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IItY <br /> EW Report Number 11-213 <br /> TON Agenda Section VI-4 <br /> the city that works for Council Meeting Date August 9,2011 <br /> REQUEST FOR COUNCIL CONSIDERATION <br /> ITEM DESCRIPTION: CONSIDER RESOLUTION REQUESTING AN ADVANCE FROM <br /> THE MUNICIPAL STATE AID STREET FUND FOR CALENDAR YEAR 2011 <br /> DEPARTMENT HEAD'S APPROVAL: ( O <br /> CITY MANAGER'S APPROVAL: <br /> No comments to supplement this report Comments attached <br /> Recommendation: Adopt the attached resolution REQUESTING AN ADVANCE FROM THE <br /> MUNICIPAL STATE AID STREET FUND FOR CALENDAR YEAR 2011. <br /> Legislative History: On January 14, 2003, April 10, 2007 and March 9, 2010 the City Council approved <br /> advances from the Municipal State Aid Street Fund. <br /> The City Council approved the Feasibility Study for City Project 11-1, Street Rehabilitation Project on <br /> March 22, 2011, which identified Municipal State Aid(MSA)funds as one of the funding sources for this <br /> project. <br /> Financial Impact: In 2011, the City of New Brighton will have cash needs in excess of$800,000 for <br /> City Project 11-1 Street Rehabilitation Project. <br /> Explanation: The City of New Brighton receives an annual municipal state aid construction allotment of <br /> about $560,000 for our MSA street system. The annual allotments accrue in the municipal state aid fund <br /> and payments from the fund are made to the City when eligible state aid projects are constructed. <br /> The City of New Brighton generally has a positive balance in the state aid account, but in recent years, <br /> due to an unusually large number of MSA projects, the fund has been depleted. With the carry-over of <br /> the Old Highway 8 project in 2009, and the Silver Lane Reconstruction project in 2010, it is projected that <br /> the City's 2011 allotment will be fully committed resulting in a zero balance. <br /> The State Aid Operations rules provide for municipalities to advance up to four times the municipalities' <br /> last construction allotment or $3,000,000, whichever is less, if the municipal state aid fund has sufficient <br /> reserves. The municipal state aid fund contains the combined fund reserves of all the MSA municipalities. <br /> These advanced funds are essentially an interest free loan and must be repaid in future years from the <br /> City's construction allotment. We are recommending an advance of $800,000. As MSA payment <br /> requests are submitted by the City,the amounts up to $800,000 would be advanced. <br /> Grant M. Wyffels,T.E. <br /> Director of Public Works <br /> Attachments <br /> Resolution <br />