11-06-2023 Council Work Session Packet

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needs while the property tax levy increases at a gradual rate. Finally, proceeds from the sale of capital assets is assumed at 10% of the previous year’s capital outlay expenditures. •Fund 403, Office Equipment Replacement, accounts for the purchase of office equipment for governmental functions. The equipment is non-capital in nature (the City’s capital asset threshold for equipment is $10,000) and is not detailed in the Capital Improvement Program. The annual tax levy funds council technology stipends, computer replacements, other equipment (monitors, printers, scanners etc.), and network access devices. The 2026 transfer in represents funding for the ERP System project; $100,000 from the General Fund (101) and $150,000 from the Closed Bond Fund (301). •Fund 405, Dedicated Parks, is a statutorily required fund. State law requires park dedication fees to be placed in a special fund. The fund may be used only for acquisition or improvement or parks and recreational facilities. It may not be used for their ongoing operation or maintenance. Park Dedication Fees are outlined in the City Fee Schedule. Outside of the Main Street Trail primarily funded through grants in 2026, no other revenue or expenditures have been assumed. As park dedication fees from future developments are collected park plans will be developed. •Fund 406, Area & Unit Trunk, accounts for new sewer and water infrastructure. City Trunk Utility Connection Fees are outlined in the City Fee Schedule and are represented as special assessment revenue. Bond proceeds are projected for the Water Treatment Plant in 2024, Otter Lake Road Extension in 2025, Public Works Facility in 2026, and West Side Relief Sewer in 2027. The debt service payments are represented as transfers out to the respective debt service fund which will make the principal and interest payments. Water utility base fees are transferred in from the Water Operating Fund. Recent increases in the base fee are directly related to the Water Treatment Plant project to support the projected annual debt service payment. •Fund 418, T.I.F District 1-11 Legacy at Woods Edge Development, accounts for tax increment revenues collected within the district. The district was certified in 2005 and will decertify by 2031. The tax increment will pay off the interfund loan from the Building and Facilities Fund (401) for the Legacy at Woods Edge Development by 2026 and in the same fiscal year start paying off an interfund loan from the Sewer Fund (602) for the same development. The interfund loan from the Sewer Fund is projected to be paid off in 2028. •Fund 419, T.I.F District 1-12 Clearwater Creek Business Park, accounts for the tax increment revenues collected within the district. The district was certified in 38