11-23-2015 Council Work Session Packet

Home Browse Search

• Municipal State Aid Fund This fund is used for funding improvements to the City's Municipal State Aid road system. Debt service associated with this fund is paid through the City's annual allotment from the State. • Pavement Management Fund This fund is used for the maintenance of Non Municipal State Aid roads. The funding source is through the sale of bonds. Debt service associated with this fund is paid through taxes. • Enterprise Funds — As part of owning and operating the water, sewer, and storm sewer utilities, the City charges fees for providing service to the end users. The City also pursues grant money for improvements when applicable, The City evaluates the rate structure for each of these utilities to ensure that the income generated is sufficient to pay both operating costs and needed improvements. 429 Improvement Bonds — The improvements identified in this report such as street reconstruction, watermain replacement, and sanitary sewer replacement may be funded by issuing bonds. State law allows the City to issue bonds for improvements and assess the properties that benefit from the project for a portion of the costs. The pay back period for the bonds varies but is typically 10 to 20 years. The revenue for debt payment of the bonds would be from special assessments and/or City taxes. • Special Assessments — Special assessments are an indirect form of taxation. They are a way for cities to charge certain properties for the cost of making a local improvement, or to collect certain charges that will benefit those properties. Special assessments represent the increase in a properties value as a result of the project. Permanent Improvement Revolving (PIR) Fund — This fund is for temporary funding of projects prior to the sale of bonds or the levy of Special Assessments. The source of funding for this fund is through Special Assessments, Interest, and the repayment of expenditures from permanent funding sources. 2