Rural roads are not being upgraded to meet modern safety standards and are not serving the needs of industries that depend on the ability to transport heavy loads. Local roads, bridges, sidewalks and trails are critical components of Minnesota's transportation infrastructure. Cities, like the state, have inadequate resources to preserve and reconstruct aging transportation infrastructure, and to build transportation infrastructure to serve new development. Existing funding mechanisms such as municipal state aid (MSA), special assessments and bonding have limited applications, making it difficult for cities to address growing needs. Further, as the state funding shortfall has grown, the trunk highway project cost participation requirements imposed on local units of government have increased dramatically. This burden has been exacerbated by the state's use of trunk highway bonds as a funding source, because under Minnesota's constitution, trunk highway bond dollars cannot be spent on local components of trunk highway projects, and the bond dollars are not distributed through the Highway User Tax Distribution Fund formula. Cost participation requirements put added pressure on local budgets, contribute to property tax increases and divert local resources from the over 39,000 lane miles in Minnesota under municipal jurisdiction. Response: More resources must be dedicated to all components of the state's transportation system, and local units of government must have access to resources and funding tools to meet growing needs. The League of Minnesota Cities supports the following: . acceleration of the phase-in of the constitutional dedication of 100 percent of the motor vehicle sales tax (MVST) to transportation purposes; . MVST distribution of 60 percent for roads and bridges, and 40 percent for transit; . dedication of the sales tax on leased vehicles to transportation purposes; . a permanent increase in the gas tax; . iudexing of the gas tax, provided there is a limit on how much the tax can be increased for inflation in a given amount of time; . increases in vehicle registration taxes (tab fees); . trunk highway bonding, provided the Legislature implements reasonable restrictions on the amount of debt service the state will incur, and provided the Legislature appropriates funding to assist with local costs related to projects funded with trunk highway bonds; . general obligation bonding for local roads and bridges, particularly for routes of regional significance; . a sales tax increase to fund transportation needs; · funding to assist cities burdened by cost participation responsibilities imposed by improvement projects on the state's principal arterial system and on the county state aid highway (CSAH) system; · funding for transportation components of economic development and redevelopment projects of regional significance; · full funding for all components of state highway projects, including related stormwater management systems, through state sources; · funding to build roads to standards that can accommodate the year-round transport of heavy loads; . a sales tax exemption for materials purchased for state and local road, bridge, sidewalk, trail and transit construction projects; . authority for cities to impose development impact fees; and · local funding options that would allow cities to raise revenues for roads, bridges, sidewalks, trails and transit. Adopted by League of Minnesota Cities Board of Directors on November 29,2007. Contact: Anne Finn, Assistant Intergovernmental Relations Director, 651-281-1263 or e-mail afinn@lmc.orz. 2 A RESOLUTION REQUESTING COMPREHENSIVE ROAD AND TRANSIT FUNDING WHEREAS, all Minnesota communities benefit from a sound, efficient and adequately funded transportation system that offers diverse modes of travel; and WHEREAS, the integrity of Minnesota's transportation infrastructure is dependent upon long-term planning and ongoing maintenance, both of which require dedicated and sustainable revenue sources; and WHEREAS, Minnesota leaders have not increased dedicated funding levels for roads, bridges and transit systems to keep pace with growing costs and changing needs; and WHEREAS, transportation analysts in consultation with the Minnesota Department of Transportation (MnDOT) estimate Minnesota will have to invest an additional $1.5 billion per year in transportation infrastructure for the next ten years in order to meet identified needs on Minnesota's state highways and bridges, county roads, city streets, metro and rural transit systems and local bridges; and WHEREAS, Minnesota's transportation system is failing to meet the capacity needs necessary to sustain population growth and promote economic development; and WHEREAS, congestion, inefficient transportation systems and lack of transportation choices lead to greater dependence on foreign oil, increased environmental degradation, and economic disadvantages for Minnesota's businesses and residents; and WHEREAS, many rural roads are not built to modem safety standards and are not meeting the needs of industries that depend on the ability to transport heavy loads; and WHEREAS, local cost participation requirements for trunk highway and county projects are onerous and are contributing to strains on city budgets; and WHEREAS, transportation infrastructure maintenance and improvement costs significantly contribute to rising property taxes; and WHEREAS, insufficient state funding has delayed regionally significant road construction and reconstruction proj ects across Minnesota; and WHEREAS, current funding for roads, bridges and transit systems across all government levels in Minnesota is inadequate, and this under-investment diminishes quality oflife for Minnesota residents and hinders Minnesota's progress as a national business, economic and civic leader. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ARDEN HILLS that this Council requests that the Minnesota Legislature pass a comprehensive and balanced transportation funding package that permanently increases dedicated funding for transportation; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF ARDEN HILLS that this Council requests that Governor Tim Pawlenty allow a comprehensive and balanced transportation funding package that permanently increases dedicated funding for transportation that is passed by the Legislature to become law; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF ARDEN HILLS that this Council requests that a comprehensive and balanced transportation funding package be based upon multiple revenue sources, which may include but not be limited to general obligation and trunk highway bonds; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF ARDEN HILLS that this Council supports funcling options including, but not limited to, the following: . An increase in the gas tax; . Indexing of the gas tax, provided there is a limit on how much the tax can be increased for inflation in a given amount oftime; . Increases in vehicle registration taxes (a.k.a. license tab fees); . Trunk highway bonding, provided the Legislature implements reasonable restrictions on the amount of debt service the state will incur and provided the Legislature appropriates funding to assist with local costs related to projects funded with trunk highway bonds; . General obligation bonding for local roads and bridges, particularly for roads of regional significance and to assist with local cost participation requirements pertaining to trunk highway projects; . Sales tax exemptions for state and local transportation construction projects; and . New local funding tools, such as local option sales tax authority or authority to establish street improvement districts; and BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF ARDEN HILLS that this Council defines a comprehensive and balanced transportation funding package as an initiative that permanently increases dedicated funding for state and local road and transit systems in Greater Minnesota and the Metropolitan Area. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 25th DAY OF FEBRUARY, 2008. Stanley D. Harpstead, Mayor ATTEST: Noah A. Simon, Deputy Clerk