The city receives annual Municipal State Aid (MSA) funding for roadway capital improvements and maintenance needs for certain roadways that are designated as MSA routes. These routes are typically regional-type collector or above roadways that carry the higher volumes of traffic throughout the city. City's are allowed to designate up to 20 percent of a city's jurisdictional total length of roads as Municipal State Aid Streets. 

Each year as Shakopee continues to develop and add additional roads, the city accumulates mileage to add additional roadways to the state aid system. The City of Shakopee currently has approximately 169.6 miles of municipal qualifying roadways with 31.80 miles designated and a balance of 2.13 miles yet to be designated.  

Shenandoah Drive from Eastway Drive to Vierling Drive was constructed in 2019 and contributes to the new mileage of roadways added in 2019. Shenandoah is projected to carry upwards of 5,000 vehicles per day and is thus favorable for the city to designate as a MSA Street.

Per State Aid Rule 8820.0800, roadways must be placed on the Municipal State Aid System by City Council resolution in order to incorporate the system changes with the Minnesota Department of Transportation State Aid Office. In addition, the roadways must meet the criteria in State Aid Rules 8820.0700 listed below:

• Projected to carry a relatively heavier traffic volume or is functionally classified as collector or arterial as identified on the urban municipality's functional classification plan;
• Connects the points of major traffic interest, parks, parkways, or recreational areas within an urban municipality; and
• Provides an integrated street system affording, within practical limits, a state-aid street network consistent with projected traffic demands. 

Shenandoah Drive from 4th Avenue to Vierling Drive meets the above criteria and is recommended for designation as a Municipal State Aid Street. This new section is 1.07 miles long, leaving a balance of 1.06 miles yet to be designated (see attached map). City staff will evaluate the most suitable roadway(s) to designate this  remaining allocation in 2021, noting that additional new roadways are continuing to be constructed that will further increase this balance.

Establishing Shenandoah Drive as a Municipal State Aid Street will generate additional needs and increase the total allocation of State Aid funding (state gas tax funding) to the city each year. The 2020 allocation is $2,106,891. A portion of the city's allocation (75 percent) is revenue for the Capital Improvement Fund ($1,580,168) and the remaining 25 percent is revenue for the Street Maintenance Fund ($526,723).

It should be noted that the state's overall increase in the gas tax fund has been flat in recent years. With that said, even though Shakopee's percentage of the overall piece of the pie will increase, the overall pie is not growing so there is not expected to be any notable increase in funding as a result of this new designation.