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b. <br />LONG-TERM FINANCIAL PLAN <br />Page Twenty -Six <br />Other capital improvements or capital facilties could be <br />considered a separate category. These include, but are not <br />limited to, park acquisition and development, municipal <br />buildings, storm drainage improvements, street <br />reconstruction and maintenance, equipment, vehicles and <br />office machines and equipment. These may be financed by <br />several methods and these methods are listed in order of <br />preference. <br />1) Grants -In -Aid - These include categorical grants from <br />County, State and Federal Agencies. <br />Federal Revenue Sharing monies should be used to finance <br />capital items. In the past these monies have been used <br />to purchase vehicles, maintenance and office equipment. <br />The City's present annual allottment is $56,000 (MSA). <br />Municipal State Aid (MSA) Road Funds have been and will <br />continue to be a source of financing construction and <br />reconstruction of the City's MSA Street System. <br />Park acquisition and development funds have in the past <br />been received from the State of Minnesota, Department of <br />Energy and Economic Development. Staff continues to <br />submit grant applications to this agency for funding of lip <br />park development projects. <br />2) Pay As You Go - This method uses current year's revenue <br />to finance capital items. This method is used to <br />finance recurring capital expenditures. It is used to <br />finance small tools, office equipment and some vehicles, <br />notably police squad cars. <br />3) Reserve Funds - Funds are set aside for a specific <br />project over a period of years and are subsequently used <br />to finance that project. The City presently uses this <br />method to finance several types of capital projects. <br />The Park Improvement Fund was established to account for <br />cash dedications received when land is subdivided. Such <br />monies are to be used for park acquisition and <br />development. As of December 31, 1983 the Fund has a <br />balance of $3,811. <br />The Storm Drainage Management Fund was established to <br />account for storm drainage management charges paid when <br />land is developed within the City. Monies obtained are <br />designated for the development of storm drainage <br />facilities. The balance available as of December 31, <br />1983 was $176,822. Is <br />