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Capital Improvement Financing <br />Implementing capital improvements requires the utilization of sound, economical <br />financing methods. The City of Elk River has several financing mechanisms available, <br />ranging from cash reserves to special-purpose funds to borrowing through the issuance <br />of municipal bonds. Several funding sources may be used for a project. The following <br />funding sources are identified as potential financing mechanisms for the projects in the <br />CIP.. <br />Internal Sources: <br />Capital Reserve — this fund was established to help build reserves for the purchase of <br />the city's information technology hardware and software. <br />Equipment Replacement Fund — this fund was established to account for the <br />purchases of the city's vehicles and mobile equipment. Funding is provided through <br />departmental charges based on the amortization of their respective equipment. <br />FTCenter —this fund accounts for the operation and maintenance of the multipurpose <br />facility which is funded by user fees. <br />Government Buildings Reserve — this fund was established to provide funding for the <br />replacement and/or rehabilitation of city facilities. The major source of revenue is from <br />landfill expansion fees. <br />Liquor Fund — this fund accounts for the operations and maintenance of the city's two <br />off -sale municipal liquor stores. A portion of the profits provide funding for park <br />improvement projects. <br />Park Dedication — this fund accounts for park dedication fees from developers and <br />funds expenditures for park land acquisitions and park capital improvements. <br />Park Improvement — this fund was established to account for the replacement and <br />maintenance of park equipment and for the beautification of city parks. It is financed by <br />an annual transfer from the Liquor Fund. <br />Pavement Management — this fund accounts for franchise taxes collected on gas and <br />electric bills which the city uses to fund street projects. <br />Sewer Fund — this fund accounts for customer sewer service charges that are used to <br />finance the sewer system expenses and infrastructure improvements. <br />Special Assessments — the costs of the improvements are levied against those <br />properties that benefit from a particular improvement to finance such improvements. <br />Storm Water — this fund accounts for customer stormwater service charges that are <br />used to finance the stormwater system expenses. <br />