MN HF5138

Amends Minnesota Statutes to allow cities to use dedicated transportation revenues for debt service on obligations issued under chapter 475, provided the obligations are for allowable transportation uses.

Expands allowable uses of city transportation funds under section 162.145 to include land acquisition, design, engineering, construction, maintenance, and cost participation on road projects, plus new debt service authority.

Adds similar debt service provisions to section 162.146 for additional city transportation funds with identical conditions and allowable uses.

Permits metropolitan counties to use transportation funds received under section 174.49, subdivision 5, for debt service on obligations issued for allowable uses, maintaining existing fund allocation percentages (41.5 percent for active transportation, 41.5 percent for repair and rehabilitation, 17 percent for transit and complete streets).

Excludes county state-aid highway projects from state-aid engineering standards requirements, allowing funds flexibility for certain transportation improvements.