3.4. SR 08-04-2008 - Laserfiche WebLink

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City of Elk River Trunk Utility Fund Policy The City maintains a Trunk Utility Fund (Fund) made up of special assessment revenue from water and sewer improvement projects. The money in the Fund is to be spent on certain trunk water and sewer expansion/improvement projects as defined in this policy and approved by the City Council. The use of this Fund will be dictated by the City Council. The City Council will determine when expansion of the water and sewer trunk facilities will be made within the urban service area and will determine and approve any future expansion of the urban service area. The City will levy, collect, and retain revenue from all special assessments for projects funded through the Fund. The City retains ownership of the funds in the Fund and has the right to change this policy at any time as it deems appropriate. Future assessment revenue deposited in the trunk utility fund from assessments currently levied is to be shared equally between the water and sewer trunk accounts. Future revenue fox assessments not yet levied will be split based on the proportionate share of levied water improvements and sewer improvements and be placed in the water trunk account and sewer trunk account accordingly. The Fund may be used only for trunk connections or improvements in the area for which the assessments were collected (i.e., funds may not be spent in the northeast area of the urban service district if no assessment revenue from that anginal assessment project was deposited in the Fund). Water trunk projects will be paid from the Fund only if funds exist in the trunk water account. Sewer trunk projects will be paid from the Fund only if funds exist in the trunk sewer account. Financing for eligible water and sewer expansion/improvements that will be special assessed maybe paid from the Fund in lieu of issuing bonds if the Council determines it is in the City's best interest to do so and all special assessments levied fox the project are credited to the Fund when received. Elk River Municipal Utilities may request funding fox eligible trunk water facilities not included as part of a special assessment project from the Fund. The request shall be made in writing to the City Administrator. The City Administrator shall forward all eligible requests to the City Council for consideration. The City's finance department will maintain an accounting of the fund including determining the balance available for water improvements, the balance available for sewer improvements, and the areas in which those funds must be spent. S:\Council\Lori\2008\trunk policy appxova108 04 08.doc