1b. Resolution in Support of State Aid Road Funds I
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690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
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Acton ty ,r' v Acfrn/n s lroif
IMEMORANDUM / 7)w A
TO: Don Ashworth, City Manager
IIFROM Gary Warren, City Engineer i:....... .. .. ..._._
IIDATE: March 8, 1989 __a--4-g 1 - -
SLTBJ: Resolution in Support of State Aid Road Funds • /3 - _
II File No. PW004
Attached are news releases from the City Engineer's Association of Minnesota and
I Minnesota Good Roads, Inc. concerning the potential loss of State Aid funds if
the "Sunset Clause" is allowed to take effect in 1992 for the transfer of monies
from the Motor Vehicle Excise Tax (MVET) to the Highway User Tax Distribution
1 Fund. As shown on the attachments, the City of Chanhassen would have lost
almost $20,000 in State Aid funds this year if the Sunset Clause had taken
effect in 1989.
II Minnesota Good Roads has also notified us of the potential for legislation to be
introduced for using MVET revenues for purposes other than transportation.
I Many battles have been fought and continue to be fought by the Southwest
Transportation Coalition and the respective cities, for transportation funding
for Trunk Highway 5 and Trunk Highway 212 improvements. In keeping pace with
II the expanding transportation system needs that the City of Chanhassen has
including rehabilitation of the existing system as summarized in our five-year
State Aid construction program, I thought it appropriate for the City Council to
consider communicating its support for the continuation of the transfer of the
I VET monies to the Highway User Tax Distribution Fund beyond 1991. The ultimate
goal is the transfer of 100% of the MVET monies to fund transportation needs.
II It is therefore recommended that the City Council approve the attached resolu-
tion in support of this action and direct that the resolution be passed on to
our state legislatures to encourage their cooperation in securing this vital
II funding source for our present and future transportation needs.
Attachments
1 1. City Engineer's Association of Minnesota letter dated
February 13, 1989.
II 2. Minnesota Good Roads letters dated February 6, 1989 (2) .
3. Five-Year State Aid construction plan.
4. Sample resolution.
II
11
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CITY ENGINEERS ASSOCIATION
of MINNESOTA
February 13, 1989
ENGIry; '
� a
1ssacw%sue
T0: City Engineer or City Clerk
Chanhassen
RE: Reduction in Your Share of State Aid Road Funds
Legislation (House File 1749) which was passed in 1988 provided for continuation
of the sharing by the state, counties, and cities of monies transferred from the
Motor Vehicle Excise Tax (MVET) to the Highway User Tax Distribution Fund. That
legislation has a Sunset Clause that will eliminate the counties and cities from
sharing those MVET funds in 1992. I
This is a concern to all cities. The figures below will give you an idea of the
losses in State Aid funds for roads that your city will experience after 1991
under the present law. The figures compare funds that are allocated to you in
1989 with the money you would have received in 1989 if the Sunset Clause cutoff
had taken effect in 1989. The actual figures for 1992 are unknown at this time.
Actual 1989 Allocation 1989 Allocation Net Loss in 1989 State Aid
if MVET had been Funds if MVET Funds had been
Eliminated in 1989 Eliminated for 1989 1
$342,964 $323,359 $19,605
The City Engineers Association of Minnesota unanimously passed the attached
Resolution concerning MVET funding. It is forwarded for your information and as
a sample that may be used for your city's consideration of passing a similar
resolution.
Your assistance in your city's passing and forwarding a similar resolution to
your legislators, and/or other contacts with your legislators, is encouraged.
Passage of legislation to eliminate the Sunset Clause and continue cities
sharing the MVET income for road purposes is important to all cities. Your
efforts will be greatly appreciated.
If you have any questions, please contact one of the following persons:
Bruce Bullert (507) 645-8831 Jim Grube (612) 924-2551
Larry Anderson (612) 447-4230 Ken Saffert (507) 625-3161
Ron Rudrud (612) 881-5811
Yours truly,
T Y Of JMSSEI
Ronald L. Rudrud, P.E.
President, CEAM F FB 22 1989
ELNEERIMG DEPT.
111
CITY ENGINEERS ASSOCIATION OF MINNESOTA
11 RESOLUTION RE: FUNDING FOR STREET CONSTRUCTION IN MINNESOTA
Res. No. 1989-1
WHEREAS, the City Engineers Association is composed of over 100 members
' throughout Minnesota representing nearly every city over 5000 population in
the state; and
' WHEREAS, its members are particularly aware of the transportation needs
' of the cities and counties in the State of Minnesota; and
WHEREAS, the street and highway system is deteriorating at a ,rate faster
' than the financial ability to maintain and rebuild it; and
WHEREAS, transportation funding is a high priority issue of 1989; and
WHEREAS, it is appropriate to use road user funds for major street and
road construction rather than using property tax; and
WHEREAS , county and city government highway and street plans are
predicated on proceeds from the Motor Vehicle Excise Tax (MVET) , many county
and city plans will be cut back or not completed.
WHEREAS, the percent of local participation in the construction and
reconstruction of state owned highways is increasing.
NOW THEREFORE, BE IT RESOLVED that City Engineers Association of Minnesota,
meeting January 19, 1989, recommends that the 1989 session of the Legislature
provide for the transfer of 100% of the MVET to the road user fund to provide a
stable source of adequate funding for the construction and maintenance of
streets and highways in the state.
' BE IT FURTHER RESOLVED that the "sunset" provision included in the 1988
' Transportation Funding Bill be removed so that MVET revenue can continue to go
to the Highway User Tax Distribution Fund so that it can be used for city
streets and county roads in the State of Minnesota.
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BE IT FURTHER RESOLVED that this resolution be forwarded to the Governor,
the Commissioner of transportation, and to the members of the State
Legislature. I
Unanimously passed and adopted at their annual meeting this 19th day of
January, 1989. '
� tse,„ J( 1
Secretary President
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I __ ., MINNESOTA GOOD ROADS, INC.
\_ 3402 UNIVERSITY AVE. S.E., MINNEAPOLIS, MINN. 55414
(612) 379-7227
'=�`y THE CITIZENS'VOICE FOR GOOD ROADS
(; :--// 4. 11::::::::
I OFFICERS
ROBERT J.McFARLIN J CORRIGAN
Executive Director
President February 6, 1989 St.Louis Park
RAY FOSLID JERRY ANDERSON
Vice President Asst.Executive Director
Shakopee
I RAY LeAPPEGAARD ROBERT M.JOHNSON
Vice President
St.Paul
Consultant
GARYSAUER Dear City Engineer or Administrator:
Vice President
Maple Grove
PSecretaryD Enclosed is a letter to your City Council members
PAUnLBAILEY regarding the Governor's budget recommendations for Transpor-
Treasurer tation.
Minneapolis
BOARD OF DIRECTORS
ROY ASPHAUG
St Louis Park While no legislative bills have been introduced to
JOHN M.BAILEY,JR. g
PETEReM.BECKMAN date, we feel the concept of using MVET revenues for purposes
RIStHARD P BRAUN other than transportation would set a dangerous percedent for
' DONALD K DEANS the future and make competition for funding in the General Fund
St.Paul
FRED DERESCHUK even more difficult. Please pass this letter along to your
JOHN K.DOLAN Council for its consideration at your earliest convenience.
Dodge Center
IBOB le Grove i�
WILLIAM ELSHOLTZ.JR. We look forward to your participation in our Legislative
LITTON E. FIELD Breakfast in the Mn/DOT Cafeteria on February 15th at 8:30 AM.
St Paul
DAN FRENTRESS I hope you will have the opportunity to
Brooklyn Park p y pP y personally call the
DAVE GRAVDAHL legislators in your area and invite them to this event on behalf
Breezy Point
DOROTHY GROTTE of our membership.
Fairmont
DAN GUSTAFSON
St.Paul
IH.B (Bud)HAYDEN,JR. Thank you for your help on these issues. I look forward
BOB H LLIKER
St Paul to working with you in the coming months.
BOB JENSEN
Farmington
GREG JOHNSON Yours sincerely,
St.Paul
BOB KING
Brooklyn Park tL,(�
WILLIAM KONIARSKI \}
Belle Plaine
WES LANE
Minneapolis
RU oo ington H Fred J. Corrigan
Bloomington
JAMES P LOANEY Executive Director
North Mankato
GEORGEW MATTSON
Shafer
CHM ARLaple G ESMrove CCROSSAN enclosed: letter to City Council members
MICHAEL S.McGRAY
Osseo
JOE MICHELS
Litchfield
IJOHN MILNE
St.Paul
ARLYN NELSON
Buffalo
KENNETH PAULSON
St.Paul
JERRY PETERMEIER
IGrand Rapids
PALMER PETERSON
Minneapolis
E.J.RENIER
WILLIAM rArRICE ern h,+ N' ��°, ,x G
s ter :
Milaca 2.y 1., is s`9 aAt1
DON BICKERS �,. l� Dili I;t 1r
Worthington l'I'l '`U�( ' t�( ' '�,
A.J.(Marty)ROMANO t`1.1: I
Minneapolis
GARY RUDNINGEN () n
Red Lake Falls FEB 0 U I9 B
ROBERT J.SCHMITZ
Jordan
MIKE SILL
Savage 1py!Q'
CHARLES J.SWANSON a8 p�ll1° .
Stillwater >�
E.
JANE TSCHIDA
St.Louis Park
CARL WYCZAWSKI
New Ulm
IL
MINNESOTA GOOD ROADS, INC. J
■ \` 3402 UNIVERSITY AVE. S.E., MINNEAPOLIS, MINN. 55414
(612) 379-7227
THE CITIZENS'VOICE FOR GOOD ROADS
OFFICERS FRED J.CORRIGAN '
ROBERT J.McFARLIN Executive Director
President February 6, 1989
St.Louis Park JERRY ANDERSON
RAY FOSLID Asst.Executive Director
Vice President
Shakopee ROBERT M.JOHNSON'
RAY LAPPEGAARD Consultant
Vice President
St.Paul
GARYSAUER Dear City Council Member:
Vice President City
Maple Grove
PAUL e
Secretary
'
Anoka RE: Governor's Budget Proposal -
PAUL BAILEY MVET transfer for local property tax relief
Treasurer
Minneapolis
BOARD OF DIRECTORS
ROY ASPHAUG
St.Louis Park
JOHN M.BAILEY,JR. The Governor's recent budget proposal included additional
Minnetonka
PETER aul BECKMAN transfer of MVET revenues from the General Fund to transportation
RICHARD P BRAUN
Columbia Heights programs - an additional 5% in 1989 and 10% in 1990. This repre-
DONALD K.DEAN
St.Paul sents the first time in Minnesota history that a Governor has recom-
FR�DDapolisCHUK mended General Funds be used for transportation and continues the
JOHN K.
Dodge Center commitment to eventually transferring 100% to transportation.
BOB ,
Maplle e Grove
WILLIAM
Roseville HOLTZ,JR. Enclosed is a copy of the section of the budget relation to
Roseville
LITTON St Paul S.FIELD transportation funding. I would like to draw your attention to
DAN Brooklyn Park I
Brooklyn Park the proposal to use MVET revenues for the purpose of local govern-
DAVE GRAVDAHL
Breezy Point ment aids, with no restrictions on how these funds would be expended.
DOROTHY ROTTE
While the budget shows $22 million for this use, we understand the
DAN GUSTAFSON
St.Paul true number will be closer to $14 million.
H B.(Bud)HAYDEN,JR. ,
Plymouth
BOB HILLIKER I urge you to consider these recommendations closely, aL-; the
BOB JENSEN
Farmington use of MVET funds for any purpose other than transportation would
GREG JOHNSON
St.Paul threaten the intent of 1981 legislation identifying MVET revenues
BOB rooklIN y Park for transportation and laid out a schedule to achieve 100;' transfer
WILLIAM KONIARSKI
Belle Plaine to transportation by 1990. The revenues are critical to local, county
WES LANE
Minneapolis and state transportation systems and any diversion of these revenues
RUSS LANGSETH
Bloomington for other purposes would seriously jeopardize the maintenance and
JAMES P LOANEY
North Mankato improvements identified as necessary to keep our communities and state
GEORGE W.MATTSON
Shafer economically competitive.
CHARLES McCROSSAN
Maple Grove
MICHAEL S.McGRAY
Jo sMICHELS Minnesota Good Roads has consistently taken a strong position
JOHN
hMILNE supporting a 100% transfer of MVET revenues for transportation funding.
ARLYN We urge you to carefully consider this recommendation and reject the '
K
Buffalo PAULSON concept of diverting the transfer of MVET funds for any purpose other
St.Paul than transportation.
JERRY PETERMEIER P
Grand Rapids
PALMER PETERSON
M.inneaRENpoR lis We look forward to working with you during the 1989 legislative
Eden Prairie session.
WILLIAM A.RICE
Milaca
DON BICKERS
Worthington
A.J.(Marty)ROMANO Yours sincerely,
Minneapolis
GARY RUDNINGEN
Red L
Red Lake Falls
ROBERT J.SCHMITZ v.�J
Jordan
MIKE SILL
Savae
CHARLES J.SWANSON Fred J. Corrigan, Executive Director
Stillwater
JANE TSCHIDA
St.Louis Park
CARL WYCZAWSKI enclosure
New Ulm
ISpecific goals of the Governor include: for the Twin Cities metropolitan area.
•an orderly investment program to re air Responsibility for that activity is now dis-
p persed among a number of state,regional
and modernize our aging highway sys- and local agencies. Highway, transit and j
tems, transit systems, and buildings, light rail planning requires a more
I focused and coordinated effort. The
• the development of creative alternatives, Governor questions the continued need {
such as light rail, to meet our future for the Regional Transit Board, and he _
Itransportation needs, suggests the Legislature should consider
•predictable and secure funding sources re trutcturrehmeetroarea transportation ►.
to meet our longer-term infrastructure planning.
needs, and
I Amateur Athletics. The Governor
•construction and acquisition of sufficient recommends that the 1989 Legislature
physical assets to enhance our education- continue the effort to develop the state's
I al programs and stimulate economic athletic infrastructure. The following
development. projects, all needed to keep the 1990
Olympic Festival and the 1991 Special
' Recommendations Olympics events on track, are recom-
mended for authorization by the 1989
Transportation. The Governor recom- Legislature:
I mends that the Legislature increase the
transfer of the Motor Vehicle Excise Tax • $8.5 million to expand the Blaine
(MVET)from its current 30%level to 35% sports complex,
Iin 1990 and 45% in 1991. The $49 million
generated by the transfer would he dis- • $3(0,000 to upgrade track and field
tributed as follows: facilities at the University of Min-
' • $23 million to the trunk highway nesota to Olympic standards,
g y fund
I • $4 million to increase light rail fundin •• $5.0 million to expand the the Giants
and g� Ridge complex, and
I • $22 million to local governments to •onbt)heS t to Louis River iniCarl ter
reduce local property taxes for transpor- County. ton
II tation or other local purposes.
Other Capital Investments. The I Because this MVET transfer will not meet nor recommends that the 1989 session •
all trunk highway funding needs,the Gover- authorize an additional $77 million for
nor also recommends that the Legislature the following immediate capital needs:
index the gasoline tax to help insure ade-
Iquate future funding as costs increase. • $25 million for repairs and construc-
The Governor recommends that the le pis- tion planning needed for the state's
I lature restructure transportation plannin g Regional Treatment Centers, includ- .,
g planning for the first phase of state
I
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t MUNICIPAL STATE-AID STREET SYSTEM I
5-Year Construction Program For Chanhassen
(State Aid Expenditures Only) I
REVENUE I
Present State Aid Construction Balance September 1, 1988 = $ 355 ,949 .00
I
Estimated Annual Construction Allotment $ 248, 449 . 00 X 4 = $ 993 , 796 . 00
Estimated Total State Aid Allotment for Programming Purposes $ 1, 349 ,745 .00
I
ESTIMATED EXPENDITURES II
Year Estimated II of State Aid
Exnenditure Termini Project Description Expenditure
On 104-010 & 020 Grading, gravel 1
From C.R. 14 base, storm sewer
1989 To T.H. 212 & bituminous sur- $ 262 , 066 . 00*
Length 1 . 25 miles facing. II(Bluff Creek)
On 106-010 Grading, gravel
I
From Railroad Bridge base & bituminous
1990 To Lyman Blvd. surfacing. $ 184 , 000 . 00
Length 1 . 02 miles
(Audubon Road) I
On 111-010 Grading, gravel
From T.H. 5 base, storm sewer II 1991 To T.H. 7 & bituminous base. $ 477 , 000. 00
Length 1 . 30 miles
(Minnewashta Pkwy) II
on 111-010 Concrete curb/gutter
From T.H. 5 & bituminous sur-
1992 To T.H. 7 facing. $ 250, 000 . 00 I
Length 1 . 30 miles
(Minnewashta Pkwy)
On 112-010 Grading, gravel F I
From T.H. 101 base & bituminous
1993 To Riley Lake Blvd., surfacing. $ 125 , 000 . 00
Length 0 . 61 miles
II
(Lyman Boulevard)
On 112-020 Grading, gravel
II
From Lyman Blvd. base & bituminous
1994 To City Limits surfacing. $ 116 , 000 . 00
Length 0 . 40 miles ,
(Lake Ri ] ey 11111.74 ) -
*Carry-over from 1988 project Total $1 , 414 , 066 . 00
111
' CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
' DATE: RESOLUTION NO:
MOTION BY: SECONDED BY:
' A RESOLUTION SUPPORTING FUNDING FOR STREET CONSTRUCTION IN MINNESOTA
' WHEREAS, the street and highway system is deteriorating at a rate faster
than the financial ability to maintain and rebuild it; and
' WHEREAS, transportation funding is a high priority issue; and
WHEREAS, it is appropriate to use road user funds for major street and road
construction rather than using property tax; and
WHEREAS, county and city government highway and street plans are predicated
' on the receipt of proceeds from the Motor Vehicle Excise Tax GAVET); and
WHEREAS, many state, county and city construction projects will need to be
cut back or eliminated if the current funding trend is not increased; and
' WHEREAS, the precent of local participation in the construction and
reconstruction of state owned highways is increasing; and
WHEREAS, construction and proper maintenance of a safe and efficient roadway
system is vital to the development and economic groth of the community.
' NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen
that the "sunset" provision included in the 1988 Transportation Funding Bill be
removed so that MVET revenue can continue to go to the Highway User Tax
' Distribution Fund so that it can be used for city streets and county roads in
the State of Minnesota.
' BE IT FURTHER RESOLVED that this resolution be forwarded to the Governor,
the Commissioner of Transportation, and to the members of the State Legislature.
Passed and adopted by the Chanhassen City Council this day of
, 1989.
' ATTEST:
Don Ashworth, City Manager Donald J. Chmiel, Mayor
YES NO ABSENT
Chmiel None
None
Boyt
' Johnson
Workman
Dimler
I