(a) A system of state aid streets in each municipality is established to:
(1) Consist of the major and minor arterial and collector routes not on the state highway system feeding into local trade areas or into the state highway system; and
(2) Provide a program for the construction and improvement of state aid streets.
(b)
(1) A state aid system of streets is established for designation by cooperative action of the state and municipalities, as classified and defined in this subchapter.
(2) This system shall be designated by the several mayors or chief executive officers of the respective municipalities with the consent and approval of the state aid engineer.
(c) This subchapter shall not be construed to deprive or diminish the powers and duties of the mayor or chief executive officer of any municipality in the exercise of his or her constitutional control over municipal streets.