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St. Peter council approves $1.20 million municipal state aid advance for 2025 road reimbursements
Summary
The City Council approved a resolution requesting a $1,201,352 municipal state aid (MSA) advance to reimburse 2025 road projects and to exclude a 2026 bond principal payment from the current request.
The St. Peter City Council on Feb. 24 approved a resolution requesting a $1,201,352 municipal state aid (MSA) advance to reimburse recent and upcoming city street projects, and removed a previously included $360,000 2026 bond principal payment from the current request.
City staff member Jeff explained the MSA advance program and said the advance lets a city receive up to five years of its MSA allotment up front for eligible reconstruction and maintenance of MSA-designated streets. Jeff told the council the city’s MSA account showed a balance of $0 as of Feb. 17 and detailed project reimbursements the city intends to seek, including $340,914 for the Old Minnesota Avenue leg of the St. Julien/Old Minnesota roundabout and roughly $217,000 for the St. Julien leg. He also said the Safe Routes to School contract did not begin in 2024 and that those expenses are expected in 2025, and that the 360 First Avenue (Magner Parkway) project was the only 2024 work that had been finaled and reimbursed with the prior advance.
Jeff recommended striking the 2026 bond principal from the current resolution after identifying a MnDOT accounting mix-up; with that revision the total advance requested was $1,201,352. The council moved to approve the revised resolution and carried it by roll call vote.
The action will allow the city to request state reimbursement now and have the state account for the advance against future annual MSA allotments. Jeff noted the advance is a standard cash-management tool for cities that expect near-term MSA expenditures to exceed their on-hand MSA balance.
Votes at a glance: The resolution to request a $1,201,352 MSA advance, with the 2026 bond principal removed, passed on a roll call vote with five ayes and no recorded no votes. The motion and second were not identified by name in the transcript.
Why it matters: The MSA program is the state-designated funding stream for collector streets; advancing funds lets St. Peter pay project invoices now and be reimbursed from future state allotments, which affects the timing of cash flows for street reconstruction and turn-lane work in town.
What remains: Staff will submit the advance request to state aid finance and later seek reimbursement for the identified project expenses when invoices are finaled.
