This account must be used as a loan or grant to cities, towns, and counties to assist in paying the local share of trunk highway projects that have local costs related to the trunk highway improvement and are not funded or are only partially funded with other state and federal funds. The Legislature authorized General Obligation (GO) Bonds for this account with the purpose to provide loans to local government to help them pay their cost participation share of Mn/DOT projects.

This account must be used as grants or loans for expenditures as specified to cities, towns, and counties to assist in paying the costs of constructing or reconstructing city streets, county highways, or town roads with statewide or regional significance that have not been fully funded through other state, federal, or local funding sources. SALT will establish procedures for the solicitation and criteria for selection in consultation with representatives from the counties, cities, and townships.

The consideration for determining project priority and the amount of the grant or loan is based upon the consideration of:

1. the availability of other state, federal, or local funds;
2. the regional significance of the route;
3. effectiveness of the proposed project in eliminating a transportation system deficiency;
4. the number of persons who will be positively impacted by the project;
5. the project’s contribution to other local, regional, or state economic development or redevelopment efforts; and
6. the ability of the local unit of government to adequately provide for the safe operation and maintenance of the facility upon project completion.

The legislature in the 2005 session amended the Minnesota Statutes §174.52 by adding a subdivision called the Rural Road Safety Account. This account was established in the local road improvement fund and is appropriated to the Commissioner of Transportation for expenditures to be used as grants. Money in the account must be used as grants to the counties to assist in paying the costs of capital improvement projects on County State Aid Highways (CSAH) that are intended primarily to reduce traffic crashes, deaths, injuries and property damage. Eligibility for project selection must be based on the ability of each proposed project to reduce the frequency and severity of crashes.

The Legislature appropriations fund the Local Road Improvement Program from the bond proceeds account in the Minnesota State Transportation Fund. The session law identifies specific dollar amounts and conditions for construction, reconstruction, or reconditioning of local roads with statewide or regional significance for counties to assist in paying the costs of capital improvement projects on CSAHs that are intended primarily to reduce traffic crashes, deaths, injuries, and property damage.

Funding for all local road projects must be applied for and occurs when funding is appropriated by the legislature. The SALT staff advertises when an open solicitation period begins and closes. The Local Road Improvement Program Advisory Committee provides guidance to the SALT office staff in the administration of the program. Local agencies apply for project funding by submitting an application during an open solicitation period. Based on the established criteria for each account, projects are selected. The application can be found on the State Aid Local Road Improvement Program webpage.

Local agencies who are not identified as a State Aid city or county must be sponsored by the county in which they reside. The sponsor must complete these minimum requirements on behalf of a non State Aid city or township; award of the contract, make payments to the contractor, receive the funds for the project. The county board or city council must pass a resolution accepting the terms of the grant, agreeing to pay any costs in excess of the grant amount and to return any unused portion. A copy of the resolution must be submitted to SALT.

Project are designed and processed through the District State Aid Engineers and the normal State Aid plan review and approval.