10-28-2013 Council Work Session Packet

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Improvement Equipment Outlay Fund— Lon�Lake Fire Department(Table B-3): • Revenues decreased to $85,000 based on information from Ron Olson. • In 2013's CIP an annual increase of 3% was assumed for the General Fund Transfer. This was lowered to 1.5%. Community Investment Fund(Table B-4): • Revenue was decreased to account for 1°/o interest based on the fund balance at the end of the previous year. MSA Fund (Table B-SaZ • Expenses were broken out into separate categories. • Revenues were broken out to reflect the MSA Maintenance and MSA Construction contributions. Water Fund(Table B-6): • Expenses broken down to show debt service for Casco Pt Rd Reconstruction. • For CIP purposes only, depreciation ($90,000) was removed from annual operation and maintenance costs. Depreciation still needs to be accounted for when rate increases are considered. Sewer Fund(Table B-7): • Expenses broken down to show debt service for Casco Pt Rd Reconstruction. • For CIP purposes only, depreciation ($250,000) was removed from annual operation and maintenance costs. Depreciation still needs to be accounted for when rate increases are considered. Police Infrastructure Fund(Table B-10� • New fund created in 2013. • Created to fund the Police Garage Addition & Remodel shown in the Building CIP (Table A-2b). After analyzing the updated CIP, I have areas of concern including: • There are immediate local road needs, but there is no long-term funding source for annual street maintenance or street reconstruction. • The rate structure for the water system needs to be analyzed. There are many significant projects which have to be done within the next 5 yrs and there are not enough funds or projected revenue to cover these costs. • The Improvement/Equipment Outlay Fund is underfunded. Even if the $850,000 for the building improvements in 2014 was removed, the fund will go negative in 2019. 3