6.2. SR 01-28-2002 - Laserfiche WebLink

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(Draft January 2002) Key Financial Strategies For Elk River 10.9 10.9.1 10.9.2 11.1 11.2 11.3 11.4 11.5 fiscal years and options for financing the improvements. Financial projections for the storm water management system shall be updated annually. The City will establish and maintain a program for the maintenance of the municipal street system. The initial sealcoating in new subdivisions will be financed with monies collected for this purpose at the time of original development. Other sealcoating and other maintenance activities will be financed through the General Fund. The City will prepare an on-going plan for the reconstruction of al/city streets. The City will provide a sustainable source of funding for the street reconstruction program. The street reconstruction expenses will be assessed to adjacent or otherwise benefiting properties to the maximum degree possible. The City will establish a permanent improvement revolving fund under Minnesota Statutes, Section 429.091 dedicated to the street reconstruction program. The use of a permanent improvement revolving fund allows the accumulation and protection of reserves, creates flexibility in the use of assessment revenues and authorizes debt for this purpose. The City will annually prepare cash flow projections for street reconstruction projects to ensure adequate and ongoing funding. It is not in the best interests of the City to finance capital investment on a cash only basis. Saving the money needed to undertake large capital projects may prevent the City from providing needed improvements in a timdy manner and/or create unacceptable demands on revenues. A cash-only approach places the entire financial burden on residents that precede the project. Persons that follow the improvement and receive its benefit do not pay. The City will maintain operating reserves at sufficient levels to prevent the need for short-term borrowing in anticipation of the receipt of revenues, grants, or other funds. Temporary financing will be used only when, in the judgment of the City Council, short-term debt serves the best interests of the City. Factors that favor the use of temporary debt include potential for large variations in project expenses, potential for future lower interest rates, ability to reduce long-term debt, and the ability to better manage taxes and other revenues. All bond issues and other obligations shall be repaid before the end of the useful life of the financed asset. The City will strive to repay all debt within the shortest practical period of time. Debt should not be amortized over more than 20 years. At least 11. Debt Page 21