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MnDOT Provides City Transportation Funding Estimates
The estimates include $11.35 million in one-time funding the 2024 Legislature provided for the Small Cities Assistance Account.
The Minnesota Dept. of Transportation (MnDOT) has updated its Transportation Advancement Account (TAA) website to include city-by-city estimates for the Larger Cities Assistance Account and the Small Cities Assistance Program (pdf) .
The 2024 Small Cities Assistance Account estimates include $11.35 million in one-time funding that the 2024 Legislature provided in the transportation supplemental budget. This appropriation, which will be paid in July 2024, is intended to act as a funding bridge until the TAA revenues are collected.
The TAA will be funded with a combination of revenue from the sales tax on motor vehicle repair parts and a new retail delivery fee.
Cities receiving funds from the TAA can use the revenues for the following:
- Land acquisition, environmental analysis, design, engineering, construction, reconstruction, and maintenance.
- Road projects partially located within the city.
- Projects on municipal state-aid streets located within the city.
- Projects on county state-aid highways located within the city.
- Cost participation on road projects under the jurisdiction of another unit of government.
- Debt service for obligations issued by the city in accordance with 2023 Minnesota Statutes, Chapter 475, provided that the obligations are issued for an allowable use.
Funds in the TAA are expected to grow in the coming years and should become a reliable source of funding for city transportation infrastructure.