Title
RESOLUTION AUTHORIZING A REQUEST TO MNDOT TO PROVIDE ADVANCE FUNDING AND AUTHORIZING PAYMENTS FROM SUBSEQUENT ACCRUALS TO THE CITY’S MUNICIPAL STATE AID CONSTRUCTION ACCOUNT FOR VARIOUS CITY PROJECTS IN THE AMOUNT OF $1,958,397.
Body
CITY PROPOSAL:
The city council finds as follows:
1) The municipality of Duluth implemented municipal state aid street projects in 2018 and 2019 which required state aid funds in excess of those available in its state aid construction account; and
2) Said municipality has proceeded with the construction of 2018 projects and is prepared to proceed with the 2019 projects with local and state aid funds and proposes to complete said projects through the use of an advance from the municipal state aid street fund to supplement the available funds in its state aid construction account; and
3) The advance is based upon the following determination of estimated expenditures:
|
Account balance as of 10/31/2018 |
$1,257,209 |
|
Plus: 2019 estimated construction allocation |
$3,927,736 |
|
Less estimated disbursements: |
|
Project #118-171-006 (Superior St. Reconstruction) |
$5,700,000 |
|
|
Project #118-060-012 (Skyline Parkway Walls) |
$58,000 |
|
|
Project #118-185-006 (Congdon Blvd.) |
$80,000 |
|
|
Project #118-134-017 (9th St./8th St.) |
$300,000 |
|
|
Project #118-178-006 (Decker Road) |
$505,342 |
|
|
Project #118-134-018 (Woodland/8th St. Signals) |
$500,000 |
|
|
Total estimated disbursements |
$7,143,342 |
|
Advance amount (amount in excess of account balance) |
($1,958,397) |
4) Repayment of the funds so advanced will be made in accordance with the provisions of Minnesota Statutes 162.14, subd. 6, and Minnesota Rules, Chapter 8830.1500, subp. 10b; and
5) The municipality acknowledges that advance funds are released on a first-come, first-serve basis, and that this resolution does not guarantee the availability of funds.
RESOLVED, that the commissioner of transportation be and is hereby requested to approve this advance for financing approved municipal state aid projects of the municipality of Duluth in an amount up to $1,958,397. The city of Duluth hereby authorizes payments from subsequent accruals to the municipal state aid construction account of the city of Duluth in accordance with the schedule herein indicated:
Repayment from entire future year allocation until fully repaid:
$1,958,397 paid from year 2020.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the proper city officials to request an advance from the city’s 2020 municipal state aid street funds. The city has already paid the contractors for most of the 2018 project costs and will soon acquire expenses on the 2019 projects. This request, if approved, allows the state to reimburse the city now, instead of after the city’s 2020 apportionment is available.