12-09-2024 Council Meeting Agenda Packet

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• Fund 401, Building and Facilities, accounts for the maintenance and construction of municipal buildings and facilities. The main revenue source, charges for services, is cell tower antenna and ambulance lease revenue. The interfund loan activity represents payback from the T.I.F District 1-11 Fund (418) for the Legacy at Woods Edge Development. The interfund loan activity allows for fund reserves to be used as one of the funding sources for the Public Works Facility. Bond proceeds are projected in 2026 for the remainder of the Public Works Facility funding. • Fund 402, Capital Equipment Replacement, accounts for the purchase of capital equipment (including vehicles) for governmental functions, primarily Public Safety and Public Services. The main source of revenue is property taxes. To meet pay- as-you-go capital outlay needs, the tax levy is estimated to increase 20% annually until a $1,500,000 levy is reached in 2029. The specific property tax levy for the fire water tenders funds the annual principal and interest on an interfund loan from the Sewer Fund. Finally, proceeds from the sale of capital assets is assumed at 10.00% 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 individually 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. • Fund 405, Park Dedication, 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 Otter Lake Road Extension in 2025, Public Works Facility in 2026, and West Side Relief Sewer in 2027. Current debt service payments are represented as transfers out to the respective debt service fund which make the principal and interest payments while future debt service is shown as debt service expenditures. Water utility base fees are transferred in from the Water Operating 11