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ity of <br /> <br />iver <br /> <br />FROM: <br />DATE: <br /> <br />MEMORANDUM <br /> <br />Mayor & City Council <br />Pat Klaers, City Ad~/trator <br />March 31, 1997 <br /> <br />SUBJECT: CIP <br /> <br />Earlier this week the Terry Maurer memo on the status of current projects <br />and the marked up 1996-2000 CIP was distributed. Additionally, with the <br />March 24th agenda packet a comprehensive "wish list" for projects and <br />programs was distributed in anticipation of this 3/31 CIP meeting. This <br />"wish list" material may be the best information to use as we begin to sort <br />out City Council priorities for 1997 and 1998. The situation with our CIP in <br />1997 is no different than what it has been in previous years, and in simple <br />terms, is that there are more wants and desires for projects than funds are <br />available. The harsh reality of this situation is that the City Council needs to <br />delay lower priority projects (if there is such a thing) until funding is <br />established. <br /> <br />At the 3/31 CIP meeting staff hopes to distribute some detailed financial <br />information regarding CIP funding. This information is not yet completed or <br />available for distribution at this time. What follows in this memo is a brief <br />overview of some of our more significant CIP funding sources. <br /> <br />A great deal of CIP work relates to street projects and the main source of <br />funding for street projects is the Municipal State Aid (MSA) fund and the <br />Capital Projects reserve. <br /> <br />MSA - Almost all of the 1997 monies and part of the 1998 allocation was used <br />in 1996 as a loan for the 1718t street project. After repaying part of this loan <br />and our bond payment from the 1992 projects (the last 1992 bond payment of <br />$185,000 comes from the 1999 MSA allocation), we have a balance of about <br />$24,000 available for 1997 projects. This is not sufficient to cover the 197th <br />signal, County Road I and Highway 10 intersection work, and any city <br />expenses for the County Road I project. Accordingly, we will have to borrow <br />from 1998 monies to do some 1997 projects. We need to limit our MSA <br />expenditures for a few years in order to decrease our dependency on loans <br />from future years. Once we get to the year 2000 and have our full annual <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />