5.4. SR 02-24-2003Item # 5.4.
Howard R, Green Oompany
February 7, 2003
File: 230353-0325
The Honorable Mayor and City Council
City of Elk River
13065 Orono Parkway
Elk River, MN 55330
RE: RESOLUTION REQUESTING MUNICIPAL STATE AID ADVANCE
Dear Council Members:
City Administrator Pat Klaers, Finance Director Lcd Johnson, and I have recently reviewed the
numerous City construction projects involving Municipal State Aid funding. It is clear that finalizing of
the Western Area Phase 4 improvements and the East Elk River Improvement project will essentially
drain the City's Municipal State Aid funds for 2003. This leaves the TH10/VVaco Street signalization,
175th Avenue, and TH10/Main Street project with no Municipal State Aid funding available in 2003.
Therefore, we are recommending to the City Council that the attached resolution be adopted
requesting the advancement of $750,000 from the Municipal State Aid general fund.
The City has twice before requested these general fund advances from Municipal State Aid. The
rules allow the City to request these funds and have them advanced for specific projects at no cost to
the City. As you can see from the attached resolution, we are suggesting that the City will repay this
advance in three equal $250,000 installments over the pedod of 2004 through 2006. There is no
interest cost associated with this request.
If you have any questions regarding this resolution, I will be in attendance at your February 24, 2003
City Council meeting.
Sincerely,
Howard R. Green Company
TJM:sw
Enclosure
Cc: Lori Johnson, Finance Director
Ltr-O20703-Council
1326 Energy Park Drive · St. Paul, MN 55108 · 651/644-4389 fax 651/644-9446 toll free 888/368-4389
RESOLUTION 03-
A RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION REQUESTING A GENERAL FUND ADVANCE FROM THE MUNICIPAL
STATE AID SYSTEM
WHEREAS
the City of Elk River is planning to implement Municipal State Aid Street Projects in
2003 which will require State Aid funds in excess of those available in its State Aid
Construction Account, and
WHEREAS
said City is prepared to proceed with the construction of said projects through the
use of advance encumbrances from the general State Aid Construction Account to
supplement the available funds in their State Aid construction Account, and
WHEREAS
repayment of the fund so advanced will be made in accordance with the provisions of
Minnesota Statutes 162.14, Subdivision 6 and Minnesota Rules, Chapter 8820.
NOW, THEREFORE, BE IT RESOLVED that the Commissioner of Transportation be and is hereby
requested to approve this advance for financing approved Municipal State Aid Street Projects of the
City of Elk River in an amount up to $750,000 in accordance with Minnesota Rules 8820.1500,
Subparagraph 10b. I hereby authorize repayments from subsequent accruals to the Municipal
State Aid Street Construction Account of said City in accordance with the schedule herein indicated:
(initial one)
__Repayment from entire future year allocations until fully repaid.
X Repayment from future year allocations in amounts listed below until fully repaid
(maximum 3 year repayment).
$ 250,000 CY 2004
$ 250,000 CY 2005
$ 250,000 CY 2006
I HEREBY CERTIFY that the above is a true and correct copy o a resolution presented to
and adopted by the City of Elk River, County of Sherburne, State of Minnesota, at a duly authorized
City Council Meeting held in the City of Elk River, Minnesota on the 24th day of February, 2003, as
disclosed by the records of said City on file and of record in the office.
Sandra A. Peine, City Clerk
City of Elk River
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