County Transportation System

Governor’s Transportation Advisory Committee

September 14, 2012Abbey Bryduck, AMC Policy Analyst

Minnesota Roadways Comparison of System Miles and Traffic Volume-2006

Total Local Share120,629 miles89.1%40.7% VMT

Total County Share45,000 miles33.5% 24.7% VMT

Source:Mn/DOT TrafficData and Analysis

System Miles Percent VMTUS Interstates, & Us and MN Trunk Highways

11,870 8.8% 59.2%

County State Aid Highways 30,514 22.6% 22.8%

County Roads 14,483 10.8% 1.9%

Municipal State Aid Roads – Large Cities

3,069 2.3% 7.8%

City Streets – Large and Small Cities

16,036 11.9% 6.3%

Townships 56,257 41.5% 2.0%

Other 2,917 2.1% <.01%

Total 135,416 100% 100%

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

County State Aid System (CSAH)

Main Revenue Sources • License Tab Fees• Vehicles Sales Tax (MVST)• Gas Tax

• Distribution of FundsCSAH Distribution of FundsApportionment Formula– “old

money”• 10% equal to all counties• 10% proportional based on vehicle

registration• 30% based on county lane miles• 50% county construction needs

CSAH Distribution of FundsExcess Formula– “new” money

from 2008 bill• 40% vehicle registrations• 60% needs

County Roads

Revenue Source• Property Taxes• Assessments

Historical Context• Local roads and bridges were initially funded with property

taxes and assessments, which were perceived as inequitable.• Local Road Systems formed in 1956 with a constitutional

amendment, establishing the 62% (Trunk Highway)29% (CSAH)9% (Municipal)

distribution of highway user revenue.• This would begin the gradual transition to taxes levied

against ownership and use of motor vehicles instead of property taxes.

System Stresses

• Traffic Growth• Greater level of heavy

commercial traffic• Heavier trucks

Key Challenges to the County System• Inflation of costs of materials• Increased maintenance and needs

due to aging infrastructure• Aging population presenting

additional safety and mobility concerns

Annual CSAH Unmet Construction Needs

Annual Annual Unmet %Construction Construction CSAH Unmet

Needs Allocation Needs Needs

1998 $259,325,597 $175,484,710 $83,840,887 32.3%1999 $279,568,555 $185,649,698 $93,918,857 33.6%2000 $282,186,458 $196,009,829 $86,176,629 30.5%2001 $294,906,411 $204,136,037 $90,770,374 30.8%2002 $305,978,605 $212,775,730 $93,202,875 30.5%2003 $321,389,994 $200,534,226 $120,855,768 37.6%2004 $347,626,686 $214,235,060 $133,391,626 38.4%2005 $364,718,533 $214,242,904 $150,475,629 41.3%2006 $387,233,574 $212,846,929 $174,386,645 45.0%2007 $427,542,352 $215,700,279 $211,842,073 49.5%2008 $479,824,306 $217,455,379 $262,368,927 54.7%2009 $486,733,110 $229,236,941 $257,496,169 52.9%2010 $519,263,941 $243,585,211 $275,678,730 53.1%2011 $536,902,096 $264,018,492 $272,883,604 50.8%2012 $551,001,578 $281,152,293 $269,849,285 49.0%

Annual CSAH Unmet Construction NeedsSource: Mn/DOT County State Aid

Annual Annual Unmet %Construction Construction CSAH Unmet

Needs Allocation Needs Needs

1998 $259,325,597 $175,484,710 $83,840,887 32.3%1999 $279,568,555 $185,649,698 $93,918,857 33.6%2000 $282,186,458 $196,009,829 $86,176,629 30.5%2001 $294,906,411 $204,136,037 $90,770,374 30.8%2002 $305,978,605 $212,775,730 $93,202,875 30.5%2003 $321,389,994 $200,534,226 $120,855,768 37.6%2004 $347,626,686 $214,235,060 $133,391,626 38.4%2005 $364,718,533 $214,242,904 $150,475,629 41.3%2006 $387,233,574 $212,846,929 $174,386,645 45.0%2007 $427,542,352 $215,700,279 $211,842,073 49.5%2008 $479,824,306 $217,455,379 $262,368,927 54.7%2009 $486,733,110 $229,236,941 $257,496,169 52.9%2010 $519,263,941 $243,585,211 $275,678,730 53.1%2011 $536,902,096 $264,018,492 $272,883,604 50.8%

2012 $551,001,578 $281,152,293 $269,849,285 49.0%

Local Response to Challenges• Local 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

State Response to Challenges - Bonding

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

• Local Bridge Bonding– Last year $30M

State Response – Chapter 152• Gas Tax Increase – 8.5 cents• Tab Fee Increase – removed cap• MVST 60%/40% split

roads/transitConstitutionally Dedicated

Solution – Leverage Constitutionally Dedicated Streams

• Increase State Aid and other targeted state funding

• Authorize additional local revenue generating authority– Wheelage fee– Local option sales taxes without referendum

requirement

Counties and TransitTwo authorities:• Regional Rail Authority• County Transportation

Improvement Board (CTIB)

County Transit Improvement Board (CTIB)

• In 2008, the 5 metro counties of Anoka, Dakota, Hennepin, Ramsey and Washington imposed a 1/4 cent sales tax for the purpose of expanding the transitway system.  (Light rail, commuter rail and BRT.) 

• The tax generates about $100M/year.  Since 2008, CTIB has distributed $467M in grants. 

• With grants to be awarded this fall, CTIB will have committed about half a billion dollars to transitways.

Regional Rail Authorities (RRA)• Authority to levy property taxes and contribute 10% of the

total capital cost of transitways.  (Note: prior to CTIB and the sales tax, this percentage was even higher.) 

• RRA's also pay the costs of feasibility studies, alternatives analyses, and early environmental work.  These upfront expenditures are significant.  For example, Hennepin has expended in excess of $25M for the SWLRT project for the pre-preliminary engineering work.

 

NOTE:If the region (CTIB and the Met Council) decides to accelerate the development of the "economically competitive" transit way system, the 10% RRA capital contribution will be a very significant property tax burden.  This will be a financial concern going forward.

Abbey BryduckAMC Transportation Policy AnalystAbryduck@mncounties.org651 789 4339