Section 126.05. Costs not allowable.

  The following costs are not allowable for state participation:

(1)   Ineligible work. The cost of any work not included in the eligible portion of the project as approved by the department.

(2)   Cost of site. The cost of the site or easements or any estate or interest therein, and any cost associated with the acquisition thereof.

(3)   Rebates, refunds, tax exemptions. Any costs exceeding the actual net cost of materials or services are not eligible. A rebate or refund received from a firm or individual is not an allowable project cost. Where municipalities are exempt from the payment of sales taxes and excise taxes, such taxes are not an allowable cost.

(4)   Fee not related to construction. Any portion of a fee which covers services performed in staffing of the facility, training of personnel or other functions not directly related to the actual project.

(5)   Administrative costs. Costs such as provision of extra office space, telephone service and additional municipal personnel, including accountants, bookkeepers and clerks.

(6)   Legal services. Costs of legal services rendered in connection with ineligible parts of the projects, such as acquisition of site or easements.

(7)   Interest. Interest on bonds (including discounts below par) or any other form of indebtedness.

(8)   Damage awards. Damage awards arising out of the construction, equipping or operation of the project, whether such awards are determined by judicial procedure, arbitration, negotiation or otherwise.

(9)   Bonus payments. Bonus payments made by the applicant to the contractor for completing work in advance of a specified time.

(10)   Cost in excess of bid price. When a bid is rejected and later reinstated in the contract, its eligible cost may not exceed the original bid price.

(11)   Normal government costs. Costs incident to normal operating costs of government such as bond election costs and salaries and expenses of statutory government officials such as the mayor, city manager, city council members, etc.

(12)   Unnecessary or unreasonable costs. Any costs found by the department to be unreasonable or unnecessary to construction of the approved eligible project.

(13)   Completion prior to June 30, 1974. All costs of a project which was operational and on which the construction was essentially completed prior to the effective date of s. 281.56 , Stats., (June 29, 1974).

(14)   Operation and maintenance. The costs for operation or maintenance or replacement of equipment of facilities.

(15)   Costs incurred prior to august 1, 1966. Costs for any purpose paid prior to or work covered by construction contracts awarded prior to August 1, 1966, the date on which the first appropriation for state grants for construction of water pollution abatement projects under the State Water Resources Act was authorized.

History: Cr. Register, March, 1975, No. 231 , eff. 4-1-75; correction in (13) made under s. 13.93 (2m) (b) 7., Stats., Register, May, 2001, No. 545 .