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<br /> <br /> STAFF REPORT <br /> <br /> <br />TO: Mayor Keis and Members of the City Council <br /> <br />FROM: Brenda Malinowski, Finance Director <br /> Chris Heineman, City Administrator <br /> Bill Dircks, Public Works Director <br /> <br />DATE: May 8, 2020 <br /> <br />RE: Consider passing a resolution requesting an advance from the Municipal State Aid <br />(MSA) Street Fund <br /> <br /> <br />ACTION TO BE CONSIDERED <br />Consideration of a resolution requesting an advance from the Municipal State Aid (MSA) Street Fund. <br /> <br />BACKGROUND <br />The City of Little Canada receives an annual municipal state aid construction allotment of approximately <br />$403,000 for our MSA street system. Only some streets in the City that have an MSA designation. The <br />annual allotments accrue in the municipal state aid fund and payments from the fund are made to the <br />City when an eligible state aid project is constructed. <br /> <br />The City’s current MSA balance is as follows: <br /> Description Amount <br />Balance as of 12/31/2019 $156,726,.41 <br />2019 Allotment 402,716.00 <br />Encumbrances for prior projects (31,914.59) <br />Balance $527,527.82 <br /> <br />Greenbrier Street is in the MSA street system. The anticipated cost for this project, based on the bid <br />amount is $1,709,159. Assessments for this project are estimated to total $415,000. <br /> <br />Cities are allowed to request advances from the construction allotment up to five times the <br />municipalities’ last construction allotment, if the municipal state aid fund has sufficient reserves. The <br />municipal state aid fund contains the combined fund reserves of all the MSA municipalities. The <br />advances are issued on a first-come-first-serve basis. <br /> <br />While up to five times the current allotment may be requested, staff is recommending that the City <br />Council authorize staff to request an advance from the Municipal State Aid Street Construction Account <br />in the amount of $403,000.00 which is the approximate allotment for one-year. This advance from the <br />MSA Construction Account will serve as a 0% loan and would be reimbursed from future year <br />allocations until fully repaid. <br /> <br />RECOMMENDED ACTION <br />Staff recommends approval of the resolution requesting an advance from the Municipal State Aid <br />(MSA) Street Fund. <br />