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Re pt Report Niumber 14-242 <br />Agenda Section VI-a10 <br />11im Meeting November Z5, Z014 <br />Be 1� <br />the city that works for YT)u YCOtII 4 <br />REQUEST FOR COUNCIL CONSIDERATION <br />ITEM DESCRIPTION: CONSIDER RESOLUTION REQUESTING AN ADVANCE FROM <br />THE MUNICIPAL STATE AID STREET FUND FOR CALENDAR YEAR 2015 <br />DEPARTMENT HEAD'S APPROVAL: <br />CITY MANAGER'S APPROVAL: [� <br />No comments to suoalement this renor61 -'J, 4` Comments attached <br />Recommendation. Adapt the attached resoWon REQUESTING AN ADVANCE FROM THE MUNICIPAL <br />STATE AID STREET FUND FOR CALENDAR YEAR 2015. <br />Legislative History: On January 14, 2003, April 10, 2007, March 9, 2010, and August 9, 2011 the {City Council <br />approved advances from the Municipal State Aid Street Fund. <br />The City Council accepted the Feasibility Study for City Project 15 -1, Street Rehabilitation Project on November <br />12, 2014, which identified Municipal State Aid (MSA} funds as one of the funding sources for this project. <br />Financial Impact: In 2015, the City of New Brighton is estimated to have cash needs in excess of $1,500,000 <br />for City Project 15 -1 Street Rehabilitation Project. <br />Explanation: The City of New Brighton receives an annual municipal state aid construction allotment of about <br />$560,000 for our MSA street system. The annual allotments accrue in the municipal state aid fund acid payments <br />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, due to an <br />unusually large number of MSA projects, the fund has been depleted. With the carry-over of previously <br />constructed MSA street projects, it is projected that the City's 24115 allotment will be fully committed resulting in <br />a zero balance. <br />The State Aid Operations rules provide for municipalities to advance up to five times the municipalities' last <br />construction allotment or $4,000,000, whichever is less, if the municipal state aid fund has sufficient reserves. The <br />municipal state: aid fund contains the combined fund reserves of all the MSA municipalities. We have notified <br />MSA staff of our intent to request an advance, and they have indicated that funds are available and will be issued <br />on a first -come -first -serve basis. These advanced funds are essentially an interest free loan and must be repaid in <br />future years from the City's construction allotment. We are recommending an advance of $1,000,000. As MSA <br />payment requests are submitted by the City, the amounts up to $1,000,000 would be advanced. <br />rT R <br />Craig UjAchlichting, P.E. <br />Senior Engineering Supervisor <br />Attachments <br />Resolution <br />