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FUNDING <br /> The funding for the repair project is to come from Municipal State Aid (MSA) funds <br /> received from the State on an annual basis. The City's 1989 construction allotment is <br /> $163,601.00 of which the City has drawn $8,354.00. It is expected that the 1990 <br /> allotment will be approximately the same as 1989. <br /> The City may use advance financing procedures allowed by the MSA rules to provide <br /> additional funding to accomplish the repair project. Three possibilities exist within the <br /> rules as follows: <br /> 1. Advance encumbrance. The City can, by resolution, request an advance not- <br /> to-exceed 40% of its last State Aid apportionment. This would limit the City <br /> to about $65,000 of advance encumbrance. <br /> r <br /> 2. The City can sell State Aid bonds with the amount and on terms such that the <br /> average annual principal and interest due in all subsequent calendar years on <br /> the bonds (including any similar obligations outstanding) shall not exceed 50% <br /> of the last annual construction allotment preceding the bond issue. Assuming <br /> that the City has no outstanding MSA bonds, approximately $83,000 of MSA <br /> bonds could be sold. <br /> 3. The City may also issue general obligation bonds to mature in not more than <br /> five (5) years from the date of issue. The principal amount, including any <br /> prior issue,-may not exceed the total amount of -the last construction allotment <br /> preceding the bond issue in any calendar year. <br /> The City also has the option of assessing a portion of the repair costs to properties along <br /> the affected roadways using an equitable assessment method. <br /> -8- <br />