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<br /> <br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br /> <br />Meeting Date: June 14, 2016 <br /> <br /> <br />Resolution- Requesting an Advance from the Municipal State Aid Street Fund for the Calendar Year <br />2017. <br /> <br /> <br />OVERVIEW: <br /> <br />In front of you this evening is a resolution requesting an advance from the Municipal State Aid (MSA) <br />Street Fund for the calendar year 2017. <br /> <br />The process for requesting an MSA advance requires a council resolution. The City Engineer will send <br />a cover letter requesting the advance along with the attached resolution to State Aid. Advance requests <br />are reviewed on a first-come-first -serve basis. Distribution of the funds will not be made until 2017. <br />The State Aid finance department will let the City know if the advance is approved. Cities are allowed <br />to request advancement for Municipal State Aid projects costs (or for costs previously incurred). <br /> <br />The current request equals four times the City’s annual State Aid construction allotment. The City was <br />recently allocated $263,251 in 2016 for Municipal State Aid projects. Based on the City’s current <br />allotment, the requested advance totals $1,053,004. If the advance is approved from State Aid, annual <br />State Aid reimbursements would not be made during 2018 -2021 as that period of time would have <br />been paid up-front. This advance will maintain the maximum advance of construction reimbursements <br />allowed. <br /> <br />Please note that the State account does not bear interest and the State prefers that Cities drawn down <br />their account in connection with MSA expenditures. The advantage for the City is it can invest the <br />proceeds and replenish the funds used for MSA construction expenditures incurred. City Staff is <br />recommending that the Council pass the resolution. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />37