Other Auditor Reports 12/31/2001

Home Search

Town Center Construction Fund (Continued) Current deficit to cover Plus: Accrued interest through 12/31/01 Repayment of interfund loan Less: Proceeds from sale of "Former Police Station Site" (3 acres © $82,500/acre) $ 1,959,886 165,000 130,634 (247,500) Equals Cost to be recovered in Town Center Project $ 2,008,020 "Hotel site" "Retail strip on north end of Rehbien parcel" Remaining Acres to sell 4.5 acres 3.0 acres Approximate price per acre needed (through 2001) Approximate price per foot needed (through 2001) 7.5 ====»› 7.5 $ 267,736 $ 6.15 We recommend that the City continue to closely monitor the status of the Town Center Fund and identify other revenue sources if and when it is determined they are needed. SAC Revolving The SAC Revolving Fund was established in 1990 to account for a refund from the MCES (formerly MWCC) of past SAC charges which were paid by residents that had not hooked up to the sewer system. A summary of financial activity of this fund is as follows: Prior Years 2001 Total Revenue SAC refund $ 368,816 $ - $ 368,816 Investment earnings 227,015 11,574 238,589 Total revenue 595,831 11,574 607,405 Expenditures: Refunds 236,174 7,179 243,353 Fund balance - December 31, 2001 364,052 The City is allowing current homeowners to request a refund with 4% interest. If refunds and claims are not submitted, the City will pay the full SAC charge from this fund at the time of hook-up. This policy will likely require a supplemental future revenue source as the current MCES SAC charges times the potential hookups exceeds the available balance. If the MCES SAC fees continue to increase at a rate that is faster than the investment earnings rate, other revenue sources will be needed in the future to fund the actual connections when they occur. (10)