The city receives annual Municipal State Aid (MSA) funding as part of the city's allocation of state gas tax 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. It should be noted that single most influential factor that generates the highest needs and proportion of gas tax funding is the roadway's traffic volume; therefore, it is beneficial to designate the busiest streets under the city's jurisdiction.

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 170 miles of municipal qualifying roadways, of which 32.87 miles can be designated as MSA routes with a balance of 1.12 miles yet to be designated.  

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. 

The citywide roadway network was reviewed including existing MSA streets, current traffic volumes on non-designated MSA roadways, and other roadway network factors. Based on this evaluation, the four streets listed in Table 1 below are recommended to designate as MSA Routes.

Table 1 - Proposed MSAS Route Designations

These roadway segments all meet the state aid criteria listed above and are recommended for designations as a Municipal State Aid Streets (see attached map). The new route designations total 1.10 miles long, leaving a balance of 0.02 miles for future designation.

Establishing Dean Lakes Boulevard, Dean Lakes Trail, Crossings Boulevard and Hansen Avenue as Municipal State Aid Streets will generate additional needs and increase the total allocation percentage of State Aid funding (state gas tax funding) to the city each year. The 2021 allocation is $1,941,206, which is down from the 2020 amount of $2,106,891 due to a smaller overall amount of state gas tax funding available. For 2021, 75 percent of the apportionment is designated revenue for the Capital Improvement Fund ($1,455,904) and the remaining 25 percent is revenue for the Street Maintenance Fund ($485,302).