CCP 04-10-2007 - Laserfiche WebLink

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~~ ~~~~ the city that works for yrw Re ort Number: -Q~p A ends Section: -3 Re ort Date A ri13, 2007 Council Meetin Date A ri110, 2007 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: CONSIDER RESOLUTION REQUESTING AN ADVANCE FROM THE MUNICIPAL STATE AID STREET FUND FOR CALENDAR YEAR 2007 DEPARTMENT HEAD'S APPROVAL: C~M~ CITY MANAGER'S APPROVAL: No comments to suvplement this reuort I ,~ Comments attached Recommendation: Adapt the attached resolrxfion REQUESTING AN ADVANCE FROM THE MUNICIPAL STATE AID STREET FUND FOR CALENDAR YEAR 2007. Legislative History: The City Council approved the Feasibility Study for Old Highway 8 on February 27, 2007, which identified Municipal State Aid (MSA) funds as one of the funding sources for this project. Financial Impact: In 2007, the City of New Brighton will have cash needs of approximately $400,000 for the Old Highway 8 Reconstruction project. Explanation: The City of New Brighton receives an annual municipal state aid construction allotment of about $405,000 for our MSA street system. These funds can also be used on County State Aid streets. The annual allotments accrue in the municipal state aid fund and payments from the fund are made to the City when eligible state aid projects are constructed. The City of New Brighton generally has a positive balance in the state aid account, but in recent years, due to an unusually large number of County projects, the fund has been depleted. With the carry-over of the Rice Creek Road project in 2005, it is projected that the City's 2007 allotment will again be fully committed resulting in a zero balance. The State Aid Operations rules provide for municipalities to advance up to $500,000 or the last year's allotment whichever is greater, except in no case may the advance exceed three times the last year's allotment if the municipal state aid fund has sufficient reserves. The municipal state aid fund contains the combined fund reserves of all the MSA municipalities. These advanced funds are essentially an interest free loan and must be repaid in future years from the City's construction allotment. We are recommending an advance of un to the maximum allowable amount of $500,000. As MSA payment requests are submitted by the City, the amounts up to $500,000 would be advanced. It should be noted that while State Aid expects there will only be partial funds available for advances in 2007 and not all requests will be fully fu ed. This means our full request may not be available as an advance in 2007. ~~ Grant M. W~yffels, P.E. Director of Fublic Wor Attachments: Council Resolution