Agenda Packets - 1984/02/27 - Laserfiche WebLink

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1983 LONG TERM FINANCIAL PLAN Page Seventeen LONG-TERM REVENUE PROGRAM The provision, in the City Charter, Section 7.05, Subdivision 4, for a Long -Term Revenue Program states: "This program shall consist of a tentative revenue policy which describes long-term plans for financing public services and capital improvements". This, of necessity, is a general statement, subject to change, about the types of financing that are favored for current public services and for Capital Improvements. Basic governmental services, as presented in annual operating budgets, should be financed entirely from current recurring annual revenues. These revenues include, but are not limited to, generai pruperty Lanes, 6icish3r""` `.Q."'!ira fees; permit 7 " . fees and licenses, and intergovernmental revenues. Annual expenditures for basic governmental services should not exceed current recurring annual revenues. The goal is to achieve a balanced budget by financing current expenditures with current revenues. The uncertain future of local government aid and other State shared taxes will cause a search for other sources of revenues to fund basic governmental services accounted for in the general fund. These may include user fees and service charges. At the same time a review should be conducted to determine areas of potential economization and possible reduction of services. These could include contracting for services or joint programs with other governmental units. The Water and Sewer Utilities current operations should be financed entirely from the fees of the users of the utilities. User fees should be established so as to provide for annual recurring operating expenses, depreciation expenses, debt retirement, and an allowance for emergencies. These practices will ensure that the users of these utilities pay their fair share for services received and will also help maintain the financial integrity of the Water Fund and the Sewer Fund. Several methods are available for the financing of capital improvements. The method which is best will vary with the type of improvement and other conditions which may exist at the time the project is undertaken. Traditional public improvement pro- jects which include, but are not limited to, water mains, sewer mains, storm sewers, paving of streets, curbs and gutters, should be financed by special assessments. These special assessments should be assessed entirely against benefitted properties. Capital improvements of the Water and Sewer Utilities should be financed from fees of the users of the utilities. These improve- ments could include, but are not limited to, water towers, wells, ' and filtration and treatment plants. Construction costs would be _ paid for by the issuance of revenue bonds. The bonds would be