1. Advances

2. Overview
Provides local agencies to make advances from future year’s allocations for the purpose of the ability of expediting construction.
Minnesota Statutes
County , Subd. 5, 6 and 7
Municipalities , Subd. 6
This process not only helps reduce the construction cash balance, but also allows municipalities and counties to fund projects that may have been delayed due to funding shortages.
This is an interest free option.
162.08, Subd. 5, 6 and
162.14, Subd

3. Guidelines County Municipality Statutory – None Statutory – None
Reference Minnesota Statutes , Subd. 5, 6 & 7
State Aid Rules – None
Reference State Aid Rules Subp. 5 & 8 thru 9
State Aid Guidelines
Advance is limited to counties last “construction” allotment.
Advance amount will be reduced by any similar outstanding obligations and/or bond principal payments due.
Municipality
Statutory – None
Reference Minnesota Statutes , Subd. 6
State Aid Rules – None
Reference State Aid Rules Subp. 10 & 10b
State Aid Guidelines
Advance is limited to five times the municipalities’ last construction allotment or $4,000,000, whichever is less.
Advance amount will be reduced by any similar outstanding obligations and/or bond principal payments due.
County
Minnesota Statutes , Subd. 5, 6 & 7 -
State Aid Guidelines -
Municipality
Minnesota Statutes , Subd
State Aid Guidelines -

4. Advance requests
Check to see if State Aid Finance has received the advance
Current year spreadsheets
County
Municipality
Code GREEN – LOW
Construction cash balance at acceptable level to approve anticipated advances. Advances approved on first-come, first-serve basis while funds are available.
County -
Municipality -

5. Advance forms Resolutions and Request to Reserve Form:
The correct resolution must be used for each advance type
County
Municipality
Resolutions are good for only one calendar year
If a local agency needs to advance Bond Principal Due and projects, only one resolution is required with the total amount needed to advance for both of these combined.
An account balance must be zero and the money needs to be requested with a State Aid Payment Request before receiving an advance.
Request to Reserve Funds – guarantee funds will be held specifically for the local agency.
County -
Municipality -

6. Advance resolutions Resolution form:
Payments are processed in the order received by SAF.
The area on the resolution that lists the projects, bond principal, project finals, and other are for your reference only. This is for your purpose to calculate the amount needed to advance.
Advances are not project specific or limited to the projects listed on the resolution.
If you have a short payment on this resolution form that needs to be paid with this advance. Please notify by the project number to John Fox at

7. Advance limitations may be exceeded
If State Aid funds are used in lieu of federal funds for federal aid advance construction projects programmed by the Area Transportation Partnership in the State Transportation Improvement Plan.
Repayment is made when federal funds are converted.
If federal funds fail to be programmed, or the project (portion of it) is declared federally ineligible
Local agency is required to pay back the advance under a payment plan mutually agreed to between State Aid and the municipality.

8. Questions?
Amie Wunderlich