HomeMy WebLinkAboutItem 06.h
Date: Item No.
RESOLUTION REQUESTING ADVANCE OF
MUNICIPAL STATE AID CONSTRUCTION FUNDS
Proposed Action
Staff recommends adoption of the following motion: Move to approve a resolution requesting
the advance of Municipal State Aid Construction funds.
Overview
The Minnesota Department of Transportation (MnDOT) Office of State Aid is requesting a
resolution to advance Municipal State Aid (MSA) Street Funds in 2017. The City’s current State
Aid Construction Fund has a $324,281 balance and a 2017 Bond Principal payment obligation of
$950,000. The advance in funding will be used to pay the $625,719 balance of the City’s 2017
Bond Principal payment. The advance will be repaid from future allocations to the City’s State
Aid Construction Fund.
Primary Issues to Consider
• An advance is limited to five times the City’s last construction allotment or $4,000,000,
whichever is less, and reduced by any similar outstanding obligations and/or bond
principal payments. The City’s maximum advance eligibility in 2017 is $625,719.
Supporting Information
• None.
Financial Impact: $ Budgeted: Y N Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Zach Johnson, City Engineer
February 21, 2017
N/A
CITY OF LAKEVILLE
RESOLUTION NO. ____
RESOLUTION AUTHORIZING ADVANCE OF MUNICIPAL STATE AID CONSTRUCTION FUNDS
WHEREAS, the Municipality of Lakeville is planning to implement Municipal State Aid
Street Project(s) in 2017 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 02/21/2017 $324,281
Less estimated disbursement (Bond Principal) ($950,000)
Advance Amount (amount in excess of acct balance) $625,719
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.
NOW, THEREFORE, BE IT RESOLVED, that the Commissioner of Transportation is
hereby requested to approve this advance for financing approved Municipal State Aid Street
Project(s) of the Municipality of Lakeville in an amount up to $625,719. The City Council hereby
authorizes repayments from subsequent accruals to the Municipal State Aid Street Construction
Account of said Municipality from future year allocations until fully repaid.
ADOPTED by the Lakeville City Council this 21st day of February, 2017
______________________________
Douglas P. Anderson, Mayor
_________________________________
Charlene Friedges, City Clerk