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26 <br /> MEMORANDUM <br /> DATE: April 19, 2000 <br /> TO: Mike Mornson, City Manager <br /> FROM: Roger Larson, Finance Director <br /> ITEM: INTERNAL LOAN FOR 33P-D AVENUE STREET PROJECT <br /> I have reviewed the proposals that SEH & WSB presented for the 29`, Avenue and 33`d <br /> Avenue street projects. Based on the information provided by the two engineering <br /> firms, I performed an analysis to determine if the amount of MSA funds available was <br /> sufficient to fund all MSA projects proposed in 2000. <br /> The 2000 MSA projects and necessary funding include: <br /> 1) $236,000 - Silver Lake Bridge.Project <br /> 2) $ 40,000 - Signal Light - 37' & Highcrest <br /> 3) $950,000 - 29 h Avenue Street Project (MSA Bond) <br /> 4) $574,404 - 33`d Avenue Street Project <br /> (Includes an internal loan of$352,918) <br /> Upon completion of the analysis, I am confident that MSA funds available are adequate <br /> to fund and support the four projects listed above. The proposed internal loan to <br /> complete 33`d would be paid back over a period of three years from MSA Funds. <br /> Money is available from the Water Filtration fund to support this loan. In fairness to <br /> the lost interest earnings of these funds, I recommend an annual interest rate of 6% be <br /> attached to the loan. <br /> The financial impact of the internal loan and the $950,000 MSA Bond is as follows: <br /> 1) With the exception of a small amount in year 2003, all MSA <br /> Funds would be committed through 2003. <br /> 2) From 2004 - 2015 approximately 'h if the City's annual <br /> allocation of$230,000 is committed to repay the 29`t' <br /> Avenue Bonds. <br /> It should be noted that the 29' Avenue street project in its present format is not <br /> . contingent upon funding from the DNR. Present Stormwater Fees and annual MSA <br /> allocations would fund the $2.5 Million needed for the project. <br />