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<br />. <br /> <br />City ofCenterville <br />February 27, 2002 <br />Council Minutes <br /> <br />Mayor Swedberg said going forward he does not want to run into situations where the <br />City is having to take thousands of dollars out of the general fund to cover overages. <br /> <br />City Attorney Hoeft indicated that, from a legal standpoint, development contracts now <br />require security of 150% which should take care of this issue. He then noted that was not <br />done in the past. <br /> <br />Mayor Swedberg asked whether the City Engineer is made aware that a project is <br />reaching the estimated amount and, if so, does the City Engineer notify the City that the <br />budgeted amount may be exceeded. <br /> <br />Mr. Peterson indicated the assessment hearing is held after completion of the project so <br />the costs are known. He then indicated that if something is going over he would be made <br />aware and further noted that he builds in 10% for cost overages. <br /> <br />Mayor Swedberg noted that the deficit account overstates that the City has more money <br />than it really does. <br /> <br />Council Member Nelson indicated the bills have already been paid but the books do not <br />accurately reflect where the money is. She thcn commented when she first looked at the <br />books it appeared to her the City had more money than it does because reconciliations <br />need to be made. <br /> <br />Mayor Swedberg indicated he would prefer to resolve the deficit accounts through the <br />budget rather than by drawing down the general fund. <br /> <br />Council Member Travis asked whether the developments named as deficit accounts had <br />upsizing and, if so, whether the funds had been credited. He then asked how these <br />accounts get into the red. <br /> <br />Mr. Palzer indicated he was not sure if all the projects were credited from the water and <br />sewer funds. He then commented there were some projects that came in under estimates. <br /> <br />Mayor Swedberg indicated that, if records exist, it would be valid to transfer funds from <br />the water and sewer fund to balance out the deficit account. <br /> <br />Council Member Nelson indicated she had requested to find out whether or not a portion <br />ofthc public works building was funded through the sewer and water fund. She then <br />asked whether Staff was able to verify whether or not a transfer had been made. She <br />further commented that it would seem appropriate to justify the cost of the building with <br />the same formula used for salaries from the sewer and water fund. <br /> <br />Ms. Moore-Sykes indicated she would ask Ms. Bender to e-mail the information <br />concerning the public works facility to Council. <br /> <br />Page 14 of24 <br />