Item 3.11 State Aidot C1e F o
MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Public Works
City Engineer Wagner
February 8, 2021
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Administrator/Finance Director Flaherty
3.11
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
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
BACKG RO U N D/J UST I FI CATI O N :
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 will be reimbursed by the City using future state aid construction allotments until the advancement
is paid back.
The current advancement of funds was used to finance the construction of the 85th Street and Maciver
Avenue extension projects, which were completed in 2020.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2021-08
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Resolution 2021-08 Requesting Municipal State -Aid Street Funds Advancement.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2021-08
REQUESTING MUNICIPAL STATE -AID
STREET FUNDS ADVANCEMENT
WHEREAS, The City of Otsego is continuing to request State Aid reimbursements for construction
and settlements for obtaining right-of-way for Municipal State Aid Street Projects in 2021 which
will require State Aid funds in excess of those available in its State Aid Construction Account; and
WHEREAS, the City 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; and
Otsego State Aid Construction
Account Balance as of 12/31/20
2021 Otsego Municipal Street State Aid
Construction Amount
2021 Otsego Request for Additional Advancement
Total Otsego Requested Advancement Amount
Max Otsego Allowed Advancement Amount (5 x $713,726)
-$3,624,655
$ 713,726
-$ 494,000
-$3,404,929
-$3,568,631
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, State Aid has determined the City of Otsego met the criteria to be advance funded
based on the project completion and the limited availability of funds in the Municipal State Aid
Street Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the Commission of Transportation is hereby requested to approve this advance for
financing approved Municipal State Aid Street Projects) of the City of Otsego in an
amount up to $3,404,929; and hereby authorize repayments from subsequent accruals to
the Municipal State Aid Street Construction Account of the City of Otsego from future year
allocations until fully repaid.
ADOPTED by the Otsego City Council this 8th day of February, 2021.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica L. Stockamp1 Mayor
ATTEST:
Audra Etzel, City Clerk