DEPARTMENT: Transportation
FILE TYPE: Consent Action
TITLE
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Request To Commissioner Of Transportation To Transfer Excess Municipal State Aid Construction Funds To Regular State Aid Construction Account
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PURPOSE/ACTION REQUESTED
Request that the Commissioner of Transportation transfer excess Municipal State Aid Construction Funds (Municipal Account) to the Regular State Aid Construction Account (Regular Account).
SUMMARY
Dakota County receives County State Aid Highway (CSAH) funds for highway construction projects. These funds are allocated to Dakota County's Regular Account and Municipal Account. The Municipal Account can only be used for projects located in cities with a population of less than 5,000. Since funds in the Regular Account can be used on any CSAH route, transferring excess funds from the Municipal Account to the Regular Account would not jeopardize future projects in cities under 5,000. This action is routinely done to provide greater flexibility in the use of Dakota County's CSAH funds and to prevent a reduction in State Aid funding received by the County.
The County State Aid Screening Board (Screening Board) is a board of designated county engineers appointed by the Commissioner of Transportation. The Screening Board recommends to the Commissioner of Transportation how State Aid funds are apportioned to each county. Local governments receive State Aid funds based on how much money they "need" to bring their highways up to standard. The Screening Board rules include a deduction in needs if the Municipal Account balance exceeds five years of apportionment. To avoid a reduction in "needs" and a corresponding funding reduction, State Aid rules allow a transfer of Municipal Account fund balance in excess of two years apportionment to the Regular account. The County's current Municipal Account fund balance is $2,315,012. The Municipal Account apportionment was $422,613 in 2023 and $467,399 in 2024. To prevent a reduction of the 2025 State ...
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