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Highway building project over budget CROW WING COUNTY Senior Reporter While construction costs will not be known until bids are opened in July, the Crow Wing County highway department construction is expected to be about $1.7 million more than originally planned.
Roy Luukkonen, county auditor, Duane Blanck, county highway engineer, and Peter Herlofsky Jr., county administrator, all met to review funding options.
On Tuesday, Blanck said there is a significant discrepancy between the master plan and developed plans for the project. Blanck said they do not have an explanation for the $1.7 million shortfall.
The county's building project budget was for $3.9 million. The plan called for offices for administration and engineering, maintenance storage, shops and parts, mezzanine storage, a stand-alone salt-sand storage space, and a stand-alone cold storage building. The county staff's estimated for the project is $5,344,010 with an architect's estimate at $6.1 million.
In a report to commissioners, Blanck recommended a combination of funding to make up the $1.7 million difference. The recommendation called for a combination of short-term borrowing from the county road and bridge fund, which then would reduce money available for area road improvements, the county building fund and county general fund reserves. The county building fund would have a $2 million balance, Blanck said.
Blanck said $1 million could come from the county building fund and general fund reserves with the balance paid from the road and bridge funds during a two- to three-year period.
Commissioner Dewey Tautges said as distasteful as using reserves are, it is more distasteful to use money from road funds. Tautges said bonding that adds to the tax rolls is not an option.
Commissioner Ed Larsen said the buildings people see on Laurel Street created the situation. The highway department was displaced by construction in downtown Brainerd and is moving to the Brainerd Lakes Regional Airport. Larsen said the board came up with the plan to move the highway department so they need to work with Blanck to create a solution.
With Commissioner Gary Walters absent from Tuesday's meeting, the board agreed to make a decision at its next session June 28.
RENEE RICHARDSON can be reached at renee.richardson@brainerddispatch.com or 855-5852.
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