2009-08-26 Handouts @ Mtg. - Laserfiche WebLink

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Based on our review, funding related to the federal Transportation Enhancement grant is required to be spent on qualified activities, which may include sidewalks that were part of the project description submitted on the federal Transportation Enhancement fund application. The City of Centerville is required to provide $235,500 of its own funds for this project as well. As of December 2008, the City had not incurred any costs that would result in reimbursement of grant funds from the federal government. Public Works Buildinl!: The petitioners were concerned that money from the Water and Sewer Funds was used to help purchase the City's new public works building. We reviewed City Council meeting minutes; the City's audited annual financial reports for the years ended December 31, 2005 through 2008; and the management letters (required communications letters) issued by the City's independent auditors for each of the annual audits. The following items were noted. 1. City Council Resolution #007-027, adopted July 11,2007, authorized the purchase of the land and building at 2085 Cedar Street for a cost of $1,400,000, which the City Council determined to be in the best interest of the City. Funding was authorized as follows: $800,000 from the General Fund, of which $413,000 would be provided from the General Fund capital reserve; $200,000 from the Water Fund; and $400,000 from the Sewer Fund. Included in the City resolution was authorization for a short-term loan to the General Fund from the Sewer Fund in the amount of $400,000 to be repaid upon sale of the existing public works site. The loan is to be repaid on or about September 1, 2009, with interest at six percent from the date funds are transferred to the date repaid. 2. Staff operating out of the public works building include those maintaining streets, parks, water utilities, and sewer utilities. 3. The independent auditor's schedules of findings for the City of Centerville contained in the above-mentioned audited annual financial reports did not include any written comments related to transfers or sufficiency of unrestricted net assets of the Water Fund and Sewer Fund. 4. The independent auditor's management letters advise the City of the importance of completing water and sewer rate analyses to ensure sufficient revenue to cover operating costs. The cash and investment balances in the Water and Sewer Funds, after adjusting for cash advances, have increased each year from 2005 to 2007. Page 11 L