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DRAFT <br />2/95 <br />CIP FINANCES <br />MUNICIPAL STATE AID (MSA) <br />MSA Funds can only be used for street, drainage, and sidewalk projects on <br />MSA routes. These funds are usually usediin combination with City <br />assessments and/or the use of City Reserve funds. The annual allocation for <br />the City of Elk River is approximately $46Q,000 per year. These funds <br />increase as the MSA mileage in the City increases. Funding is also subject to <br />changes depending on State Legislative action. <br />Some improvement projects that have been partially funded with MSA <br />monies and which have taken place in the last ten years include: Tyler <br />Street, Proctor Avenue, Fillmore Street, Main Street/Highway 169, Main <br />Street/Orono Road and the bridge replacen1lent, 193rd Avenue/Highway 169 <br />signal, Orono Parkway, and School Street/~ackson Avenue and the signal at <br />this intersection. <br />In 1992, the City bonded for some large sca~e improvement projects (Main <br />Street/Highway 169, Orono Parkway, 193rd Avenue signal) and committed <br />• future MSA funds from 1994 through 1999~'or the repayment of these bonds. <br />This annual bond payment equals half of the MSA annual allocation. <br />Accordingly, the annual revenues that are Actually available to the City for <br />improvement projects for the next five years are approximately $230,000. <br />In 1994, the City advanced encumbered MJA funds for the School Street and <br />Jackson Avenue project. This project met MSA funding eligibility <br />requirements. By advance encumbering these funds, the State will reserve <br />the funds and allow us to draw out these monies in 1995, 1996, and 1997 for <br />this project. In reality, limited-City MSA fulnds were. needed for this project <br />as other funding sources (State turnback monies and project assessments) <br />paid for the majority of this project. Howevrer, by using this advance <br />encumbering technique, the City has more flexibility and can then use these <br />MSA monies for other Council priority street projects that may not meet all of <br />the MSA funding and design requirements. <br />Some of the 1995 monies listed below are scheduled to be spent on the School <br />Street and Jackson Avenue project. The balance of the 1995 monies and <br />most of the 1996 monies are scheduled to b2 spent on the Orono Parkway and <br />Joplin Street improvements associated with the Western Area Phase II <br />project. This project is scheduled for completion in 1995. The MSA monies <br />• will directly pay off some of the bonds that have already been issued for this <br />project. Finally, the 1997 monies are anticipated to be used in 1995 on the <br />Page 1 of 13 <br />