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162.08 MS 1957 [Repealed, 1959 c 500 art 6 s 13]
162.08 ALLOCATION OF APPORTIONMENTS.
    Subdivision 1. Allocation for cities having less than 5,000 population. Upon determining
the sum of money to be apportioned to each county as hereinbefore provided, the commissioner
shall allocate a percentage of such sum for expenditure solely on those portions of each county's
county state-aid highways located within cities having a population of less than 5,000, according
to the last federal decennial census, or, if incorporated during the ten-year period between federal
decennial censuses, according to their incorporation census. The percentage so allocated shall
equal the percentage that the total needs of the county state-aid highway system in such cities
bears to the total county state-aid highway needs in each county. Money so allocated shall be
set apart and credited to the municipal account of each county.
    Subd. 2. Statement of amount apportioned and allocated. Upon determining the amount
of money to be apportioned to each of the counties and the sum of such amount to be allocated
for expenditure on those county state-aid highways located within cities having a population
of less than 5,000, the commissioner shall forthwith send a statement of the amount to the
commissioner of finance, and the county auditor and county engineer of each county. The amounts
so apportioned and allocated to each county shall be paid by the state to the treasurer of each
county out of the county state-aid highway fund as hereinafter provided, and in accordance with
rules made and promulgated by the commissioner not inconsistent herewith.
    Subd. 3. Aid to towns. (a) Any county having within its boundaries organized town
governments may, by resolution, allocate to the towns within its boundaries so much of the money
apportioned to it under the provisions of sections 162.01 to 162.181, that it deems necessary to
aid in the construction of town roads, including replacement of town road signs. The resolution
shall set forth the amount of money or the percentage of its apportionment that the county has
allocated to the towns. A certified copy of the resolution shall be forwarded to the commissioner
on or before the second Tuesday of January of each year. Upon receipt of such resolution and
upon determining the amount of money to be apportioned to the county, the commissioner shall
certify to the commissioner of finance the amount of money, as set forth in the resolution, that
is to be paid out of the county's apportionment for distribution to the towns. The commissioner
of finance shall thereupon issue a warrant in that amount payable to the county treasurer, and
the proceeds thereof shall be distributed by the county to the towns. All money so allocated
and distributed shall be used by the towns solely for the construction of town roads, including
replacement of town road signs.
(b) Each county board so allocating such funds may devise a formula taking into account
each town's levy for road and bridge purposes, its mileage of town roads and population outside
the corporate limits of all cities within the township, and such other factors as the county board
shall deem advisable as a means of dividing the allocation among the several towns in order that
such division among the towns be as equitable as possible. No part of the money allocated for
expenditure solely within cities having a population of less than 5,000 shall be allocated or
distributed to the towns. The commissioner of transportation shall maintain a permanent record of
the allocations of county state-aid highway funds for the townships in each county.
(c) In making the annual apportionments of county state-aid highway funds, the
commissioner shall reduce the money needs of said counties in the amounts necessary to equalize
their status with those counties not making such allotments. In complying with this paragraph, the
commissioner shall disregard allotments to towns for replacement of town road signs.
    Subd. 4. Purposes; other uses of municipal account allocation. (a) Except as provided
in subdivision 3, money so apportioned and allocated to each county shall be used for aid in
the establishment, location, construction, reconstruction, improvement, and maintenance of
the county state-aid highway system within each county, including the expense of sidewalks,
commissioner-approved signals and safety devices on county state-aid highways, and systems
that permit an emergency vehicle operator to activate a green traffic signal for the emergency
vehicle; provided, that in the event of hardship, or in the event that the county state-aid highway
system of any county is improved to the standards set forth in the commissioner's rules, a portion
of the money apportioned other than the money allocated for expenditures within cities having a
population of less than 5,000, may be used on other roads within the county with the consent and
in accordance with the commissioner's rules.
(b) If the portion of the county state-aid highway system lying within cities having a
population of less than 5,000 is improved to the standard set forth in the commissioner's rules, a
portion of the money credited to the municipal account may be used on other county highways or
other streets lying within such cities. Upon the authorization of the commissioner, a county may
expend accumulated municipal account funds on county state-aid highways within the county
outside of cities having a population of less than 5,000. The commissioner shall authorize the
expenditure if:
(1) the county submits a written request to the commissioner and holds a hearing within 30
days of the request to receive and consider any objections by the governing bodies of cities within
the county having a population of less than 5,000; and
(2) no written objection is filed with the commissioner by any such city within 14 days of
that hearing as provided in this subdivision.
The county shall notify all of the cities of the public hearing by certified mail and shall notify
the commissioner in writing of the results of the hearing and any objections to the use of the
funds as requested by the county.
(c) If, within 14 days of the hearing under paragraph (b), a city having a population of
less than 5,000 files a written objection with the commissioner identifying a specific county
state-aid highway within the city which is requested for improvement, the commissioner shall
investigate the nature of the requested improvement. Notwithstanding paragraph (b), clause (2),
the commissioner may authorize the expenditure requested by the county if:
(1) the identified highway is not deficient in meeting minimum state-aid street standards;
(2) the county shows evidence that the identified highway has been programmed for
construction in the county's five-year capital improvement budget in a manner consistent with
the county's transportation plan; or
(3) there are conditions created by or within the city and beyond the control of the county
that prohibit programming or constructing the identified highway.
(d) Notwithstanding any contrary provisions of paragraph (b) or (c), accumulated balances in
excess of two years of municipal account apportionments may be spent on projects located outside
of municipalities under 5,000 population when approved solely by resolution of the county board.
(e) Authorization for use of municipal account funds on county state-aid highways outside of
cities having a population of less than 5,000 shall be applicable only to the county's accumulated
and current year allocation. Future municipal account allocations shall be used as directed by
law unless subsequent requests are made by the county and approved by the commissioner, or
approved by resolution of the county board, as applicable, in accordance with the applicable
provisions of this section.
    Subd. 5. Advances to municipal account. Any county may make advances from any
available funds, including funds made available by a city pursuant to subdivision 6 to the
municipal account for the purpose of completing work on any portion of its county state-aid
highway system within cities having a population of less than 5,000. Any advances shall be repaid
by deducting an amount equal thereto from money accruing to the municipal account. Advances
heretofore made shall be repaid in like manner.
    Subd. 6. Advances of city funds; financing. Any city having a population of less than 5,000
may, by agreement with the county pursuant to section 162.17, subdivision 2, and under rules of
the commissioner and with the commissioner's consent, use available funds for the purpose of
accelerating construction of any portion of the county state-aid highway system within its limits.
To finance such construction, the city may issue its obligations to the same extent and in the
same manner as for financing construction of any other street. By such agreement, the county
may pledge itself to use any part of one or more future allotments to its municipal account to
reimburse the city for all or any portion of the money so spent by the city, not including interest
on obligations issued to finance the project. A copy of the agreement shall be filed with the
commissioner. Thereafter, as allotments are credited annually to the municipal account of the
county, the commissioner shall certify to the commissioner of finance that payments to the county
may be made in the amounts and at the times specified in the agreement within the limits of
the amounts so credited. The county shall pay funds so received to the city in accordance with
the terms of the agreement.
    Subd. 7. Advances other than to municipal account. Any county may make advances from
any available funds for the purpose of expediting the construction, reconstruction, improvement
and maintenance of its county state-aid highway system. Advances made by any county as
provided herein, other than advances made to the municipal account, shall be repaid out of
subsequent apportionments to the county's maintenance or construction account in accordance
with the commissioner's rules.
    Subd. 8. County may appropriate additional money. The amount of money to be
appropriated by the counties from other funds for use in the establishment, location, construction,
reconstruction, improvement, and maintenance of the county state-aid highway system is left to
the discretion of the individual county boards. Nothing contained herein shall restrict or prohibit
a county board from using money collected from county road and bridge levies to provide, by
mutual agreement, financial assistance or services not otherwise prohibited by law to townships
and municipalities within its borders.
    Subd. 9. Maintenance. Not more than 40 percent of the money so apportioned and allocated
to each county shall be set aside in separate accounts for the maintenance of the county state-aid
highway system in the counties; provided, that upon good cause shown and in accordance with
the commissioner's rules, the commissioner may set aside an additional percentage for the
maintenance of any county state-aid highway system. Money so set aside shall be paid to the
several counties in accordance with the rules of the commissioner.
    Subd. 10. Project approval, reports. When the county board of any county determines to do
any construction work on a county state-aid highway or other road eligible for the expenditure
of state aid funds within the county, and desires to expend on such work a portion of the money
apportioned or allocated to it out of the county state-aid highway fund, the county shall first
obtain approval of the project by the commissioner. Thereafter the county engineer shall make
such reports in such manner as the commissioner requires under rules of the commissioner. Upon
receipt of satisfactory reports, the commissioner shall certify to the commissioner of finance the
amount of money that is eligible to be paid from the county's apportionment or allocation for the
work under contract or actually completed. The commissioner of finance shall thereupon issue a
warrant in that amount payable to the county treasurer. In no event shall the warrant with all other
warrants issued exceed the amount apportioned and allocated to the county.
    Subd. 11. Certification required to issue warrants. The commissioner of finance shall not
issue any warrants without the certification of the commissioner.
History: 1959 c 500 art 3 s 8; 1961 c 563 s 4; 1963 c 244 s 1; 1963 c 734 s 1; 1973 c 123
art 5 s 7; 1973 c 492 s 14; 1975 c 193 s 1; 1976 c 166 s 7; 1978 c 686 s 1; 1Sp1981 c 4 art 1
s 84; 1985 c 248 s 70; 1986 c 444; 1993 c 92 s 1; 1996 c 455 art 3 s 15,16; 1996 c 456 s 19;
1Sp2005 c 6 art 3 s 12

Official Publication of the State of Minnesota
Revisor of Statutes