comments

$7.1 million transferred in city funds

Beazer Homes owes a remaining balance of $752,893 for bypass project
By: Stephanie Dumm News Messenger Reporter
-A +A
To cover costs of the Ferrari Ranch interchange and Highway 65 Bypass sound wall, City Council voted Tuesday to transfer $7.1 million from one fund to another. The $7.1 million had been collected “to pay expenses associated with the Ferrari Ranch Road interchange and bypass sound wall construction,” according to Steve Ambrose, assistant director of the city’s development services. It will now be transferred from fund balance number 557 to an expense account. “The transfer from fund balance to an expense account is necessary to pay invoices for anticipated expenses related to the interchange and the sound walls for this fiscal year,” Ambrose wrote in the item’s staff report. Fund balance 557, which is called the Highway 65 Bypass Fund, is a separate fund according to Ambrose, who said in the budget is shown as the Capital Projects Fund. The city agreed to pay Caltrans $18.6 million for the interchange, according to Ambrose, and “an amount not to exceed $1.4 million for the sound wall.” Before voting Tuesday night, all five council members asked Ambrose questions. Councilman Kent Nakata wanted to know if the projected number the city would pay to Caltrans for the project each quarter “is going to be a solid number until construction is completed.” “For the interchange, we initially gave a deposit and then we will invoice (Caltrans) quarterly on construction costs,” Ambrose told the council. “We did a deposit in 2008 and just received the first progress billing for the interchange. The amount may vary as the project moves forward.” Councilwoman Linda Stackpoole wanted to know what the funding source for the sound wall is. “The sound wall is a portion of sound wall along two developments,” Ambrose said. “The agreement is that we require developers to fund sound wall cost. We’ve collected the majority of the funds.” Councilman Spencer Short asked about two CFD’s (community facilities district) listed as funding sources for the sound wall in relation to the bypass. “The two CFD’s for Lincoln Crossing are now available for projects within the area,” Ambrose said. The two CFD’s are listed as a funding source that have a combined total of $815,559. The city has entered into a development agreement with 3-D Development and the Sorrento Development, according to Ambrose. 3-D Development, which is done by Beazer Homes, still owes a remaining balance of $752,893. The estimated cost for the sound wall is $1.47 million. Joiner wanted to know what has been done by the city to collect the remaining $752,893. “We are currently working to schedule a meeting with Beazer to discuss the balance due,” Ambrose said on Wednesday.