MnDOT Releases 2018 Small Cities Assistance Amounts

The Legislature appropriated $8 million for the account, which funds transportation projects for cities with populations under 5,000.
(Published Jul 2, 2018)

The omnibus transportation bill passed in 2017 (1st Special Session, Chapter 3) provides $8 million per year for the Small Cities Assistance Account for the biennium beginning July 1, 2017. The Minnesota Department of Transportation (MnDOT) released city aid amounts for 2018 last week.

The Small Cities Assistance Account, a program created in 2015, is aimed at providing street funding for cities that do not receive municipal state aid (MSA) because they do not meet the 5,000 population eligibility threshold for dedicated funds (gas tax, tab fee, and motor vehicle sales tax revenues) established in the state’s constitution.

The program received one-time funding of $12.5 million in 2015. The 2017 transportation bill provides two years of funding from the general fund for the account, but it does not provide a dedicated revenue source for future years.

Funds are distributed through a formula to the 704 Minnesota cities with populations below 5,000. Payments will be made concurrently with local government aid payments from the Minnesota Department of Revenue.

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