Dayton Council approves early draw of state aid to fund South Dimenick Road work

Dayton City Council voted 5-0 Feb. 11 to request an advance of future Municipal State Aid allotments so the city can use state dollars now on repaving and related projects, including a mill-and-overlay planned on South Dimenick Road.

City staff explained the action does not obligate the city to spend the money immediately; it formally requests authority to draw down future allotments so the city can “encumber” funds as projects are ready. Staff said using MSA dollars first would free up local pavement-management funds for other projects and could improve the city’s position for additional funds from other jurisdictions that run surpluses. Staff noted the city has about $573,000 in additional MSA dollars available this year and that advancing funds will temporarily show the MSA account negative for a few years while the city draws on future allotments.

Council members asked whether the plan counts on out-year money and whether advancing funds would harm future allotments. Staff said the city can draw only the amount it requests now (that acts as a cap) and that a lower balance can actually increase future allotments because the statewide formula reduces allotments for communities that appear to have large balances. Staff emphasized this action is a funding-request step, and project encumbrances would occur later as individual projects move forward.

Councilmember motions to approve the request were made and seconded; the motion carried 5-0.

City staff said the immediate project for which the funds may be used is a mill-and-overlay, and they described prior work on South Dimenick — earlier full-depth reclamation in 2007–08 and partial work since — to explain the current need.

Council directed staff to proceed with the formal MSA-advance request and noted that any use of advanced funds would be limited to MSA-eligible roads.