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7A, Municipal State Aid Update
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7A, Municipal State Aid Update
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10/24/2024 10:02:00 AM
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4/26/2010 3:22:55 PM
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Municipal State Aid Update
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�.� EN HILLS <br />MEMORANDUM <br />DATE: April 26, 2010 <br />TO: Honorable Mayor and City Council Members <br />Sue Iverson, Acting City Administrator <br />FROM: Kristine Giga, Civil Engineer <br />SUBJECT: Municipal State Aid Update <br />Back�round/Discussion <br />On April 1 S, 2010, staff provided the City Council a memorandum summarizing a <br />meeting held with Mn/DOT State Aid staff on April 8, 2010. The City Council had <br />follow up questions regarding the payback to State Aid if a segment of North Snelling <br />Avenue is removed from the system. <br />Financial Implications <br />If a part or all of a state-aid route is revoked for which state-aid construction money has <br />been spent, the district state-aid engineer shall determine the remaining life of the proj ect <br />and compute the value of the items that were financed with state-aid money. The life of a <br />reconstruction project is 25 years, per Minnesota Rules 8820. In the case of North <br />Snelling Avenue, this length is 0.09 miles, and the remaining life is 6 years. <br />If the segment were removed from the system in 2010, there would be a one-time <br />payback of $10,545.56. If the segment were removed in a future year, the amount of the <br />payback will decrease, because the remaining life has decreased. The payback would be <br />subtracted from the next state-aid reimbursement requested by the City. The payback <br />would not be reduced from the next annual allocation. <br />Council Action Requested <br />Provide direction to staff on how to proceed with revisions to the City's Municipal State <br />Aid street designations. <br />City Council Meeting <br />C:�Documents and Settings\becky.brazys\Local Settings\Temporary Internet Files\Content.0utlook\2R69UP45\4-26- <br />l OMemo_M SA_Up date . do c <br />Page 1 of 1 <br />
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