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Storm Water Bond Fund - $138,933 The Storm Water Bond Fund was created to provide funding for the 29`" Avenue Street Improvement Project. In 2000, the City issued Storm -Sewer Revenue Bonds totaling $1,610,000. Revenues derived from user fees that are assessed to the quarterly utility bills are dedicated to provide funding for the annual principal and interest payments of the bond. Water Filtration & Purification Fund - $5,183,068 The Water Filtration & Purification Fund was established and is dedicated to provide safe drinking water to the residents. The monies in this fund were derived from a cash settlement that the City received from the United States Army and Honeywell as damages for contaminating the City's water supply. The original ten-year agreement which provided 90% funding for operation and maintenance of the carbon filtration plant has expired. The City is now 100% responsible for the operation and maintenance of the plant. The present financial plan in place is to use the annual interest earnings from the money to fund yearly operation and maintenance costs. Since, the Minnesota Pollution Control Agency has indicated that contaminates in the water could be in the system for as much as 100 years, long range financial plans and how these funds can best be used will be on-going over the next several years. Liquor Fund - $2,122,960 The City now owns and operates two off -sale stores (Market Place and Silver Lake Village). The Liquor Fund is an enterprise fund used to account for operations from the City's municipal liquor stores. Profits from operations are directed to capital equipment purchases and park improvements. The majority part of the fund balance is inventory and reserves to support the $940,000 Liquor Revenue Bonds issued in 1997. Annual debt payments run through 2012 and total $95,000 per year. Severance Fund - $127,085 The Severance Fund is a restricted use fund that provides funding for employee personal leave and comp -time severance pay upon their termination of employment with the City. The City's General Fund liability for 2010 totaled $691,339, the Water/Sewer's liability totaled $98,896 and the year-end liability for Liquor Operations totaled $49,244. Since it is unlikely that all employees would leave the City at the same time, the fund balance is deemed adequate to fund annual costs for the following year's potential liability/payments. 112