2-11-76 Meeting Attachment - Laserfiche WebLink

Home Browse Search

OFFICE OF STATE AID t'lEMO^.ANDUM N0. 76-1 January 19, 1976 TO : Hunicipal Engineers Distribution: 43 FROM : OFFICE OF STATE AID SUBJECT: Unencumbered Construction Fund Balance The Municipal Screening Committee directed that we review the res- olution on Unencumbered State Laid Construction Funds and inform the municipalities of the written justification which will be required in the future. The resolution states that ", . . . the _amount of the unencumbered construction fund balance as of Jun e_30�of cu the rr_ent year, not in- cludina the current Yyear�construction~ apportionment shall be deducted _�__ -_ from the Construction Needs _of_ _ _ eEch_ individual municipality". Th_e cutoff_ date was changed from June 30 to September_.1 at_ the las_t__ Screening Committee meetinS____This dives you 20^months to encumber your construction funds before a needs_ deduction is made.w State "Lid was never intended to completely finance the State t.id systcnn, t:.ere- fore, it shouldn't always be necessary to save up to get projects going. The system is designed to improve the road systems statewide on an equitable basis. If one or several communities do not use their construction funds, they are in effect penaliwing the rest of the state. They continue to draw needs and apportionment which could have ,,one to other municipalities. The Committee thought that several factors were possibly not being conveyed to you or your City Councils. One is that the deduction cur- rently reduces your next year's apportionment by about 1`2,730 for every '100,000 needs deduction. This doesn't seem much initially, but when you consider that the uncompleted project will cost consid- erably more next year due to inflation, the deduction looks more sig- nificant. Add to that the benefit of the completed roadway to the community and the deduction seems bigger yet. It should be remem- bered that a completed roadway continues to draw resurfacing needs. clerk': exhi _1 1 . > 13 meeting 2-11-76 ;�� 'cti,4,:t• :