1. Minnesota Department of Transportation

2. Where Do State Aid Funds Come From?

3. Minnesota Highway Users Tax Distribution Fund GAS TAX REVENUE 07/01/04 to 11/30/04 (Actual) $286,423,430 12/01/04 to 06/30/05 (Estimated) $369,463,787 TOTAL$655,887,217 MOTOR VEHICLE TAX 07/01/04 to 11/30/04 (Actual) $181,728,414 12/01/04 to 06/30/05 (Estimated) $318,112,695 TOTAL$499,841,109 INTEREST EARNED 07/01/04 to 11/30/04 (Actual) $172,647 12/01/04 to 06/30/05 (Estimated) $847,353 TOTAL $1,020,000 Total Highway Users Fund $1,321,982,905 MOTOR VEHICLE SALES TAX 30% 07/01/04 to 11/30/04 (Actual) $71,008,264 12/01/04 to 06/30/05 (Estimated) $94,226,315 TOTAL$165,234,579 (2005 $’s used in this slide)

4. Minnesota Highway Users Tax Distribution Fund Total Highway Users Fund $1,321,982,905 Collection Costs and Refunds to DNR, Public Safety, Revenue, Administration, etc. $40,149,027 Special 5% Distribution $64,091,694 Regular Distribution $1,217,742,184 Special 5% - $64,091,694 Town Bridge Account16% Town Road Account30.5% Flexible Highway Account 53.5% Regular 95% - $1,217,742,184 Trunk Highway Fund62% County State Aid Highway Fund 29% Municipal State Aid Street Fund 9% (2005 $’s Used in this slide) Trunk Highway Fund $755,000,154 To Mn/DOT

5. Highway Users Fund – Special 5% Special 5% Distribution $64,091,694 Town Bridge Account16% Town Road Account30.5% Flexible Highway Account 53.5% Town Road Account $19,547,967 + 277,851 $19,825,818 Apportioned to individual counties based on township road mileage open to traffic at least 8 months/year. Further apportioned to townships based on formula adopted by individual county boards. To be used for the construction and maintenance of township roads. Flexible Highway Account $34,289,056 Municipal Turnback Account - $8,300,000 Not to be apportioned to individual municipalities. To be used for the restoration of former Trunk Highways that have reverted to the municipalities and been designated MSASs. County Turnback Account - $25,989,056 Not apportioned to individual counties. To be used for the restoration of former Trunk Highways that have reverted to the counties and been designated CSAHs Trunk Highway Fund - $0 To be used for state road construction and engineering costs. Town Bridge Account $10,254,671 + $145,758 $10,400,429 - 3,120,129 $7,280,300 Apportionment to individual counties based on needs of deficient township bridges. Less unallocated account which can be used by any county. To be used for the replacement of deficient township bridges. (2005 $’s Used in this slide)

6. County State Aid Highway Fund Release of Unencumbered State Park $0 County State Aid Highway Fund $353,145,233 Investment Interest Estimate July 2004-June 2005 $5,000,000 Investment Interest FY 2004 Actual vs Estimate ($983,676) Unexpended Balance of 2004 Admin Acct. $598,260 Old Research Contract Closeouts $1,904,844 Unexpended Balance of 2004 Research Account $0 Distribution from Motor Vehicle Sales Tax (.65%) $3,580,083 Federal Reimbursement for State Planning & Research Programs $151,743 Total CSAH Funds Available $368,416,026 (2005 $’s Used in this slide) + + Motor Fuel/Motor Vehicle Taxes FY 2004 Actual vs Estimate $5,019,539 + + + + + + + = 2005 CSAH Apportionment $358,601,844 Apportioned to 87 Individual Counties based on: 10% Equalization 10% Motor Vehicle Registration 30%CSAH Lane Mile 50%CSAH Money Needs Used to construct (60%) and maintain (40%) each county’s CSAH system. Deductions ($9,814,182) Administrative Account $5,526,240 Used to administer CSAH Funds Disaster Fund ($214,203) Used to provide aid for any possible disaster affecting CSAH’s. (Amt. required to keep legal limit – 2% of Total County Apportionment.) Research Account $1,792,307 Used for conducting research involving CSAH’s State Park Road Fund $2,709,838 Used for roads providing access to recreation areas. (Lakes, rivers, parks, etc.)

7. Municipal State Aid Street Fund Municipal State Aid Street Fund $109,596,797 Investment Interest Estimate July 2004-June 2005 $1,500,000 Investment Interest FY 2004 Actual vs Estimate ($543,983) Unexpended Balance of 2004 Admin Acct. $202,354 Old Research Contract Closeouts $689,281 Unexpended Balance of 2004 Research Account $0 Distribution from Motor Vehicle Sales Tax (.17%) $936,329 Federal Reimbursement for State Planning & Research Programs $179,192 Total MSAS Funds Available $114,117,757 (2005 $’s Used in this slide) + + Motor Fuel/Motor Vehicle Taxes FY 2004 Actual vs Estimate $1,557,787 + + + + + + = 2005 MSAS Apportionment $111,823,549 Apportioned to 136 Individual Municipalities based on: 50% Population 50% MSAS Money Needs Used to construct and maintain each municipality’s MSAS system. Deductions ($2,294,208) Administrative Account $1,711,766 Used to administer MSAS Funds Disaster Fund $27,989 Used to provide aid for any possible disaster affecting MSAS’s. (Amt. required to keep legal limit – 3% of Total Municipal Apportionment.) Research Account $554,453 Used for conducting research involving MSAS’s

8. Minnesota Department of Transportation