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League of Minnesota Cities <br /> �M 145 University Avenue West,St. Paul,MN 55103-2044 <br /> (651)281-1200 • (800)925-1122 <br /> L°°e°°°f M"`maofa C9w Fax:(651)281-1299 • TDD:(651)281-1290 <br /> Cities�,vnwt;ng wca U's <br /> www.Imnc.org <br /> Street Utility Authority— Talking Points <br /> The Issue <br /> Cities need more tools to fund regular, scheduled street maintenance. Currently, streets are <br /> funded through assessments and property taxes, and some streets also receive a small amount of <br /> state funding(only 15 percent of the nearly 18,000 miles of city streets). Many cities are <br /> deferring street maintenance in part because our current system forces cities to rely on general <br /> revenues including volatile state aids to fund much needed street maintenance. Most streets are <br /> nearing the end of their planned life and traffic volumes are increasing—crisis is just around the <br /> corner. <br /> Key Points <br /> • Cities support street utility authority. <br /> • Cities need street utility authority because it would provide an optional tool for <br /> protecting infrastructure vital to Minnesota's economic development, as well as funding <br /> flexibility and predictability for property owners and cities. <br /> Details <br /> Allowing cities the option to establish a street utility would: <br /> • Provide funding flexibility and predictability for cities and property owners. <br /> o Be used only to maintain/replace streets we already have—could use for paving, seal <br /> coating, drainage, overlays, other. <br /> 0 84 percent of cities do not receive state support for city streets. Of the 134 cities that <br /> receive state support for streets, a large share of the funding is used to meet cities' <br /> obligations to fund county and state highways. <br /> • Protect investment—streets are critical to Minnesota's economic development& <br /> neighborhood vitality. <br /> o Nearly 65 percent of streets are more than 40 years old—average life is 50 years. <br /> • Be optional—city officials could evaluate whether this tool works for their communities. <br /> • Base fees on usage of system—how much the property contributes to wear and tear on city <br /> streets. <br /> AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER <br />