CC WORKSESSION 09021997 - Laserfiche WebLink

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3�O Somewhat Favorable: Rapid Escalation of Stormwater Rates - Significantly increasing the stormwater rates (doubling or tripling) would not in itself accomplish the goal of rapidly increasing the stormwater fund balance to $500,000. If the City were toTriple the current rates, it would take 2 years to increase the fund balance by $300,000. Favorable: Transfer of fund balance reserves - The transfer of reserves could be made from the City's Revolving Fund. This provides immediate funding and financial support for any flood - related concerns and issues. However, the down side this transfer is that most of the funds in the City's Revolving Fund will be spent in the next year and a half. The current fund balance of $861,573 is designated as follows: 1) Park Improvements $ 25,000 2) Fire Truck $225,000 3) Budget/Levy Reserves $198,000 3) Underground Storage Tanks $ 46,000 4) Salt /Pole Building $ 30,000 5) 1998 Squad Car Funding $ 36,000 6) Street Lights (39' & County Road D) $46,00 0 $606,000 Non - Committed $255,573 A reduction of $250,000 in the revolving fund balance would eliminate any further funding for special projects until the fund balance can be built back up (this could take a number of years). Most favorable: Increase stormwater rates and a transfer from reserves:- By establishing a one year escalation of the stormwater rates (Tripling) the annual revenue would increase to $144,000 and would require a $150,000 transfer from the Revolving Fund to create a $500,000 fund balance. This would accomplish the objective of having a fund balance large enough to provide flooding assistance and leave enough monies in the Revolving Fund for other projects. The cost to St. Anthony homeowners would be $36.00 per year.