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Small Cities Assistance Program <br />Program Overview <br />The Small Cities Assistance Program was created in <br />2015 to provide funding for construction and <br />maintenance of roadways in cities with a population <br />less than 5,000. Minnesota Statute 162.145 provides <br />details on the program. The program is administered <br />by MnDOT's State Aid for Local Transportation Division <br />with the funding distributed by the Minnesota <br />Department of Revenue. <br />Program Guidance and Criteria <br />Guidance <br />Eligible local agencies include cities that do not receive municipal state aid under Statutes 162.09 to <br />162.14. This primarily includes all cities that have a population of 5,000 or less. <br />The Commissioner of Revenue distributes the funds to cities in the same manner as local government <br />aid under chapter 477A. Generally, cities will receive 50% of the payment in July and 50% of the <br />payment in December. For 2015 payments, the December amount will be slightly different from the <br />July amount due to a recalculation after the July payments had been made. <br />Criteria <br />The preliminary aid to each city is calculated as follows: <br />• 5% equally allocated to all cities <br />• 35% allocated based on each city's share of lane miles of municipal streets compared to the <br />total municipal lane miles of all eligible cities <br />• 35% allocated based on each city's share of population compared to the total population of all <br />eligible cities <br />25% allocated based on each city's share of the state aid adjustment factor compared to the <br />sum of the state aid adjustment factor for all eligible cities <br />o The state aid adjustment factor is the greater of zero or: <br />■ 0.005 minus <br />■ The number of lane miles of county state aid highway in a city compared to the <br />total lane miles of county state aid highways in eligible cities <br />26 <br />