10.3. SR 11-07-2011 - Laserfiche WebLink

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• Peaking Plant payment Starting in 2010, the City received payment from GRE for hosting the peaking plant. This amount will be received over five years in the amount of $375,000 for a total of $1,875,000. This amount is coded to the GRE reserve fund but tracked separately. In 2011, the Council authorized the use of these funds for the Downtown parking lot acquisitions ($234,803 including closing costs). That leaves a remaining balance of $515,197 at the end of 2011. The Council asked for information as it relates to calling in the bonds on the Ice Arena before final maturity on 12/01 /2013. Besides the amount of principal and interest in the 2011 budget, the additional amount of principal is $370,000 plus accrued interest from December 1, 2011 until the next regularly scheduled payment on June 1, 2012. Paying off these bonds would eliminate the $111,650 transfer from the general fund to the Ice Arena in 2012. In addition, $31,920 in future interest expense would be saved. Trunk Utilities Fund (Exhibit C) The Ciry maintains a trunk utility fund made up of special assessment revenue from water and sewer improvement projects. The funds are to be spent on certain trunk water and sewer expansion/improvement projects. The funds may be used only for trunk connections and improvements in the area for which the assessments were collected, unless there is no further need in the existing area, then they can be used in another area. These funds would be used in lieu of having to issue bonds on future expansions and wait for the future revenue stream to repay the bonds. City Engineer Justin Femrite has incorporated the 171st Focused Area Study (Phase I) for your input and discussion. More detailed information on the 1715` Focused Area Study (Phase 1) will be discussed on November 14, 2011. Technology Replacements (Exhibit D) Technology replacements/software replacements for the most part are funded out of the IT operating budget and the Capital Outlay Reserve Fund. Over the next couple of years the major items to be discussed are a phone system replacement and virtual desktops. IT Manager Bob Pearson will be at the meeting to discuss these projects in detail. A few items are listed in 2012 that are carried over from 2011; which are laptops/computers for Council and time keeping software. Both of these items were to be considered if we got local government aid in 2011. Capital Outlay Reserve Fund This fund has no revenue stream other than interest income and donations. This fund has been used to purchase the LETG police software, IT virtualization equipment, and fund various capital equipment/software needs. The undesignated cash balance as of 09/30/2011 is $1,149,310. The 2012 budget includes a transfer of $122,100 to cover the capital outlay in the general fund for 2012. This is acceptable to our financial management plan since it is a one-time revenue source with one-time expenditures. After the $122,100 we have a number of technology/capital improvements that are anticipated over the next five years. This includes phone system replacement, virtualization refresh, and virtual desktop. This leaves a balance of approximately $406,710 to fund future equipment and fixture needs. N:\Public Bodies\City Council\Council RCA\Agenda Packet\11-07-2011\2012-2016CIPupdate110711[1].doc