Laserfiche WebLink
November 24, 1986 <br />Page 6 <br />Chapter 28 of the City Code entitled "Special Projects Fund" <br />was adopted which dedicates the interest earnings of the Fund <br />to the financing of non enterprise fund capital items. The <br />principal of the Fund may not be drawn down which assures a <br />continuing source of financing for capital items. Interest <br />earnings have fluctuated from $50,000 - $75,000 annually <br />depending on the interest rates on investments the City is <br />allowed to purchase. These interest earning have become <br />extremely valuable to the City now that the Revenue Sharing <br />Program has expired and not been renewed. Now the Special <br />Projects Fund has become the sole source for financing of <br />capital items aside from the property tax levy. Capital <br />Projects Funds monies may be used for Park Improvements <br />however, they compete for a limited amount of dollars along <br />with other City Departments. <br />Monies received from developers for Park Dedication fees are <br />placed in the Park Dedication Fund and may only be used for <br />Park Improvements. Presently the Fund has a cash balance of <br />$39,000. Of that amount $13,000 has been committed to <br />construction of tennis courts at Groveland Park leaving a <br />balance of $26,000 available for future improvements. <br />FINANCING OPTIONS: PARK IMPROVEMENT FUND <br />Staff was also requested to consider establishing a Park <br />Improvement Fund, similar to the Special Projects Fund, and to <br />explore options to build up the Fund to a level that interest <br />earnings of approximately $50,000 annually would be <br />generated. At the present interest rates of 5.5% a fund of <br />$1,000,000 would generate $55,000 in interest earnings <br />annually. Taking into account interest earnings of 5.5% per <br />annum the Fund could be built up to a balance of $1,000,000 in <br />approximately 10 - 25 years depending upon the annual payment <br />made into the Fund. Please note the chart below. <br />ANNUAL PAYMENTS REQUIRED TO ACCUMULATE A FUND OF $1,000,000 <br />ASSUMING INTEREST EARNINGS OF 5.5% PER ANNUM. <br />Number of <br />Amount of <br />Property Tax Levy <br />Payments <br />Annual Payment <br />Needed for Payment <br />10 <br />$77,668 <br />1.35 Mills <br />15 <br />$44,626 <br />0.78 Mills <br />20 <br />$28,679 <br />0.50 Mills <br />25 <br />$19,549 <br />0.34 Mills <br />