HomeMy WebLinkAbout10B - MSAS Maintenance Allocation
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
JUNE 26, 2006
10B
STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS
CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING CITY STAFF
TO REQUEST AND INCREASE IN THE MUNICIPAL STATE AID SYSTEM
STREET MAINTENANCE ALLOCATION
DISCUSSION:
Introduction
The purpose of this agenda item is to authorize City staff to request an
increase in the Municipal State Aid System (MSAS) Street Maintenance
Allocation.
History
The City of Prior Lake currently receives $661,832 annually for our MSAS
Street System. $165,448 or 25% of this funding is allocated for maintenance
of MSAS Streets which have been designated by the City. This funding source
is part of the Street Department budget and is used for overlaying, crack-
sealing, seal-coating and other street maintenance activities. The balance of
the annual funding goes to MSAS construction projects in the City.
Current Circumstances
The City of Prior Lake currently has 18.05 miles of local state aid streets for
which the maintenance dollars received for MSAS can be utilized. However
because to the costs of upcoming County projects involving state aid streets
the City's entire construction allocation for the 2007-2011 CIP has been
allocated to County Road projects. No construction dollars from the City's
MSAS will be available for City MSAS Streets.
In an effort to continue to maintain City streets and not impact taxes staff is
proposing to increase the MSAS Maintenance allocation to the City. The City
currently receives 25% for maintenance. By law the City can request that up
to 35% be allocated for maintenance. City staff is requesting that the
maintenance allocation be increased from 25% ($165,448) to 32.5%
($215,095). This would allow the City to increase maintenance funding to local
MSAS streets by $50,000 without raising taxes. This money would be
allocated to overlay, seal-coating, crack sealing and other street maintenance
activities. The request would result in a reduction of construction funding to
$446,000.
As part of the 2007-2011 CIP City Staff made the allocation adjustment when
calculating available MSAS dollars for future projects. Therefore the 2007-
2011 CIP will not be impacted if the City Council wishes to increase the
maintenance allocation.
ISSUES:
City street maintenance funding is not matching the rate that streets are added
to the City. Additionally all future MSAS construction dollars are allocated to
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Phone 952.447.4230 / Fax 952.447.4245
County Road projects in the 2007-2011 CIP. The available funding sources
that do not impact taxes are very limited.
FINANCIAL
IMPACT:
City Staff has already adjusted the 2007-2011 CIP to reflect the MSAS funding
allocation change. If the Council chooses not to make the change more MSAS
constructions funds will be available for use in the CIP. The proposed change
will allow the City to minimize tax increases due to street maintenance by
utilizing an alternative source of funding.
ALTERNATIVES:
1. Approve a resolution authorizing staff to request and increase in the
MSAS Maintenance funding allocation.
2. Deny this agenda item for a specific reason and provide staff with
direction.
3. Table this item to a certain date in the future.
RECOMMENDED
MOTION:
Staff recommends alternative number 1.
R\Agenda Reports\June 26 2006\MSA Main! Agenda.doc
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 06-xx
CONSIDER APPROVAL OF RESOLUTION AUTHORIZING CITY STAFF TO REQUEST AN
INCREASE IN THE MSAS MAINTENANCE ALLOCATION
Motion By:
Second By:
WHEREAS, The City of Prior Lake continues to grow and add streets to the Municipal State Aid
System (MSAS); and
WHEREAS, Due to County Road projects no MSAS street construction funding is available for City
MSAS streets in the 2007-2011 CIP; and
WHEREAS, City Staff is proposing to increase the maintenance allocation from 25% to 32.5% or by
$50,000; and
WHEREAS, The 2007-2011 CIP has been proposed considering this impact; and
WHEREAS, The increase will allow the City Council to minimize street department maintenance
funding impacts to taxpayers.
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. City Staff is authorized to request an increase in the MSAS Maintenance funding allocation from
25% to 32.5%.
PASSED AND ADOPTED THIS 26TH DAY OF JUNE, 2006.
YES
NO
Haugen Haugen
Dornbush Dornbush
Erickson Erickson
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
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Phone 952.447.4230 / Fax 952.447.4245