Sponsor: Public Works
Title
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Transfer of Excess Municipal County State Aid Highway Funds
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Recommendation
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Authorize the County Engineer to request from the Minnesota Department of Transportation State Aid for Local Transportation, a transfer of $1,215,086 from the County's Municipal State Aid fund balance to its Regular County State Aid fund balance.
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Background and Rationale
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The County State Aid Highway (CSAH) funding that the county receives yearly comes from the Highway User Tax Distribution Fund through revenues generated by the state gas tax, license fees, and motor vehicle sales tax.
Minnesota Statutes 162.08, subdivision 4(d) provides that accumulated Municipal CSAH fund balances in excess of two years' municipal account apportionments may be transferred to a county's regular CSAH balance for use outside of municipalities that are under 5,000 in population when the county’s board of commissioners approves that transfer. The two-year municipal account apportionments are just over $700,000. Ramsey County has a balance of $2,015,086, which is $340,531 more than the maximum allowed balance of $1,674,555, which is determined by the state aid office.
To prevent a reduction of $340,531 in CSAH funds that are allocated to the county in 2025, a minimum of $340,531, but no more than $1,215,086, must be transferred from the Municipal CSAH balance to the Regular CSAH fund balance. These funds are used to finance the Ramsey County Transportation Improvement Program.
The transfer of funds from the Municipal CSAH account to the Regular CSAH account does not adversely affect any of the cities in Ramsey County with a population under 5,000 because funds from the Regular CSAH account can be used on the county roads within those communities.
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County Goals (Check those advanced by Action)
☐ Well-being ☐ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
There is no racial equity impact with the transfer of these funds.
Community Participation Level and Impact
There is no community engagement associated with this request for board action.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The transfer $1,215,086 from the County's Municipal State Aid fund balance to its Regular
County State Aid fund balance is necessary to prevent a penalty or reduction in county allotted CSAH funds for 2025.
Last Previous Action
On December 15, 2020, the Ramsey County Board of Commissioners authorized the County Engineer to request from the Minnesota Department of Transportation State Aid for Local Transportation, a transfer of $341,463 from the county’s Municipal County State Aid Highway (CSAH) fund balance to its Regular CSAH fund balance (Resolution B2020-255).
Attachments
None.