Minnesota County Highway Accountants Conference April 26 2018 1 About us State Aid 101 available at http wwwdotstatemnusstateaidtraininghtml State Aid for Local Transportation SALT was established in 1957 ID: 756722
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State Aid 101 and Update
Minnesota County Highway Accountant’s ConferenceApril 26, 2018
1Slide2
About us
State Aid 101 available at http
://
www.dot.state.mn.us/stateaid/training.html
State Aid for Local Transportation (SALT) was established in 1957The purpose of the state aid program is to provide resources, from the Highway Users Tax Distribution Fund (HUTDF), to assist local governments with the construction and maintenance of community-interest highways and streets on the state aid system.The goals of the state aid program are to provide users of secondary highways and streets with:Safe highways and streetsAdequate mobility and structural capacity on highways and streetsAn integrated transportation network
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State Aid’s organization
State Aid (Central Office)Administration
Project Delivery: Federal, State Aid, State Aid Programs, Emergency Relief, Safe Routes to School, and Traffic Safety
County Needs
Municipal Needs Information ResourcesDistrict EngineersDistrict State Aid Engineers (DSAE)District State Aid Assistant (DSAA)3Slide4
Role of State Aid (Central Office)
Administer the distribution
of
funding
Distribute funds for highway maintenance and construction to counties, cities, and townshipsProvide technical assistanceAuthorize funds for bridge constructionCoordinate locally funded projectsProvide overall management of the state aid system4Slide5
Role of District State Aid Engineers
Each district has one District State Aid Engineer (DSAE) and at least
one District State Aid Assistant (DSAA)
Liaison
to local agenciesState Aid responsibilitiesNeeds reviewPlan approval/processing Construction review/approvalAssist in local issues as needed5Slide6
Construction and Traffic Safety
Online resources for construction (http://
www.dot.state.mn.us/stateaid/construction.html
)
Pay item formsContract administration formsInformation and resources Services and resources for traffic safetyHighway Safety Improvement Program6Slide7
Tools and applications
eAdvert (http://
www.dot.state.mn.us/stateaid/eadvert.html
)
Tool for locals to post construction projects for bidProject Mapping Tracking (http://www.dot.state.mn.us/stateaid/project-mapping.html) Interactive map of current State Aid projectsSA NEEDS 3 (https://dotapp7.dot.state.mn.us/saneeds3/) Application that is used to determine the annual apportionmentsState Aid Accounting System (SAAS) (http://
www.dot.state.mn.us/safinance/saas.html
)
Generate various financial reports
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State Aid’s role
State agencies and federal agencies:
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FHWA
FTA
Army Corp of Engineers
MnDOT
PCA
DNR
State Aid
Local agencies
Cities
Counties
TownshipsSlide9
What’s included in the state aid system?
County State Aid Highway (CSAH)87 counties8 metro counties and 79 counties in greater Minnesota
Municipal State Aid Street (MSAS)
148 cities of population greater than 5,000
84 metro cities and 64 cities in greater MinnesotaTown road and bridge Jurisdictional Transfers (Turnbacks)9Slide10
County – state aid system
The County State Aid Highway (CSAH) system is a network of key routes under the jurisdiction of Minnesota’s
counties (Minnesota Statues 162.02).
CSAH system
covers just over 30,700 miles (2/3) of county roads.The system was established in 1957 and has remained relatively constant.There are established criteria for eligible routes.10Slide11
County s
tate aid funding – from pump to project11Slide12
Highway User Tax Distribution Fund (HUTDF)
Constitutionally dedicated to MnDOT, counties and
state aid cities
12
Fuel Tax
License Tabs
Motor Vehicle Sales TaxSlide13
County Needs – funding overview
County state aid funds are collected by the state according to the constitution and law, distributed from the Highway Users Tax Distribution Funds (HUTDF
).
The county
share of the HUDTF is 29% of the regular 95%. The County State Aid Highway Needs Unit collects and maintains data to calculate the annual distribution to the counties to maintain, improve and construct their designated county state aid highways.13Slide14
County Needs – Money Needs and Screening Board
“Needs” is the estimated total annual cost of constructing, over a period of 25 years, the CSAH system to standards in a
county
(Minnesota Statutes 162.07, Subd. 2).Annually, we collect information from counties to calculate their 25-year needs.Every October the County Screening Board submits its findings and recommendations in writing which includes each county's lane-mileage and Money Needs.The County Screening Board is made up of county representatives from the eight MnDOT districts and six urban counties.14Slide15
County Needs - accounts
After each county's total allocation is determined their money is further divided into regular and municipal accounts. Regular
is based on all mileage outside the corporate limits of cities under 5,000 population which includes the miles inside corporate limits of cities over
5,000
population.Municipal is based on mileage inside the corporate limits of non-state aid cities (under 5000 pop.).The regular and municipal accounts are further divided into construction and maintenanceConstruction is 60% of the account and must have an approved plan or agreementMaintenance is 40% of the account and does not require a plan. Counties must report their expenses to the State Aid office annually 15Slide16
Local Bridge/Road Bond Language – aka Earmarks
There is a difference between Trunk Highway (TH) bonds and General Obligation (GO) bondsTH – utilized for trunk highway purposes
GO – utilized for local roadways/bridges
Earmarks – The words you use matter and dictate how you are able to utilize the funds. Do not assume intent.
Project readiness is keyRecommended to not ask for $ if project is not ready for construction in 3-4 yearsLegislature likes to see $ that they have appropriated get out the door as quickly as possibleHaving a pot of $ sitting there looking unused does not help with future requests for fundingProjects tend to go smoother when local agencies are the lead agency on a cooperative agreement project with MnDOT16Slide17
Local Bridge/Road Bond Language – aka Earmarks
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*For
bridge projects, the funding can only be used for eligible items included in the State Aid Manual
.
**Use of GO bonds for ROW is discouraged Slide18
Local Bridge Replacement Program (LBRP)
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Local Bridge Replacement Program (LBRP)
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Local Bridge Replacement Program History
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Total:
$335.5 million in bond funds
982 bridges replaced
Avg
- $342,000 per bridge
Year
Bond
$
# Projects
2006
$54.7m
228
2008
$51.5m
133
2009
$10m
6
2010
$66m
232
2012
$62.7m
256
2014
$33m
49
2015$7.442017$49.267Slide21
Local Road Improvement Program (LRIP)
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Local Road Improvement Program (LRIP)
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Local Road Improvement Program History
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Year
Bond
$# Projects2005$10m
46
2006
$16m
75
2008
$10m
81
2012
$20m
34
2014
$54.4m
43
2015
$8.9m
9
2016
$3.2m
1
2017
$112.7
47
Total:
$235.2 million in bond funds
289 roads improvedAvg - $815,000 per projectSlide24
LBRP and LRIP Status
Master Local Bridge Priority List (5 year priority: 2018-2022)
Bridges identified by local agencies as priority for replacement within their 5-year capital improvement program
958
bridges requesting $261 million in bond fundsLocal Bridge Waiting List (as of April 2018)Bridges that have been designed and approved or are in the process of design134 bridges requesting $64 million in bond funds24
Local Bridge Replacement Program
Local Road Improvement Program
Agency
# Projects Funded
Bond $ Awarded
Total Project
Cost
County
16
$87.35M
$339.02M
State Aid City
13
$18.89M
$54.78M
Small City
11
$5.22M
$19.52M
Township
7
$4.38M$5.86MTotal36$115.84M$419.18MSlide25
State Aid partners
State Aid partners
State Aid Bridge
State Aid Finance
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State Aid Bridge
Process state and/or federally funded local bridges and structuresLocal bridge information resource
Annual Local Bridge Cost Reporting
Liaison
with MnDOT Bridge Office26Slide27
State Aid Finance
State Aid Finance provides accounting and financial support to Minnesota’s cities and counties. A
ccountant
training through on-site
visitsProvide financial support and training for engineers through on-site visits Federal Aid and State Aid payments Commissioner’s Order for HUTDF apportionmentBridge bond and other grant requisitions, encumbrances and paymentsAnswer finance questions State Aid Finance works with the State Aid Office, District State Aid Engineers, Federal Highway Administration, Legislative Audit, and city and county engineers and accountants.
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State Aid Finance (continued)
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State Transportation
Funds
Town Bridge and Special Town Bridge
State Park Road Account
Federal Fund Exchanges
Turnbacks
FHWA Form
Disaster and emergency relief
Provide technical assistance:
Advances
Local Agency Bonds
State Aid Payment Requests
Delegated Contract Process (DCP) Payment Requests
Agency Agreements and Payment Requests
CSAH Regular and Municipal Construction Funds
View a full chart of the roles and responsibilities by employee at
http://
www.dot.state.mn.us/safinance/contact/saf-roles-responsibilities-external.pdf
Slide29
State Aid Finance – Changes
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State Aid Finance – Changes in Roles and Responsibilities
Acting State Aid Finance Supervisor
Training & Scheduling
Task Force Member
Fed Aid Agreements
Commissioner’s Order
Disaster and ER
Task Force Member
Training
Task Force Member
State Aid
Maintenance Schedule Changes
Annual Report Submittals
Bond Schedules
Candy Harding
Mike Kilanowski
Cindy Degener
John Fox Slide30
State Aid Finance Changes
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State Aid Finance Roles and Responsibilities Slide31
Questions?
Mitch Rasmussen Cindy Degener
State Aid Engineer Acting State Aid Finance Supervisor
651-366-4831 651-366-4877
mitch.rasmussen@state.mn.us cindy.degner@state.mn.usKristine ElwoodDeputy State Aid Engineer651-366-3804kristine.elwood@state.mn.us
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