Memo - Capital Improvement Plan - Final
CITY OF HOPKINS
I FINANCE DEPARTMENT I
MEMORANDUM
From:
June 21, 2005
Mayor & City Council
Christine Harkess, Finance Director
Date:
To:
Subject: Capital Improvement Plan (CIP) Final Review
One change has been made to the CIP to reclassify the Excelsior Boulevard streetscape
improvement project from the MSA fund to the PIR fund as the majority of the project is
expected to be funded by local funds, Other than that change the document is substantially the
same document as was presented at the June 14th work session, We will review the document
one final time before presenting it at the July 5th council meeting,
Additional information provided verbally at the June 14th work session was options for MSA
funding to either advance our allocation or bond against those funds, Here again is that
information,
To access MSA funding in advance we have two options, They are:
I, Request advance funding on our MSA allocation, This is only available if the state has
available funds, The funds to advance a city come from current allocations that other
cities do not access, Unfortunately within the past few years a number of cities have
requested advance funding of their MSA allocation and in addition most cities are
requesting their current funding and leaving no "spare" funds available for the state to
advance. The state sets limits as to the total amount they may advance to cities in any
one year, In addition there are individual city limits as to the amount you can request in
advance which shall not exceed the city's total apportionment for the three years
following the year the advance is made, ~162.14 subd,6
2, Bond against future MSA allocations and pledge future MSA funding to pay the annual
principal and interest. The bond obligation shall be issued in amounts and on terms such
that the average annual amount of principal and interest due in all subsequent years shall
not exceed 50% of the amount ofthe last annual allotment preceding the bond issue, All
interest on the obligation shall be paid out of the city's normal maintenance account in
the municipal state-aid street fund. The principal is paid from the construction
allotment. ~ 162.18 subd.l