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HomeMy WebLinkAbout1988-001 Council ResolutionA • • • CITY OF LINO LAKES RESOLUTION NO. 01 -- 88 RESOLUTION TO ESTABLISH THE CONNECTION AND AREA CHARGE FUND FOR THE CITY OF LINO LAKES, MINNESOTA WHEREAS, The City has established various area and connect- ion charges related to sewer and water availabil- ity, and WHEREAS, The revenues collected from such connection and area charges are integral to funding specified debt service which financed the available sewer and water facilities, including trunk facilities, and WHEREAS, Certain revenues collected from such connection and area charges may be available for further water and sewer improvements, including major repairs and the extension of services. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City hereby establishes the Connection and Area Charge Capital Project Fund to account for the various connection and area charges collected by the City. The Fund will: 1. Maintain separate revenue accounts as required to segregate collections based on commitments to specified debt service funds and other designations as approp- riate. 2. Record all direct expenditures and transfers as approved by the City Council from specific designated and undesignated balances. 3. Maintain separate designations of remaining balances based on commitments to specified debt service funds and other designations as appropriate. 4. Allocate interest revenue to each designated and un- designated balance of the Fund based on the average cash balances of the various designated and undesign- ated balances. In December of each year, amounts shall be transferred to various debt service funds to provide adequate funding for the subsequent year's debt service based on the following: Sebsequent year's debt service requirement Less anticipated balance and revenues available in debt service fund: Anticipated January 1 balance available (prior to to transfer) Anticipated assessment collections Anticipated interest revenue Anticipated other revenues Anticipated transfer of Enterprise Fund service fee Total anticipated revenues Debt service payments requiring connection and area charge funding (scheduled transfer) The City will estimate the required transfers from the Connection and Area Charge Fund by October 1 of each year (prior to completing the budget process for the ensuring year). If adequate amounts are not anticipated in the Connection and Area Charge Fund to meet the above transfer requirements, the City will consider alternate funding sources to fund debt service payments. As the City determines that remaining connection and area charges are no longer required to fund outstanding debt service, such amounts may be transferred as directed by the City Council for water and sewer system improvements and repairs. Adopted by the Lino Lakes City Council this eleventh day of January, 1988. 2z Benjami. G. Benson, Mayor . Anderson, Clerk- Treasurer