6.2. SR 01-28-2002 - Laserfiche WebLink

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(Draft January 2002) Key Financial Strategies For Elk River improvements. Funding plans for each of these projects is needed to make most effective use of revenues and reserves. The City has created a Pavement Management Program to provide for the reconstruction of the municipal street system. Currently, the Program draws funding from the landfill surcharge, assessments to benefiting properties and general property taxes. Careful planning will be needed to minimize the impacts on property taxes. It is anticipated that utility reserves and annual revenues will be used to pay for the related costs of street reconstruction projects. Planning for sewer, water and electric system improvements must be coordinated with the Utilities Commission. The City needs to create a long-term plan for funding construction and maintenance of the storm sewer system. Some money has been set aside in the Storm Sewer Project Fund. The current situation does not provide an ongoing source of revenue or a means of borrowing. If a storm water utility is not acceptable, then the City has three alternatives: (1) establish one or more storm sewer improvement districts; (2) assess 20% or more of the improvement costs to benefited properties; or (3) reallocate other revenues and undertake on a pay-as-you-go basis. The City needs a long-term plan for funding the acquisition and development of the municipal park system. Monies from park dedication fees and the NSP/RDF Fund are available for this purpose. The City can borrow for this purpose upon obtaining voter approval to issue bonds or proceeding under M.S. Chapter 429 to issue improvement bonds. Future facility and infrastructure projects increase the potential for capital improvements to compete with the General Fund for limited property tax revenues. Careful planning will help the City meet capital and service needs while managing the tax impacts. General Fund The General Fund is the heart of City financial operations. The General Fund finances most non-utility public services. The General Fund produces the largest demand on property taxes. Planning for the General Fund has led to the following key financial strategies: Personnel and related costs are the largest source of General Fund expense. The addition of staff will be a key to future expenditures. It is anticipated that the City will add a public works employee or police officer every other year to maintain adequate service levels. In the near term, the City has budgeted for additional staffing in cable TV, information management and finance. Planning for these additions and their expense helps to manage the financial implications. Page 5