Loading...
4.3. SR 03-31-1997ity of ITEM 4.3. iver FROM: DATE: SUBJECT: MEMORANDUM Mayor & City Council Lori Johnson, Asst. City Administrator/ Finance Director March 31, 1997 Resolution Authorizing Execution of Sub-Grant Agreement As you know, in January the President declared 55 counties in Minnesota as major disaster areas due to the heavy snow and blizzard conditions. The City of Elk River has received notification that it will receive funds as part of this disaster declaration. A total of $18,304 will be received from federal funds and $3,519 from state funds. State funds will not be released until the legislature approves the state match. The federal funds will be released once the sub-grant agreement has been executed and returned to the Minnesota Division of Emergency Management. Action Requested The Council is asked to approve the attached Resolution Authorizing Execution of Sub-Grant Agreement. \\elkriver\sys\shrdoc\council\subgrant.doc 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 STATE OF MINNESOTA SUB-GRANT AGREEMENT FOR FEDERAL ASSISTANCE UNDER THE INFRASTRUCTURE PROGRAM FOR SUB-GRANTEES Grantor Program: FederaI Disaster Assistance DR- 1158 EXHIFtIT V RESOLUTION AUTHORIZING EXECUTION OF SUB-GRANT AGREEMENT Be it resolved that City of Elk River (Name of organization/Local Unit of Government) enter into a Sub-grant Agreement with the Division of Emergency Management in the Minnesota Department of Public Safety for the program entitled Infrastructure Program for FEMA 1158- DR-MINNESOTA. Patrick D. Klaers, City Administrator is hereby authorized (Name and Title of authorized official) to execute and sign such Sub-grant Agreements and amendments as are necessary to implement the project onbehalfof City of Elk River (Organization/Local Unit of Government) I certify that the above resolution was adopted by the City Council City of Elk River (Executive Body) (Organization/Local Unit of Government) on March 31, 1997 (Date) SIGNED: WITNESSETH: (Signature) Mayor (Title) March 31, 1997 (Date) (Signature) City Clerk (Title) March 31, 1997 (Date) MI~DEM February :20, 199'7 18 ity of iver FROM: DATE: MEMORANDUM Mayor & City Council Pat Klaers, City Ad~/trator March 31, 1997 SUBJECT: CIP Earlier this week the Terry Maurer memo on the status of current projects and the marked up 1996-2000 CIP was distributed. Additionally, with the March 24th agenda packet a comprehensive "wish list" for projects and programs was distributed in anticipation of this 3/31 CIP meeting. This "wish list" material may be the best information to use as we begin to sort out City Council priorities for 1997 and 1998. The situation with our CIP in 1997 is no different than what it has been in previous years, and in simple terms, is that there are more wants and desires for projects than funds are available. The harsh reality of this situation is that the City Council needs to delay lower priority projects (if there is such a thing) until funding is established. At the 3/31 CIP meeting staff hopes to distribute some detailed financial information regarding CIP funding. This information is not yet completed or available for distribution at this time. What follows in this memo is a brief overview of some of our more significant CIP funding sources. A great deal of CIP work relates to street projects and the main source of funding for street projects is the Municipal State Aid (MSA) fund and the Capital Projects reserve. MSA - Almost all of the 1997 monies and part of the 1998 allocation was used in 1996 as a loan for the 1718t street project. After repaying part of this loan and our bond payment from the 1992 projects (the last 1992 bond payment of $185,000 comes from the 1999 MSA allocation), we have a balance of about $24,000 available for 1997 projects. This is not sufficient to cover the 197th signal, County Road I and Highway 10 intersection work, and any city expenses for the County Road I project. Accordingly, we will have to borrow from 1998 monies to do some 1997 projects. We need to limit our MSA expenditures for a few years in order to decrease our dependency on loans from future years. Once we get to the year 2000 and have our full annual 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 CIP Memo Page 2 allocation of over $500,000 we will be in better shape to do necessary street projects. CAPITAL PROJECTS - This is a city catch-all reserve fund that is mostly used for street projects. However, this fund is also used for miscellaneous infrastructure type projects including river rip rap project and our matching share of grants and for such things as part of the city's share of the ice arena project. The city needs to be careful in spending these funds because additional revenues are limited. However, there is a great deal of demand for use of these funds. In 1997, we know that over $350,000 will be spent out of this fund (Joplin south of County Road 30, Joplin signal, Joplin north frontage road, Ulysses north of 171st Street, and Lowell) and the starting balance is less than $400,000. We will be adding $200,000 in revenue to this fund in 1997. If the reconstruction of Dodge and 5th Street proceeds in 1997, then based on the local share being about $265,000, this fund will then end up in the negative. The above MSA and Capital Projects information highlights the emerging need of the city to establish a dependable recurring source of revenues for the city share of street projects. This would not change our policy of assessing out street projects, but the city subsidizing these projects is causing a problem because funds are not available for the city's commitment. The only known dependable recurring source of revenues is the tax levy and this may be impossible if levy limits are approved by the state legislature this session. If this happens we will really have a tough financial issue to address in the immediate future. STREETS- The revenues for this reserve comes from the landfill surcharge which is available for general fund purposes. Some of this money ends up being transferred into the general fund to offset street overlay and seal coating expenditures. $35,000 is listed in the 1997 budget as a transfer. If possible, we cancel this transfer at the end of the year if the budget looks like it is in good shape. As the landfill revenues have increased and some transfers have been canceled, this fund has grown to over $200,000. It is anticipated that we will use this fund to finance the bridge railing that was discussed last year and this may also be a good source of funds for any sidewalk construction/reconstruction program and could also be a source of funds for the city's share of any old core village street and sidewalk reconstruction program. It should be noted that the balance of the landfill money that is available for general fund purposes goes toward the library and city hall (government buildings) fund for debt repayment on the building lease/purchase plans. CIP Memo Page 3 EQUIPMENT AND INFRASTRUCTURE - There are limited new revenues coming into this fund and the 1997 overall balance is lower due to the city's commitment to the ice arena project. This fund is where monies are held in reserve for such things as the police vehicle computer project, the buy down amount on the fire truck, and major equipment repairs that are beyond what is financeable in the general fund budget. The largest amount of monies in this reserve are designated for equipment for streets, parks, and general city needs. PARK DEDICATION- Monies in this fund can only be used for park land acquisition and development. Most of the current balance in this fund will be used in 1997 for the development of the Cass recreation fields and the County Road I trail. Additionally it should be noted that some matching funds may be needed for a successful grant application and if park dedication monies are not available we will have to access the equipment reserve designated for parks or the capital projects fund. The status of this fund and the needs for park and recreation improvements is the reason why the Park and Recreation Commission is pursuing a public bond referendum. LIQUOR STORE - This fund is tapped, so to speak, as the city recently purchased the Westbound site and is pursuing the construction of a new Northbound store. The funding for these activities still calls for a continued liquor store contribution to the general fund and toward our building payment plans. There are very limited additional liquor store dollars available for new projects. NSP - There is a limited life to this reserve. Revenues for this program end in 2008. Until that year the city has $100,000 per year available. The 1997 allocation has been designated for the Cass fields. In the past this money has been used for the purchase of the Oak Knoll land and field development, the purchase of the city hall land, and the purchase of the Cass land. SURFACE WATER MANAGEMENT- The City Council should refer to the general fund budget for an update on the status of this fund. In 1997, there is less than $50,000 available for projects. In 1998, there will be another estimated $100,000 available for programs and projects. In 1997, it is planned that about $82,000 will be spent on trunk SWM projects associated with the north Joplin Street frontage road. An additional expenditure is going to be needed on Ditch 28. Part of the SWM levy is going toward the repayment of about $2 million in expenditures for past projects. There are a significant amount of needs for SWM projects, but there are limited funds available and the city has to slow down in its SWM expenditures. CIP Memo Page 4 As previously noted, on March 31st the City Council needs to discuss a dependable recurring source of revenues for the city's share of street projects. This, in light of a potential levy restriction imposed upon cities by the state legislature, may be difficult and could require a change in the city's approach of how street projects are funded. Another item of major significance that needs to be discussed on 3/31 is the city's share of the 169 safety projects. We could have up to $100,000 of city expenses for the street lighting project. Our participation level for the fencing is unknown at this time and we can anticipate up to $300,000 being the city's share for the pedestrian overpass bridge in the summer of 1999. It appears that we can get our city participation for the street lighting project reduced if we request this from MnDOT and offer to do the maintenance on the street lighting that is installed. I will need Council direction on 3/31 to send a letter to MnDOT requesting additional MnDOT participation in the lighting program. If the city cannot use MSA funding for the city's share of these projects, then the identification of $300,000 for the pedestrian bridge will be a difficult issue to address. Other discussion items on 3/31 include the following: · Timing of the east Elk River utilities extension · Liquor store bond issue · Use of the old liquor store building · Update on the Country Crossing 4th petition · Update on the anticipated county petition for public improvements · Discussion on Highland Avenue project · Request to purchase an administration vehicle as identified in the budget by using equipment reserves · Discuss developing an old core village street/sidewalk reconstruction plan · Briefly discuss funding the implementation of the industrial development part of the city Strategic Plan I don't believe we will get everything accomplished at the 3/31 CIP meeting, but it would be nice to get a good start on reaffirming what projects are moving forward now and on discussing what new projects are desired by the Council along with the potential funding for the new projects.