ITEM 3.4 Advance Municipal State AidO t- T
Y OF0IIINN
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
November 12, 2019
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Administrator/Finance Director Flaherty
3.4
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
ARE YOU SEEKING APPROVAL OF A CONTRACT?
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
BACKGROUND/JUSTIFICATION:
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
completed in 2019 due to the ever-increasing traffic on local streets (83rd Street, 80th Street, and Mason
Is a social community with diverse housing, service options, and employment opportunities.
State Aid account, municipalities are allowed to advance state aid funds up to five times their annual
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council approve a resolution to advance Municipal State Aid.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
City council has determined construction of 85th St and MacIver Ave (state aid streets) was a priority to be
completed in 2019 due to the ever-increasing traffic on local streets (83rd Street, 80th Street, and Mason
Avenue) and the opening of the Prairie View School. Due to the availability of funds within the Municipal
State Aid account, municipalities are allowed to advance state aid funds up to five times their annual
construction allotment. Basically, this borrowing ahead would be reimbursed by the City using future state
aid construction allotments until the advancement is paid back. Financially, this is the best option for the
City as other options such as bonding include soft costs and interest payments while advancement of state
aid funds amounts to a 0% interest loan with no soft costs.
SUPPORTING DOCUMENTS ATTACHED:
0 Resolution 2019-67
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2019-67 requesting Municipal State Aid Street Funds Advancement.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
RESOLUTION NO. 2019-67
MUNICIPAL STATE AID STREET FUNDS ADVANCE
WHEREAS, The Municipality of Otsego has continued construction of
Municipal State Aid Street Projects 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 continue with the construction
of said projects 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,
Total Disbursements $4,788,300.77
2018 & 2019 Pay Back $737,728.35
Advancement Amount $4,050,572.42
(amount of disbursements in excess of acct balance)
Max Allowed Adv Amount (5 x $724,931) $3,624,655.00
WHEREAS, repayment of the funds so advanced will be made in
accordance with the provisions of Minnesota Statures 162.144, 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 COMMISSION
OF TRANSPORTATION, be and is hereby requested to approve this advance for
financing approved Municipal State Aid Street Project(s) of the Municipality of
Otsego in an amount up to $3,624,655. 1 hereby authorize repayments from
subsequent accruals to the Municipal State Aid Street Construction Account of said
Municipality from future year allocations until fully repaid.
I HEREBY CERTIFY that the above is a true and correct copy of a
resolution presented to and adopted WHEREAS, the advance is based on the
following determination of estimated expenditures by the Municipality of Otsego,
County of Wright, State of Minnesota, at a duly authorized Municipal Council
Meeting held in the Municipality of Otsego, Minnesota on the 12th day of
November, 2019, as disclosed by the records of said Municipality on file and of
record in the office.
Adopted by the City Council of the City of Otsego this 12th day of November,
2019.
Motion By:
Second By:
All in Favor:
Those Opposed:
CITY OF OTSEGO
BY:
Jessica L. Stockamp, Mayor
ATTEST:
Tami Loff, Clerk