09-23-2024 CC Agenda Packet - Laserfiche WebLink

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G-2 6. The Senior Housing TIF Fund is a Special Revenue Fund that accounts for the Tax Increment Financing District No. 1-1 which was created to provide housing opportunities for seniors within the City. Its funding source is the property taxes on the captured value. The funds are restricted. 7. The Affordable Housing Fund is a Special Revenue Fund that provided purchase assistance to qualified home buyers. Funding was through grants from the Metropolitan Council, Hennepin, CDBG grants. The funds are restricted. 8. Capital project Funds are used to account for the financing of street projects, equipment replacement, public safety equipment, and facility rehabilitation or renovation. Revenue sources are provided mainly through transfers, special assessments, bond sales, and park dedication fees. The City’s goal is to maintain fund balances in the Municipal State Aid (MSA), the Improvement Equipment Outlay, the Community Investment, and the Pavement Management Plan (PMP) funds in an amount sufficient to support the ongoing capital expenditures planned in the CIP. Revenues not legally restricted will be assigned. 9. Fund balances in Debt Service Funds for future debt payments are restricted. 10. The Enterprise Funds are used to account for the City’s utility operations. This includes the following funds: Water, Sewer, Storm Water, Recycling, and Cable. The City’s long term goal is to have self-sustaining funds that do not require revenue from special assessment, issuance of debts or taxes. a) For Water, Sewer and Storm Water Funds, the City’s goal is to maintain 25% operating reserve and 25% capital reserve. b) The Recycling Fund’s goal is to maintain 25% operating reserve. c) The Cable Fund does not have a reserve and its purpose is to fund the Council Chamber improvements and operating expenses related to recording and streaming council meetings. c)d) The Golf Course Fund was created in 2023 to better track golf course activity and fund golf course projects in the future. The goal of the fund is currently to maintain a positive fund balance. 11. The Internal Service Funds are used to track revenue and expense shifts between departments. These include the following funds: Insurance, Fleet Management, Compensated Absences, and Information Technology. a) The Insurance Fund was created to account for total insurance revenue and expenses between all departments. The purpose of this fund is to allow for high deductible, which results in long term savings for the City. It has been determined that a fund balance of $300,000 is adequate for this purpose and fund balance in excess of $300,000 will be transferred to a fund designated by the City Council. b) The Fleet Management Fund is used to account for total expenses related to city vehicles. Each fund pays into this fund to cover their appropriate portions of expenses. c) The Compensated Absences Fund is used to account the liability owed to employees for compensated absences such as Sick, Vacation and Comp-Time. Fund balance is equal to the liability owed to employees at each year-end. 32