2008 12-6 CCP - Laserfiche WebLink

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NEW BUSINESS- A The cost of constructing the building was financed by general obligation bonds sold in 2007. Due to estimates higher than anticipated and some cost overruns the bond proceeds and interest earnings on the invested proceeds were not enough to cover 100% of the project which is currently in a deficit position of $46,656.7.0 as of December 8, 2008. The attached "Heritage Hall-- Building Cost Reconciliation" details the. City of Gem Lake revenue sources and costs associated with the project. These total costs include what the City of Gem Lake owes White Bear Township ($2,184.13 for engineering) and reflects a refund due from the architects (2,932.82). The City Council has discussed how to fund the deficit in this project and the decision was made to include a transfer in 2008 from the General Fund for $20,000. These monies are available from the excess revenues generated over expenditures for the year and leave sufficient monies in the General Fund to continue to build the fund balance. included in the 2009 General Fund Budget was an additional $30,000 transfer from the General Fund to cover the remaining deficit and close the project fund. The Council is being asked to formally approve the following actions: Approve the Heritage Hall — Cost Reconciliation and authorize a payment to White. Bear Township in the amount of $2,184.13 for engineering cost reimbursement (included in the claims list for December 16, 2008); Approve and authorize a payment to White Bear Township in the amount of $5,740.81 for the water main oversizing to be paid from the Sewer Fund as a loan to a future water fund (included in the claims list for December 16, 2008); and Approve the transfer of $20,000 during 2008 from the General Fund to the City Hall Construction Fund to befunded from excess revenues over expenditures from 2008. 12