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• City of Mounds View Staff Report Highway 10 Pedestrian Bridge-Appendices February 21, 1997 Page 7 project. On July 21, 1995, the City received a legal opinion from James O'Meara of Briggs and Morgan stating that TIF funds could be used for the pedestrian bridge. Using $185,000 from tax increment financing for the City's share of construction costs, design and inspection, would leave $495,775 in the Highway 10 Redevelopment category. No specific projects have been identified for the use of these funds, although it is expected that the Highway 10 Study now underway will include recommendations for projects. The Economic Development Commission passed a motion endorsing this project, by a vote of 3-1, on February 20, 1997 (See memorandum from Cathy Bennett in Appendix F.) 3. Interest Earnings The funds transferred in December 1995 to create the pedestrian bridge account have earned approximately $9,900 in interest since the account was created. FUNDING SOURCES INCLUDED IN CURRENT BRIDGE BUDGET I. 4. Special Projects Fund Current Source:Interest Earnings Original Source: Closeout of Improvement Bond Redemption Fund Code Reference: Section 203.08 This fund was created in 1985 with an original balance of approximately $853,500. The balance in this fund as of 1995 was $1,607,420, including a loan of$500,000 to the water utility operating fund for the meter replacement project. Therefore, the actual cash in the account is approximately$1.1 million. This fund may be used, in part, to: • make interest bearing loans to finance public improvements or to make interest-bearing loans to finance equipment purchases and/or capital improvement projects which have been included in the long-term financial plan • make permanent transfers for the purchase of equipment and/or to finance capital improvement projects,which have been included in the long-term financial plan Capital improvement projects are defined as"projects which are intended to acquire, construct, permanently modify or purchase assets of a long term character which are intended to continue to be held or used, such as land, buildings and machinery. The past practice has been to use the interest in this fund for capital projects, rather than the principal. Typical projects have been sealcoating of streets and the City Hall expansion. The fund does not have an ongoing source of income other than interest, and IIItherefore, if the principal is spent, money would need to be transferred into this fund from