HomeMy WebLinkAbout7C- MSA Funds 1997
DATE:
7C
JOHN WINGARD, ASSISTANT CITY ENGINEER
CONSIDER APPROVAL OF RESOLUTION
REQUESTING ADVANCED ENCUMBRANCE OF
FUNDS FOR 1997
MAY 6,1996
96-50
MSA
AGENDA #:
PREP ARED BY:
SUBJECT:
INTRODUCTION:
The purpose of this Agenda item is to consider approval of
Resolution 96-50 requesting Advanced Encumbrance of Municipal
State Aid (MSA) Funds from year 1997 funds to be used in 1996.
The City's request is to advance $302,231 to be used for the
Northwood Road project.
BACKGROUND:
The approval of the Northwood Road project will require funding
of $700,000 from the City's MSA funds.
The following table shows the allotments that have been credited
to the City's MSA Construction Fund during the past years:
1994
1995
1996
1997
$257,736.00
$263,095.00
$302,231.00
$302,231.00*
* The 1997 allotment has not been calculated yet, so this number is an estimated
amount.
The City has spent the 1994 and 1995 MSA money on other State
Aid Streets such as Carriage Hills Parkway and Fish Point Road.
The balance of the State Aid Fund at the end of 1995 was
$111,658.33. By adding the 1996 and 1997 MSA funding to this
balance, then the City should have over $700,000 available to fund
the N orthwood Road proj ect.
162~kED&Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
DISCUSSION:
The MSA rules for fund advancement are as follows:
A. Cities with less than $500,000 total allocation can advance up
to 3 times their previous years allotment or $500,000
whichever is less.
Example:
$150,000 allocation - maximum advance $450,000.
$200,000 allocation - maximum advance $500,000.
B. Advances must be repaid from the next available allotments.
After payment of advance, another advance can be made
from the next year's allocation.
C. Request must be in resolution form. (Governed by Rules)
The attached resolution is in the format submitted by
MnDOT.
The advanced encumbrance proposed does not place the City at
risk and does maximize the amount of MSA funds allocated to
Prior Lake.
ALTERNATIVES:
The alternatives are as follows:
1. Approve Resolution 96-50 approving the Request for
Advanced Encumbrance of MSA Funds for 1997.
2. Approve Resolution 96-50 subject to Council approved
changes.
3. Continue the hearing for a specific reason.
RECOMMENDATION: The recommendation is Alternative No.1.
FINANCIAL IMPACT: The City does not receive interest on money kept in the State Aid
Account. Also, by keeping a low or zero balance in the State Aid
Account, the City's annual allocation is higher.
ACTION REQUIRED: Make a motion and second to approve, deny or modify Resolution
96-50. ~
1
MSAFUNDS.DOC
RESOLUTION 96-50
RESOLUTION APPROVING REQUEST FOR ADVANCED ENCUMBRANCE
OF GENERAL STATE AID FUNDS FOR 1997
MOTION BY:
SECONDED BY:
WHEREAS, the City of Prior Lake is planning on implementing Municipal State Aid Street
Projects in 1996 which will require State Aid funds in excess of those available in
its State Aid Construction Account, and
WHEREAS, said City of Prior Lake is prepared to proceed with the construction of said
projects through the use of advance encumbrances from the general State Aid
Construction Account to supplement the available funds in their State Aid
Construction Account, and
WHEREAS, repayment of the funds so advanced will be made in accordance with the
provisions of Minnesota Statutes 162.14, Subdivision 6 and Minnesota Rules,
Chapter 8820.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOT A, that the Commissioner of Transportation be and is hereby requested to approve
this advance for financing approved Municipal State Aid Street Projects of the City of Prior Lake
in an amount up to $302,231 in accordance with Minnesota Rules 8820.1500, Subparagraph 9,
and to authorize repayments from the following year's accruals to the Construction Account of
the Municipal State Aid Street fund for said city.
I HEREBY CERTIFY that the above is a true and correct copy of a resolution presented to and
adopted by the City of Prior Lake, County of Scott, State of Minnesota. at a duly authorized
meeting thereof held in the City of Prior Lake, Minnesota on the 6th C-iY of May, 1996, as
disclosed by the records of said City on file and of record in the office.
Passed and adopted this 6th day of May, 1996.
162~fup&eek Ave. S.E.. Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQLiAL OPPORTLiNIT'{ EMPLOYER
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YES NO
Andren Andren -
Greenfield Greenfield
-
Kedrowski Kedrowski -
Mader Mader
-
Schenck Schenck
-
Frank. Boyles
City Manager
City of Prior Lake
{ Seal}
MSAFUNDS.DOC