County to look at road funding options; Board instructs Public Works director to study local options sales tax

Published 10:29 am Wednesday, September 23, 2015

The Mower County board is revving its way into discussions on highway funding.

The county board plans to instruct Public Works Director Mike Hanson to compile a list of road and bridge projects that would be completed in five year or 10 years, should the board ever decide to enact a local option sales tax of up to half a cent to fund road projects.

“I think we do need to have Mike take a look at that and give us kind of an idea so we have something to discuss,” board Chairman Mike Ankeny said during Tuesday’s regular board meeting.

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The board has informally discussed the half-cent sales tax on several occasions as a way to fund repairs to county infrastructure. With doubts about state funding and the public frequently calling county employees and commissioners to express concern over road and bridge conditions, the issue of road conditions has come up often in recent months. In August, County Coordinator Craig Oscarson told the board it was likely only a matter of time until they discussed it formally after Freeborn and other neighboring counties have approved the tax.

Commissioners went on to say instructing Hanson to compile a list isn’t an indication they’d approve a local options sales tax; the board just wants more information before ramping up discussions.

“I think that this is an issue that’s going to come up, and I think Mike needs to start working on this,” Ankeny said.

In 2013, the state approved a wheelage tax and a half-cent sales tax as options for counties to fund local road and bridge projects, which county officials have called a way for the state to pass off road funding to local government. Mower commissioners approved a $10 wheelage tax in June 2013, which is paid when drivers renew licenses and is estimated to bring in $357,000 a year. However, county officials have said that fund is used for maintenance and is too small to fund costly road projects.

Hanson previously estimated the half-cent sales tax could net as much as $2 million a year for specific road projects, but commissioners have complained about the sales tax being another instance of the state shifting the burden of road funding to counties.

Such funding for road repairs has traditionally come from the state but transportation talks haven’t netted any funding in St. Paul. Mower commissioners haven’t stayed quiet about their displeasure since the Minnesota Legislature failed to address road funding in its session, even though it had a $2 billion surplus and transportation had been dubbed a top issues.

Oscarson has pointed out the half-cent sales tax is a double-edged sword. Traditionally much of the road funding money would come from the gas tax or other state revenue sources. A half-cent sales tax would essentially surpass funding shortfalls at the state, but county leaders fear it could send a message to the state that it can continue putting off the problem. Oscarson has urged the board to push the state to address transportation funding concerns, but he’s also noted other counties approving a half-cent sales tax may already be sending the state the message that it can push the issue off. Then Mower could also lose ground on maintaing roads in comparison to neighboring counties.

Despite little action in the state, county officials admit the need for road funding is significant, and commissioners have noted that they need some way to fund repairs to the 400 miles of road and 59 structurally deficient bridges.

“We do have issues out there and we’re constantly getting phone calls,” Ankeny said.

Hanson previously told the board that money collected through a potential local option sales tax would be used quickly, should the board go that route. It would take about $15 million to replace 25 deficient county bridges and about $4.6 million to replace 34 deficient township bridges without even addressing roads, Hanson has said.

In recent years, commissioners have received frequent calls about road conditions, and Commissioner Jerry Reinartz said they’ll likely get many calls when they start discussion on the half-cent sales tax.

“Just like the recycling, I’m sure we’ll get a lot of feedback,” Reinartz said.

If the county approved a local option sales tax for roads, Oscarson said it likely would not affect the levy, as it would be used on additional projects above the regularly planned road projects, which would still occur.