Cities tell Senate bill allowing trunk‑highway funds for utility relocations could ease major local costs

Senate File 4051, considered March 9 by the Senate Transportation Committee, would allow the trunk‑highway fund to cover certain utility relocation and improvement costs when relocations are required by trunk‑highway projects and the utility has remaining useful life.

Julie Long, Bloomington city engineer and chair of the City Engineers Association working group, told senators the change could produce substantial local savings. She cited examples in which cities faced multimillion‑dollar cost shares for state highway projects and said allowing trunk‑highway funds to pay for required relocations would reduce premature municipal capital spending and ratepayer impacts. "These changes shift financial responsibility to the state for utilities required to move for a trunk‑highway project," Long said, urging support to protect small cities' budgets.

Brash (transcript: city administrator for Baxter) described a grade‑separation project where the city faces nearly $906,000 in utility relocation and improvement costs; with roughly 3,000 utility accounts, the expense would be significant for local ratepayers. MnDOT director Phil (transcript) told the committee the department prefers a July 1, 2027 effective date to match the fiscal year but said a January 1 start could be feasible if stakeholders need an earlier date for contract timing.

Senators moved two implementation amendments to address timing; the committee ultimately placed the bill "on the table" for possible inclusion in a future omnibus package, while thanking sponsors and stakeholders for the collaborative work that produced the proposal.

What happens next: The committee left SF 4051 available for inclusion in an omnibus bill and will return to the language and implementation timing as staff and MnDOT coordinate drafting and fiscal details.