MN HSR Commission Funding Formula Mn High Speed Rail Commission September 1, 2016

MnHSR Commission: History Commission formed in 2009: Developing a funding formula County railroad authorities seen as most sustainable funding source Discussed elements of a funding formula, recognizing that not all members benefit equally Four funding formula elements: population, route miles, HSR and commuter stations and a base amount

MnHSR Commission Funding Formula Current Funding Formula, per Article 9 of the Joint Powers Agreement 50% population in the Financial Party jurisdiction 10% high speed rail route mileage 31% high speed rail and commuter rail station locations 9% base shared equally by all Financial Parties

HSR Formula – Rail Stations (31%) 2009 Joint Powers Agreement includes: Four high speed rail Stations (Union Depot - Saint Paul, Red Wing, Rochester and Winona) Four commuter rail stations (one in Ramsey County, two in Washington County, and one in Dakota County) None are double counted Union Depot at 8%, all others at 3.5%

HSR Formula – Stations (31%) 2009 Olmsted County did not join Subtract one high speed rail station 2012 Washington County withdrew Subtract two commuter rail stations 2013 Station percentage was shifted from stations to equally shared base, per the JPA

Mn HSR Commission Funding Formula Without Olmsted County RRA and following Washington County RRA withdrawal Current Funding Formula, per Article 9 of the Joint Powers Agreement

2016 Mn HSR Commission Total Dues Five Financial Parties, following Washington County withdrawal and prior to La Crosse Area Planning Committee joining

Joint Powers Agreement Amendment July 2016 La Crosse Area Planning Committee joins the MN HSR Commission as a Financial Party LAPC dues calculated per JPA and added to already adopted 2016 Budget Commission undertakes update of the JPA; requests two options without commuter rail stations in the funding formula

Funding Formula: Option 1 Maintains the stations percentage at 31% of total dues Four total high speed rail stations Includes La Crosse Area Planning Committee

Funding Formula: Option 2 Represents a further adjustment of the formula Allocates commuter rail station percentage to base Includes La Crosse Area Planning Committee

Summary Original funding formula adopted in 2009 was immediately adjusted, later adjusted again Option 1 follows the adopted formula, though with just four HSR stations Option 2 follows the formula adjustment process