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Howarc R. Green CoTpany <br />CONSULTING ENGINEERS <br />March 3, 2000 <br />File: 806840J -0325 <br />Joel Hanson <br />City Administrator <br />City of Little Canada <br />515 Little Canada Road E <br />Little Canada, MN 55117 -1633 <br />RE: MUNICIPAL STATE AID LOAN <br />Dear Mr. Hanson: <br />As we have discussed, the Office of State Aid has a rule which allows Cities to borrow up to <br />$500,000 interest -free from the Municipal State Aid general fund. These loans are then repaid <br />with the City's construction fund allocation in subsequent years. Cities can only request a loan if <br />they have identified Municipal State Aid projects which will be let within approximately 90 days <br />of the loan request. The City of Little Canada certainly meets this requirement with Little <br />Canada Road, the right turn lane on Country Drive, and the signal on Rice Street, which are <br />anticipated to proceed in the spring of the year. <br />We have contacted the Office of State Aid, and 'as of this morning they were not quite sure how <br />much, if any, money is still available to make loans. There is a floor below which they cannot <br />allow the Municipal State Aid general fund to drop. They are still processing several requests <br />that have come in this year, therefore they are not sure how close to that floor they will be. The <br />gentleman we discussed the issue with suggested that we get a resolution in to save our place <br />in line if there are funds available. Attached for the City Council's consideration is a resolution <br />which requests an advance of $500,000 from the Municipal State Aid general fund. Once this <br />resolution is adopted by the City Council there is additional paperwork which we will prepare <br />and submit with the resolution, identifying the projects that the City of Little Canada anticipates <br />to be let within the next 90 days. <br />If you have any questions regarding this issue, please call. <br />Sincerely, <br />Howard R. Green Company <br />Terry J. Maurer, P.E. <br />TJM:mw <br />Attachments <br />O: \PROJ \806840J \0325 \Ltr 3-3-00 JHanson.doc <br />1326 Energy Park Drive • St. Paul, MN 5: <br />Page 11 <br />14 -9446 toll free 888/368 -4389 <br />