Agenda Packets - 1983/01/09 - Laserfiche WebLink

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Mayor & Council Director -Treasurer CITY ATTORNEY'S OPINION ON QUALIFYING USES OF RESIDUAL MSA CONSTRUCTION MONIES During 1982 Mounds View Drive, a street located within the Silver Lake Woods Improvment Project, was designated as a Municipal State Aid street, Subsequently MSA construction monies were received for acquisition and construction even though an assessment was levied against benefitted properties for the street. The receipt of MSA construction monies under such circumstances is allowable under alicable rasand sdusesof regulations fundshe Commission of Tnsportationgoverningthe In anticipation of the receipt of MSA monies for Mounds View Drive, a resolution was adopted establishing a Special Capital Projects Fund. When the MSA monies for Mounds View Drive were received they were deposited in this fund. In their management report dated December 31, 1982 (p. 28-29) our auditors recommended that prior to expending any monies of this fund a legal opinion regarding the qualifying uses of residual MSA construct- ion monies be obtained. I requested and have received such an opinion from the City Attorney. The City Attorney roojsshouldhis be creditedttocthe)Silverthat tLake WoodsMSA monies received for the project Imvrovements Project Fund. If, after all construction costs of the Project have been paid, there remains a. monies in the construction fund, those monies may be transferred to the Improvement Bonds of 1981 Bond Fund or said monies may be used to pay the cost in whole or in part of any other improvement instituted pursuant to Chapter 26.04. In discussing this matter with the City Attorney I was advised that the resolution adopting the Special Capital Projects Fund should be repealed and that the MSA monies in the Fundshouldbe transferred to 9 the the construction fund. As of November 30, , Special Capital Projects Fund was $436,238.29. The City Attorney further advised that once these monies were in the Project's construct - fund it ofart thosemonieslto the d be a DondeFunduse orotoemakeeatloantransfer the Bond Fund. As a consequence of these MSA monies being placed in the Project's construction fund, sufficient monies are available to transfer or loan to the Bond Fund should the Bond Fund experience any future cash flow mmendation is to leave the monies in problems. At this point my reco the construction fund so as to maintain maximum flexibility in future uses of those monies.