1. County Transportation Systems Association of MN Counties, MN County Engineers Association, MN Inter-County Association Presentation to MN Senate Transportation Committee February 11, 2013

2. 2 Minnesota Roadways Comparison of System Miles and Traffic Volume-2006 Total Local Share 120,629 miles 89.1% 40.7% VMT Total County Share 45,000 miles 33.5% 24.7% VMT Source: Mn/DOT Traffic Data and Analysis

3. County System: County State Aid System (CSAH) County State Aid System (CSAH) ◦30,600 miles of roadway - 67% of total county mileage County Roads County Roads ◦14,500 miles of roadway, 33% of mileage 3

4. Highway User Tax Distribution Fund (HUTDF) Main Revenue Sources Gas Tax – roads and bridges Gas Tax – roads and bridges License Tab Fees – roads and bridges License Tab Fees – roads and bridges Motor Vehicle Sales Tax (MVST) Motor Vehicle Sales Tax (MVST) ◦60% roads ◦40% transit (36% metro, 4% rural) 4

5. Highway User Tax Distribution Fund (HUTDF) Breakdown 62% - Trunk Highway Fund 62% - Trunk Highway Fund 29% - County State Aid Fund (CSAH) 29% - County State Aid Fund (CSAH) 9%- Municipal State Aid (MSA) 9%- Municipal State Aid (MSA) 5

6. CSAH Distribution of Funds Apportionment Formula– “old money” 10% equal to all counties 10% equal to all counties 10% proportional based on vehicle registration 10% proportional based on vehicle registration 30% based on county lane miles 30% based on county lane miles 50% county construction needs 50% county construction needs 6

7. CSAH Distribution of Funds Excess Formula– “new” money from 2008 bill 40% vehicle registrations 40% vehicle registrations 60% needs 60% needs 7

8. County Roads – 14,500 miles Not eligible for CSAH funds Primary Revenue Source Property Taxes Property Taxes Possible other sources: Wheelage Tax (metro only) Wheelage Tax (metro only) Aggregate Tax Aggregate Tax 8

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10. Federal Funds 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 10

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13. Faribault County Construction History Map

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18. Anticipated General RevenuesAnnual Estimated Revenue County Levy / County Program Aid$5.2 million / $4.9 million Wheelage Tax Funds$1.7 million Gravel Tax Funds$0.2 million County State Aid Highway (CSAH)*$10.0 million City Cost Share Participation$7.0 million Regional Railroad Authority Levy$1.6 million $25.7 million / 30.6 million * Includes Flexible Highway Account and Leased Motor Vehicle Sales Tax Revenues Project SpecificAnnual Estimated Revenue Federal Aid$5.0 million State Trunk Highway Funds$2.5 million State Bridge Bond Funds$0.2 million $7.7 million TOTAL$33.4 million / $38.3 million 18

19. Dakota County Funding Summary Total Thru 20302004Plan2012 Plan Needs$1 billion$1.253 billion Revenue$600 million$658 million Shortfall$400 million$595 million 19

20. Local Response to Challenges Local property tax levies applied to road and bridge construction and maintenance have increased steadily Local property tax levies applied to road and bridge construction and maintenance have increased steadily Increased dependence on borrowing as a finance strategy Increased dependence on borrowing as a finance strategy Deferred projects and maintenance Deferred projects and maintenance 20

21. State Response to Challenges - Bonding Addition of the Local Road Improvement Program Addition of the Local Road Improvement Program ◦Last year $10M Local Bridge Bonding Local Bridge Bonding ◦Last year $30M 21

22. State Response – Chapter 152 Gas Tax Increase – 8.5 cents Gas Tax Increase – 8.5 cents Tab Fee Increase – removed cap Tab Fee Increase – removed cap MVST 60%/40% split roads/transit MVST 60%/40% split roads/transit Constitutionally Dedicated 22

23. Solution – Leverage Constitutionally Dedicated Streams Increase State Aid and other targeted state funding – gas tax, tab fees, motor vehicle sales tax 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 Sales tax on gas- not constitutionally dedicated but automatically indexes 23

24. Bonding – General Obligation and Truck Highway 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 24

25. 2013 AMC Legislative Initiatives 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 abryduck@mncounties.org 25