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City of Lino Lakes <br />Management Report, Page 25 <br />The City should maintain detail records of cost allocations to allow for segregation 1 <br />of City versus CDBG reimbursable expenditures. We recommend that the City prepare /develop <br />these detail records to maintain such accounting detail. Financing for the City Hall <br />upgrading, at an estimated cost of $65,079, is budgeted to be provided from the <br />following sources: <br />1981 Certificates of Indebtedness <br />1984 Budget Allocation <br />Transfers from other funds <br />Total original financing program <br />$ 13,000 <br />35,000 <br />17,079 <br />65,079 <br />Additional Provided: <br />1984 Revenue Sharing 30,000 <br />Total Financing Provided $ 95,079 <br />Estimated Costs $ 65,079 <br />1 <br />1 <br />1 <br />1 <br />1 <br />The designation of Revenue Sharing monies for construction projects may cause the 1 <br />City additional costs in the expending of Revenue Sharing allotment. The various <br />federal requirements (primarily Davis Bacon Act regulations) may increase the construc- <br />tion costs incurred. These regulations may cause undue administrative complexity in 1 <br />monitoring compliance and in some cases it actually may increase the contract cost. <br />Expending entitlements on contracts and /or numerous smaller expenditures, increases the 1 <br />required level of documentation to comply with Revenue Sharing rules. An alternative <br />approach is to use the entitlements on a major qualifying expenditure such as the fire <br />protection contract. Providing supplemental financing for a service previously financed II <br />in the General Fund allows the City to budget a somewhat corresponding transfer out <br />(from the General Fund to a Capital Project Fund) to finance other improvements. The <br />added benefit is that burdensome administrative procedures are avoided because the <br />Revenue Sharing entitlements are technically used for fire protection. We recommend <br />that the City consider alternate methods of expending Revenue Sharing entitlements. <br />1 <br />We recommend that the City review this project to insure that costs are properly <br />allocated and that financing is sufficient to fund all construction expenditures on a <br />timely basis. <br />1 <br />1 <br />1 <br />1 <br />1 <br />