HomeMy WebLinkAbout5.C.1. Resolution to Obtain Encumberance Funds from MN/DOT State Aid Construction Acct.-Res. No. 6673
s: c. J.
CITY OF SHAKOPEE
Memorandum CONSErir
TO: Mayor & City Council
Mark McNeill, City Administrator
FROM: Bruce Loney, Public Works Director
SUBJECT: Consider Resolution to Obtain Advance Encumbrance
Funds from Mn/DOT State Aid Construction Account
DATE: November 7, 2007
INTRODUCTION:
Attached is Resolution No. 6673, a resolution requesting approval of advanced financing
from Mn/DOT Municipal State Aid Funds.
BACKGROUND:
The City of Shakopee does receive Municipal State Aid Funds from Mn/DOT. The City
of Shakopee is over 5,000 in population and a portion of the gas tax is dedicated for
Municipal State Aid roadways. At this time State Aid has funds available to advance to
Cities. By applying for advanced funding now, it will allow us to receive funds for 1 ih
A venue and it will give us extra funds to put into our account.
Attached to this memorandum is a copy of the MSAS General Advancement Guidelines,
in which Cities in the Municipal State Aid System can advance funds beyond their fund
balance up to five times its previous year's construction allotment, which in Shakopee's
case is $2,690,000.00. The City can apply for advancement for these funds and can
obtain these funds sooner than waiting for the allocations to made in future years. The
advanced funds need to be paid back within 5 years and are deducted annually from
future allocations according to a schedule that is agreed upon between the City of
Shakopee and Mn/DOT. In order to start this process, an initial resolution is needed
indicating to the Mn/DOT Municipal State Aid Department the amount that the City may
choose to have advanced. These funds are paid out on a fIrst come first serve basis
A City Council resolution is required to advance funds for a Municipal State Aid street
projects. Attached to this memo is Resolution No. 6673, and would allow us to start the
proceedings on whether advanced funds would be available to the City. After a specific
project has been authorized for completion, payment requests can be made and the State
can then advance payment to the City as allowed in their procedure.
By advancing Municipal State Aid Funds earlier, the City would be able to withdraw
State Aid funds from the State to the City earlier and earn interest on those funds until
they are utilized. It is important that the City act now to take advantage of this
opportunity.
ALTERNATIVES:
1. Adopt Resolution No. 6673, a resolution requesting approval of advanced
financing on approved Municipal State Aid street projects in the City of
Shakopee.
2. Deny Resolution No. 6673.
3. Table Resolution No. 6673, to allow time for staff to prepare additional
information as directed by City Council.
RECOMMENDATION:
Staff recommends Alternative No.1, to request approval of advanced financing on
approved State Aid street projects for the City of Shakopee.
ACTION REOUESTED:
Offer Resolution No. 6673, A Resolution Requesting Approval of Advanced Financing
on Approved Municipal State Aid Projects in the City of Shakopee in an amount up to
$1,663,391.78 dollars and move its adoption.
b~
Bruce Loney, . .
Public Works Director
BUpmp
ENGR/EFIPPENNINGTON/COUNCILIMEM6673-STATE-AID-FUNDING
RESOLUTION NO. 6673
A Resolution Requesting Approval of Advanced Financing On
Approved Municipal State Aid Projects
WHEREAS, the City of Shakopee has obtained the Commissioner's approval of
the plans for the following Municipal State-Aid Projects (s):
Project # 166-020-08, Project # 166-108-03, Project # 166-119-03
AND WHEREAS, said Municipality completed the construction of said project
(s) by providing local funds to supplement the available funds in the
Municipal/Municipal Turnback Account, and
WHEREAS, repayment of the funds so advanced by the Municipality is desired
in accordance with the provisions of Minnesota Statute 162.14, Subd. 6 and Minnesota
Rules 8820.1500, Subp. 10.
NOW, THEREFORE, BE IT RESOLVED: That the Commissioner of
Transportation be and is hereby requested to approve this advance for financing said
construction project (s) in an amount up to $1,663,391.78 and to authorize repayment in
five equal annual installments from subsequent accruals to the Municipal State Aid Street
Construction Account of the Municipal State Aid Street Fund for the City of Shakopee..
Adopted in session of the City Council of the City of Shakopee,
Minnesota, held this day of ,2007.
Mayor of the City of Shakopee
ATTEST:
City Clerk
ENGRlEFIPPENNINGTON/COUNCILIRES6673-STATE-AID-FUNDING