02-11-1976 Council Agenda - Laserfiche WebLink

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OFFICE OF STATE AID MEMORANDUM NO. 76-1 January 19, 1976 TO . Municipal Engineers FROM . OFFICE OF STATE AID SUBJECT: Unencumbered Construction Fund Balance Distribution: 43 The Municipal Screening Committee directed that we review the rest olution on Unencumbered State :-id 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 June 30 of the current year, not in- cluding the current year construction apportionment shall be deducted from the Construction Needs of each individual municipnlity".._The cutoff date was changed from June 30 to September 1 at the last_. Screening Committee meeting. This gives you 20 months to encumber _ your construction funds before a needs deduction is made. State Aid was never intended to completely finance the State Lid system, there- 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 penali :ing the rest of the state, They continue to draw needs and apportionment which could have gone 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 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. 012,