Management Report and Recommendations 12/31/1982

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City of Lino Lakes IIManagement Report, Page 38 Administrative Construction Charges The City incurs expenditures in the General Fund through use of Administrative time and effort in the completion of construction projects. Additionally, there are future expenditures related to the maintenance of related debt service accounts. It is appropriate for the City to charge an interfund administrative fee for these services during the construction phase of the project. A common basis for the fee is a percent of contract (either a flat percent or a sliding percent based on the size of the project). The City has charged certain of these fees in the past. There is not however, a policy statement on what percent is to be charged and /or the timing of such a IIcharge. We recommend that the City establish a policy through a resolution which will: • Establish the percent of such charges. • Establish the timing of such charges (annually or upon project completion). • Determine any restrictions on the use of such monies (or if such monies will be considered General operating revenue). The establishment of the preceding policy will aid the City in recovering the City's cost associated with construction projects. Enterprise Fund The Enterprise Fund of the City of Lino Lakes financial statements are presented in the 1982 Annual Financial Report in Statements 16 through 18. Presented below are condensed comparative operating statements. Contributed depre- ciation has not been included in these presentations.