City has $400K set aside for street projects

Wednesday, March 6, 2019

McCOOK, Neb. — The City of McCook has accumulated over $400,000 in state/federal dollars for street projects.

Councilman Gene Weedin pulled from the consent agenda item the annual certification form that confirms that the funds have been used according to the Federal Aid Transportation Fund Purchase-Sale agreement. At Monday night’s regular council meeting, he asked Kyle Potthoff, City of McCook Public Works Director, what the funds will be used for.

Some will be used for projects slated this summer, such as the larger Park Avenue project, Potthoff said, as well as for other smaller street projects. Per the agreement, cities who receive the funds are allowed to accrue the funds.

As allowed in the agreement, the City of McCook has chosen to accumulate these funds to be used on a bigger project in the future. The funds, as required by law, have been segregated. The total amount in the segregated account, including interest, is $434,778.64.

The Federal Aid Transportation Fund Purchase-Sale Agreement replaces federal funds allocated to first class cities to state dollars.

As part of the agreement, all first class cities in the state of Nebraska agree to receive .90 cents of state dollars for every $1 of federal dollars that would have been originally allocated. The goal was to reduce the time and ultimately the costs of road projects by eliminating some of the federal requirements that delay projects and have increased costs in the past. The City of McCook’s first payment was received in Spring 2016 in the amount of $137,515.82, the second in Spring 2018 at $143,508.90 and the third will be in the amount of $145,709.

After discussion, the council unanimously approved the annual certification form that confirms funds received by from the State of Nebraska Department of Roads, as part of the Federal Aid Transportation Fund Purchase-Sale Agreement, have been used according to the agreement.

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