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(Draft ]anuary 2002) Key Financial Strategies <br /> For Elk River <br /> <br />Workshop #3 in the Key Financial Strategies planning process examined the <br />financial implications of future capital improvements for the City of Elk River. <br />The following pages contain project summaries for currently identified capital <br />improvements. The purpose of this workshop was to: <br /> <br />· Review and discuss proposed CIP projects. <br /> <br />· Consider funding options for each project. <br /> <br />· Identify funding gaps and other financial issues. <br /> <br />Finance Tools <br />The evaluation of capital improvements projects combines need and financial <br />feasibility. This summary does not attempt to assemble an overall finance plan <br />for capital improvements. This step will follow in the planning process. It is <br />important, however, to have a brief discussion of the finance tools available to <br />the City of Elk River for the financing of capital improvements. <br /> <br />Revenues <br />Property taxes. The City can levy property taxes to support almost every form of <br />capital improvement. Capital improvements will compete with services for <br />limited tax dollars. If levy limits are reinstated, it may be necessary to incur debt <br />to leW outside of limitations for capital projects. <br /> <br />Landfill surcharge. Revenues from the operation of the landfill provide a <br />significant financial asset to the City. Landfill revenues are currently paid into <br />the Library Maintenance, Street Improvement and Government Buildings <br />Reserve funds. The amount and duration of these revenues play a significant role <br />in capital improvements planning. <br /> <br />User fees. The City collects user fees for a variety of purposes. The primary <br />sources of user revenues include municipal utilities, ice arena, and municipal <br />liquor operations. <br /> <br />Assessments. Special assessments may be levied against benefited properties to <br />pay for all or a portion of the cost of public improvements. The infrastructure <br />needed to open land for development is generally 100% financed by assessments. <br />Assessments will play an important role in the rehabilitation of streets and <br />utilities. The rehabilitation of existing improvements cannot be fully supported <br />by assessments. Other sources of revenue will be needed for these projects. <br /> <br />Capital Charges. The City collects capital (connection) charges from the growth <br />of the utility system. This money is saved for future improvements. <br /> <br />Fund Balances <br />The City saves money for capital improvements in a variety of special revenue, <br />capital project and enterprise funds. These funds create important flexibility in <br /> <br />Capital Improvements <br /> <br />Page <br /> 42 <br /> <br /> <br />