BC 1988 01 04 - Laserfiche WebLink

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26O The second item in question is the distribution of $569,665 in unallocated sales tax refunds. The total costs of all projects amounted to $46,069,306. Of this amount, $5,048,712 represents costs for engineering, legal, land, and other administrative expenses which would not be subject to sales tax. If we use general construction cost only as a basis for allocating sales tax, the distribution would be as follows: Total General Construction Cost - Plant - Interceptors Total 32,042,068 8~978,526 41,020,594 Percentage of Plant to Total Percentage of Interceptors to Total 78.12% 21.88% 100.00% County Share of Unallocated Sales Tax: Plant - 569,665 X 78.12% X 16.66% Interceptors 569,665 X 21.88% x 100% Total Due County 74,141 124~642 198,783 The City of Concord gave the County credit for $142,440 of sales tax refunds. The above distribution would further reduce the County's liability to the City by $56,343. The third item in question is the disposition of the fund balance which accumulated in the Rocky River Fund over the life of the projects. At 6/30/87, this balance amounted to $626,827. Since the County paid its share of expenditures as billed and the interest earnings resulted from cash from all participants, plus unallocated sales tax refunds, proceeds from grant antici- pation notes, and other loan proceeds, we feel that the County is entitled to share equally in the remaining fund balance. This would amount to $313,413 and thereby further reduce our liability to the City by this amount. As the City has charged the County for interest expense relating to the project, we should therefore share in interest income. The last item in question relates to interest expense of $346,452 of which the County was charged $57,719. We are in agreement that the County should pay its share of the interest expense relating to the grant anticipation notes issued by the City, which amounts to $51,542. However, it is our opinion that the remaining balance of $6,177, which relates to three promissory bank notes obtained by the City, would not be a legal expense in which the County could participate. In a letter dated '2/10/87 to James Lentz from Bernie Edwards the amount requested by the Mayor for settlement of the Rocky River Fund Project was $432,212.05. Per phone conversation with Cathy Combs on 12/21/87, she advised that the County receivable was only $413,098. The difference of $19,114 is an item sill pending E.P.A. resolution. Based on the above data it is our opinion that the final settlement would be as follows: Balance due per City as of 12/21/87 Less questioned audit discrepancies Less additional sales tax refunds Less distribution of fund balance Less bank note interest expense Balance due from City of Concord $413,098 81,535 56,343 313,413 6~177 $ 44,370 The Clerk to the Board of Commissioners presented certified copies of resolutions which had been received from The Cabarrus County Board of Education and The Kannapolis City Board of Education. Thereupon Commissioner Hamby introduced the following order authorizing bonds which was read: