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The other half of the MSA allocation is based on a very complex, needs-based formula that takes into <br />account system age, condition, and numerous other variables. This needs-based formula is intended to <br />provide aid assuming a 25-year "construction needs" life cycle for the MSA system. <br /> <br />The Mn/DOT State Aid for Local <br />Transportation maintains detailed <br />records documenting the needs of <br />the MSA system, which is used as <br />the basis of the needs based <br />distribution. In order to assess the <br />adequacy of the aid allotments, the <br />2002 City Road and Bridge Funding <br />Survey collected data on 32 MSA <br />eligible cities in order to allow a <br />comparison of MSA revenues to the <br />"annualized needs" computed by the <br />Mn/DOT SALT group. <br /> <br /> Figure 36 <br /> 32 MSA Survey Cities: <br />Needs Compared to MSA Allotment <br /> <br />iD Annualized needs exceed MSA average allotment <br />'i I MSA average allotment exceeds annualized needs <br /> <br />39% <br /> <br />61% <br /> <br />When the average annual MSA <br />allotment is compared to the <br />annualized 25-Year construction <br />needs of each polled city, 19 of 31 <br />cities who reported their MSA revenues indicated that the average allotment since 1997 is less than <br />their annualized 25-Year construction needs. This distribution is reflected in Figure 36. The fact that <br />most cities receive MSA funding allotments that is insufficient to meet all MSA needs is also <br />confirmed by Mn/DOT data that shows the average age of the MSA system aging. <br /> <br />#D-3: MSA systems are being funded at a level that will result in a 53-year life cycle. <br /> <br />Figure 37 <br />Derivation of Life Cycle Estimate of MSA Construction / Reconstruction <br />Total Average Annual Spending on Construction / <br />Reconstruction of MSA System (1997-2001): 32 MSA $28.5 million <br />Survey Cities <br />Total MSA Mileage of 32 Responding Survey Cities 1,158.7 miles <br />Estimated Cost per Mile to Construct / Reconstruct (1) $1.3 million <br />Estimated total cost at $1.3 million/mile to reconstruct $1.506 billion <br />entire MSA system of responding cities <br />Estimated Number of Years to Construct / Reconstruct 52.8 years <br />MSA System (2) i <br />Notes: <br /> (1) The estimated cost per mile to construct or reconstruct MSA roadway mileage was <br /> derived by cost data provided in the survey, in which cities reported on the actual <br /> mileage constructed and the associated cost. The survey indicates that the average <br /> per mile costs were the following: 1997 - $1.1 million; 1998 - $1.0 million; 1999 <br /> - $1.I million; 2000 - $1.3 million; and 2001 - 1.5 million. Our analysis assumes <br /> an estimated cost of $1.3 million per mile. <br /> (2) The estimate is derived by dividing the estimated total cost per mile to reconstruct <br /> the entire MSA system of responding cities ($l .506 billion) by the total average <br /> annual spending on construction / reconstruction based on the results of the survey <br /> ($28.5 million). <br /> <br />Most life cycle <br />standards identify 40 <br />years as the most cost <br />effective life cycle for a <br />paved road system such <br />as those found on <br />Minnesota' s MSA <br />system. While no data <br />is available to pinpoint <br />the actual life <br />expectancy of these <br />roadways given <br />existing funding trends, <br />the survey taken for <br />this report provides <br />information to make an <br />educated estimate. <br /> <br />In a survey of 32 MSA <br />cities, city engineers or <br />staf£were asked to <br />report on the total <br /> <br />37 <br /> <br /> <br />