HomeMy WebLinkAbout5(L) State Aid Advance - Report
Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 6, 2019
AGENDA #: 5L
PREPARED BY: ANDY BROTZLER, INTERIM PUBLIC WORKS DIRECTOR
PRESENTED BY: ANDY BROTZLER
AGENDA ITEM:
CONSIDER APPROVAL OF A RESOLUTION REQUESTING ADVANCEMENT
OF MUNICIPAL STATE AID FUNDS.
GOAL AREA AND
OBJECTIVE:
High-Value City Services
1. Establish financial stability for all funds
DISCUSSION: Introduction
The purpose of this item is to make a request to MNDOT for the advancement of
Municipal State Aid Funds.
Current Circumstances
We currently have two projects (consisting of 5 MSA routes) under construction or
close to construction that are proposd to be funded with Municipal State Aid funds.
The MSA routes include: Duluth and Village Lake Drive (210-101-005); Village
Lake Drive to Toronto Avenue (201-113-004); South of Toronto Avenue to South
of Village Lake Drive (201-122-002); TH13 to CSAH21 (201-101-006); and Arcadia
Avenue Design (201-130-002). The proposed MSA funding for these projects is in
excess of ths City’s available account balance as of February 20, 2019.
Minnesota State Statues 162.14, Subdivision 6 allows for city’s to advance funds
from the State Aid Construction Account.
Conclusion
It is recommended that the City request $617,590.79 in advancements from the
State Aid Construction for 2019 Projects.
ISSUES: Municipal State Funds are administered by the Minnesota Department of
Transportation. The funds are limited to use on streets meeting state aid
standards.
The program is administered so that those municipalities which show a greater
“need” generally receive greater funding. The only impact of advancing funds is
the fact that future year allocations may be reduced.
Prior Lake has successfully received advancements over the years.
FINANCIAL
IMPACT:
If the City Council decides not to make a request for advancement or if the City is
unsuccessful in securing advancement funds, Reconstruction Bonds would be
adjusted for these projects accordingly.
The current State Aid balance is $1,493,506.32. Prior Lake’s annual allotment is
received in January of each year and fluctuates slightly each year.
ALTERNATIVES: 1. Motion and second to adopt a resolution as part of the consent agenda
requesting the advancement of State Aid Funds.
2. Motion and second to remove the resolution from the consent agenda for
additional discussion.
RECOMMENDED
MOTION:
Alternative #1
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 19-___
Motion By: Second By:
WHEREAS, the City of Prior Lake is planning to implement Municipal State Aid Street Project(s)
in 2019 which will require State Aid funds in excess of those available in its State
Aid Construction Account; and
WHEREAS, said municipality is prepared to proceed with the construction of said project(s)
through the use of an advance from the Municipal State Aid Street Fund to
supplement the available funds in their State Aid Construction Account; and
WHEREAS, the advance is based on the following determination of estimated expenditures:
Account Balance as of February 20, 2019 $1,493,506.32
Less estimated disbursements:
Project # 201-101-005 $557,150.62
Project #201-113-004 $778,070.51
Project #201-122-002 $184,377.50
Project #201-101-006 $167,069.45
Project #201-130-002 $371,068.55
Project #201-010-006 $ 53,360.16
Bond Principle (if any) $ N/A
Project Finals $ N/A
Other____________ $ N/A
Total Estimated Disbursements $2,111,096.79
Advance Amount (amount in excess of acct balance) $ 617,590.47
WHEREAS, repayment of the funds so advanced will be made in accordance with the
provisions of Minnesota Statutes 162.14, Subd. 6 and Minnesota Rules, Chapter
8820.1500, Subp. 10b; and
WHEREAS, the Municipality acknowledges advance funds are released on a first-come-first-
serve basis and this resolution does not guarantee the availability of funds.
http://splash/teams/am/October 4 2010/05 06 2019/State Aid Advance - RES.docx 2
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. That the Commissioner of Transportation be and is hereby requested to approve this advance for
financing approved Municipal State Aid Street Project(s) of the Municipality of Prior Lake in an amount
up to $627,590.47. I hereby authorize repayments from subsequent accruals to the Municipal State
Aid Street Construction Account of said Municipality from future year allocations until fully repaid.
Passed and adopted by the Prior Lake City Council this 6th day of May 2019.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Michael Plante, City Manager
I HEREBY CERTIFY that the above is a true and correct copy of a resolution presented to
and adopted by the Municipality of Prior Lake, County of Scott, State of Minnesota, at a duly
authorized Municipal Council Meeting held in the Municipality of Prior Lake, Minnesota on the
6th day of May, 2019, as disclosed by the records of said Municipality on file and of record in
the office.
Municipality of Prior Lake _____________________________
Municipal Clerk