1. Municipal State Aid Streets
This PowerPoint will review important tasks that cities are responsible for concerning their Needs.
NEEDS training for cities

2. Municipal Needs - overview
Municipalities share of the HUTDF is 9% (of 95%).
The Commissioner annually sends a statement for the amount to be apportioned to each city’s MSAS fund.
To qualify for a share, a city has to have at least 5,000 in population.
50% of the total apportionment is distributed on prorated share of each city’s population
50% of the total apportionment is based on a prorated share of each city’s Construction Needs (or Money Needs)
HUTDF is Highway User Tax Distribution Fund

3. Municipal Needs – creating a MSAS System
Eligible cities can designate up to 20% of their roadway system for the Municipal State Aid Street (MSAS) system.
Minnesota Statutes
The total miles of city streets and county roads (non-CSAH) within the city’s jurisdiction (and on corporate limits) will be included in the basic street mileage.
Trunk Highway/County Road /CSAH Turnback miles are also allowed on the MSAS system - above a city’s statutory 20%.
Once a MSAS System is in place, a city can determine their Money Needs
Minnesota Statutes

4. Municipal Needs – Money Needs
What are the Money Needs for a State Aid city?
For each city, this is defined as the estimated cost of constructing and maintaining the MSAS System for a period of 25 years (Minnesota Statutes , Subd. 2).
Every year, State Aid cities update and forward their Money Needs information to the Commissioner via the MSAS Unit. State Aid then prepares the MSAS fund in accordance with the apportionment formula that has been set forth by the Municipal Screening Board.
The “Money Needs” for each City are presented annually to the Municipal Screening Board.
Minnesota Statutes , Subd

5. Municipal Needs – Screening Board
The Municipal Screening Board is composed of one engineer from each of the eight state highway construction districts, plus one engineer from each city of the first class. (Note: the metro district has two representatives on the Screening Board).
Each year, the Board reviews the Needs information for each city. By November 1st of each year, the Board submits a letter with their recommendations for each city’s Money Needs to the Commissioner. The final determination of each city’s money Needs is made by the Commissioner.

6. Annual Tasks - for MSAS Cities
Annual Certification of Mileage
System Revision Requests (revising your Municipal State Aid System)
Needs updating (Needs 3 application)
Maintenance Requests
The “things you need to do” every year 

7. MSAS calendar View larger image of MSAS calendar City Tasks that are
completed annually
City tasks are on the inside of the calendar.
MSAS Calendar -
MSAS calendar

8. Annual Certificate of Mileage – due January 15th
State Aid notifies cities every November that it is time to Certify their mileage.
Annual Certificate of Mileage – due January 15th

9. Annual Certification of Mileage (continued)
Purpose The Annual Certification of Mileage provides the basis for determining the maximum mileage of roadways eligible for designation as Municipal State Aid Streets. Annually, the certification is required to be submitted to State-Aid by January 15th with status as of December 31st of previous year.

10. Annual Certification of Mileage (continued)
Why? MS MUNICIPAL STATE AID STREET SYSTEM Subdivision 1. Creation, mileage, limitation; rules. (a) There is created a municipal state-aid street system within statutory and home rule charter cities having a population of 5,000 or more. The extent of the municipal state-aid street system for a city shall not exceed: percent of the total miles of city streets and county roads partially or totally within the jurisdiction of that city.
View full details of Minnesota Statutes
Minnesota Statutes

11. Annual Certification of Mileage – system map
Statute says 20% of a city’s roadway system can be designated as Municipal State Aid Streets.
Certifying your mileage allows us to know exactly how much state aid mileage a city can have on the system.
NOTE: that Trunk Highway Turnbacks , CSAH Turnbacks, and County Road Turnbacks are “excess” State Aid mileage for a city. These turnbacks are not included in a cities’ statutory 20% mileage limitation.
Map is from the Office of Transportation System Mgmt. Their State Aid map products for all cities are available at:

12. Annual Certification Form – getting started
STARTING POINT: Please note that columns I thru IV on this year’s form should be the same as columns IX thru XII on last year’s form.
Columns V thru VIII contain revisions. The results on IX thru XII will be the starting point the following year.
Full Certificate of Mileage Form can be found on the MSAS webpage.

13. Annual Certification Form - details
1 & 3: for reference only. These mileages do not affect the 20% limitation
2, 4, 6 ,7: all NEEDS mileages: these are the mileages you are drawing NEEDS on
8 & 9: These figures are the main basis of a city’s basic mileage. State Aid relies on the city to keep these figures accurate an up-to-date.
Note: Lines 1-4 are NOT part of the basic mileage total for a city. Lines 6-9 ARE part of the basic mileage total.
MSAS webpage -
Also note that all grey shaded fields are auto-filled with formulas.
Line 17 shows your available “banked” mileage
Line by line instructions can be found on the MSAS webpage.

14. Annual Certification of Mileage - backside of Form
On the reverse side of the form, locations are provided for noting revisions made during the year. Please list the individual revisions that are summarized on the front of the form (in Columns V through VIII)
Indicate if the revisions were included in the Needs of the reporting year.

15. System Revision Requests: due March 1st
NOTE: Deadline is for having revisions be a part of the following year’s Needs Calculations. You can actually request a system revision anytime of year.
System Revision Requests: due March 1st

16. System Revision Requests
Purpose Having roads on the MSAS allows cities to spend state aid funds on those roads. (and also allows cities to draw Needs on those roads) To place a local road onto your system, a system revision request should be made to your DSAE. The request may involve removing an existing MSA Route in order to free-up more available mileage. (Be mindful of paybacks on projects when revoking state aid routes).

17. System Revision Requests – key program concepts
Streets of community interest are those streets that function as an integrated network and provide more than only local access. A street may be selected for the state aid system if it:
Is projected to carry a relatively heavier traffic volume or is functionally classified as collector or arterial.
Connects points of interest; provides access to churches, schools, community halls, industrial areas, state institutions, and recreational areas; serves as a mail route, school bus route; or connects points of major traffic interest, such as parks, parkways, or recreational areas.
Provides an integrated and coordinated highway and street system affording, within practical limits, a state aid highway network consistent with projected traffic demands.
The function of a road may change over time requiring periodic revisions to the state aid street network
Things to consider when revising your MSAS system.

18. System Revisions - procedure
City responsibilities for System Revisions (three main tasks)
Send a system revision request to the DSAE by March 1st. Requests should include the following:
A letter (or ) from the city engineer requesting the system revision. The letter should list streets, termini and mileages being designated or revoked. Explain how the revision meets the criteria in State Aid Rules and
Please provide a map with the system revisions highlighted.
After receiving an approval letter from State Aid, pass a City Council resolution approving the changes and send the resolution to DSAE. The resolution should be received by May 1st to be included in that year’s Needs updates.
Input the system revision into the Needs. When the Commissioner’s Order is processed, the revision will be official.

19. System Revision Requests – sample request
Other sample letters are available upon request.
System Revision Requests – sample request

20. System Revision Requests – sample request map
City has highlighted their proposed revisions

21. System Revision Requests – City Council resolutions
MSAS numbers and mileages are not necessary in resolutions. Only street names and termini are needed
Actual samples are available upon request
Other sample templates (either for revocations, or for resolutions concurring with County Board actions) are available in the State Aid Manual.
State Aid Manual -

22. Needs updating: due either March 31st, or May 1st
Two deadlines for submitting Needs updates:
March 31st if you don’t have a System Revision this year.
May 1st if you DO have a System Revision this year
Whether you’ve had a system revision or not – you should update and submit your NEEDS!
Needs defined: For each city, this is defined as the estimated cost of constructing and maintaining the Municipal State-Aid Street System for a period of 25 years. (MS subd 2)

23. Needs updating – Needs application
MSAS webpage -
SANEEDS 3
The latest version of the Application is in production!
See “City User Instructions” on the MSAS webpage.

24. Needs updating – instructions sample
Link for these instructions is right under the link to get into the Needs Application.
View the full user instructions on the MSAS webpage.

25. Needs updating – segmentation
Segments should be numbered west to east or south to north. Full instructions for Needs Updating are sent out every January when we reset the Needs.

26. Needs updating – Traffic
See MnDOT’s Traffic Counting Schedule at:
Or contact the Traffic Volume Program.
If you create a new MSAS segment due to a system revision, the city is responsible for the initial traffic count. Beyond that, State Aid will maintain the AADT for that segment (and all existing segments) using traffic counts provided by MnDOT’s Traffic Volume Program

27. Needs updating – Traffic
Traffic Data, Traffic Counting Schedules, and Contact Information for MnDOT’s Traffic Volume Program can be found here:

28. Needs updating – After the Fact Needs
Cities can receive positive Needs Adjustments for the following costs:
Right of Way purchases (15 year adjustment)
Retaining Walls (15 year adjustment)
Railroad Crossing Expenditures (15 year adjustment)
Railroad Bridges over a Municipal State Aid Route (15 years for rehab. 35 years for construction)
See MSB resolutions for details on ATF adjustments.
After the Fact Adjustments are not managed in the Needs Application. To request an adjustment, download the “After-the-fact Needs Request Form” from the website below, then your request to the DSAE.

29. Maintenance Requests: due December 15th

30. Maintenance Requests
Purpose A portion of a city’s annual apportionment is required to be set aside for maintenance. Maintenance Requests are due annually by December 15th. This process allows State Aid to know the appropriate allotment for a city’s Maintenance Account.

31. Maintenance Request - options
State aid rules (described in State Aid Operational Rule subp.3.)  state a city can request a Maintenance Allotment based on one of the following four options:
$1,500 per Improved Mile
25% of the city’s total allocation
35% of the city’s total allocation
A lump sum dollar amount, which is greater than $1,500 per Improved mile, but not more than 35% of the city’s total allocation
Bond interest, if any, will be added onto the requested option.
If a city has never submitted a request, its Maintenance Allotment is computed at the minimum of $1,500/Improved Mile plus bond interest (if any).

32. Maintenance Requests – Expenditure Reports
A Maintenance Expenditure Report is required from the city if:
Your maintenance request is greater that 25% of your total allocation
Your lump sum request is greater than 25% of your total allocation
Bottom Line: 25% is the maximum maintenance request you can have without having to fill out a Maintenance Expenditure Report.
Full instructions are available on the MSAS webpage at:
Maintenance Expenditure Report can be downloaded here:

33. Questions?
Bill Lanoux