11-08-2023 Council Packet - Laserfiche WebLink

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Aforementioned, ten years of capital improvements are included in this CIP in order to identify if sufficient revenues are available to fund the ongoing replacement needs of the city into the future. Additional funding sources such as property taxes, grants, intergovernmental revenue, donations, or debt issuance will be needed to fund all of the identified projects in the next ten years. This is especially evident in the General Capital Improvements Fund and the Infrastructure Capital Project Fund. Other options are to delay projects or reduce the project budgets in these funds. Every effort has been made to draft the document as conservatively and realistically as possible while maintaining the integrity of the funds. The concept of the fund integrity includes accounting for project costs in the funds that have been designated for those costs to occur. Currently the City tracks its CIP in six different Capital Project Funds and one Enterprise Fund for storm water related projects. The Stormwater Fund is a new fund that will be implemented beginning 2024. The Capital Project Funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities and to track projects by each type, and are as follows: •General Capital Improvement Fund (400) •10% Charitable Gambling Fund (408) •Infrastructure Capital Project Fund (450) •Park Land Acquisition Fund (456) •Fire Equipment Fund (457) •Storm Water Enterprise Fund (603) •Water/Sewer Replacement Fund (604) Note: The Storm Water Fund 603 will be implemented as a standalone enterprise fund starting beginning of 2024, and will be reported in the Financial Statements as its own fund. The City decided to add this fund in order to identify and present separately all of the projects that relate to storm water management and infrastructure for ease of tracking and to closely monitor storm water infrastructure needs. Previously, all of the storm water CIP projects were expensed and recorded in the Infrastructure Capital Project Fund 450. Beginning with 2024 these projects are planned to be funded with revenues generated from a stormwater utility fee that would be added to the existing water and sewer utility bill. If a project that has been identified in the CIP was not completed, the unspent funds stay in the Fund. In addition, the City has several TIF Capital Project Funds. These TIF funds are currently budgeted on an annual basis per their respective TIF Plans and Development Agreements. General Capital Improvement Fund (400) Background: The General Capital Improvement Fund was established to fund capital improvements and acquisitions that are not accounted for in another Capital Project Fund. These improvements have been historically been building improvements, public works equipment, small fire equipment, and parks improvements. Typically, the expenditures in this fund have included the purchase of tangible personal property (equipment) or facilities used in the City operations. Sources of Funds: The General Capital Improvement Fund (400) receives its revenue from many sources including Local Government Aid (LGA) and transfers from the General Fund and other funds. Back in May, the State House 2