To be eligible for funding from the transportation improvement account a small city street must be classified as an arterial by the board.

Arterials are paved streets connecting to other paved streets on both ends that are publicly owned by the city or a state route. Arterials must provide circulation within the network or provide access to at least twenty residential units, or equivalent trip generation, per point of access.

Alleys are not considered arterials.

Dead end paved streets may be determined by the board to be arterials if they serve significant generators of traffic or at least twenty residential units or equivalent trip generation.

New streets may be determined by the board to be arterials if they would meet the description of an arterial in this section after they are completed.

Gravel streets may be determined by the board to be arterials if they should be paved based on serving significant traffic generators only if the funded project results in a paved street.