The Small City Arterial Program was formally established by the Legislature in 1995. Before its creation, small city projects were funded with a portion of the revenue distributed to the Urban Arterial Program and Urban Corridor Program.

Projects preserve and improve the arterial roadway system consistent with local needs in cities with a population less than 5,000.

An arterial must meet at least one of the following conditions to be eligible for TIB funding:

• Serves as a logical extension of a county arterial or state highway into the corporate limits
• Serves as a route connecting local generators such as schools, medical facilities, social centers, recreational areas, commercial centers or industrial sites
• Acts as a bypass or truck route to relieve the central core area

The intent of the Small City Arterial Program is to reconstruct roadways.  Conditions apply include serving as an extension of a county arterial or state highway, connecting to local generators, or is a bypass to relieve central core congestion.  General criteria include:

• Funds are distributed across three regions based on small city populations.
• Local match required if the population is over 500 residents. Local match requirements: Under 500 population – no match required;
  Population 500 and over – 5% local match required