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SPECIAL REVENUE FUNDS <br />The special revenue fund budgets are adopted <br />for are the Park Fund, The Drug Forfeiture Fund, <br />and TIF Housing Fund. With the 2025 budget <br />process, budgets also to be adopted includes <br />the Lurton Park Fund and the Carman Bay LID <br />Fund. Special revenue funds by definition have <br />a primary source of revenue that is dedicated <br />for a specific purpose. In the Park Fund, the <br />primary revenue source is park dedication fees <br />collected from developers and the tax levy. By <br />state law, park dedication fees must be used for <br />parkland acquisition and development. The <br />Drug Forfeiture Fund receives its primary <br />funding from the Police Department’s drug and <br />alcohol enforcement activities. The funds must <br />be used for drug and alcohol related activities. <br />The Lurton Park Fund is in relation to the Lurton <br />Dog Park. Revenue stream comes from the dog <br />park passes sold and the expenditure is used for <br />capital projects and improvements to the park <br />along with certain expenditures. The TIF Fund is <br />used to account for revenues related to the <br />Orono Woods Senior Housing Development. <br />The Carman Bay LID Fund is a passthrough fund <br />for the certified amount for the lake <br />improvement district. <br />DEBT SERVICE FUNDS <br />Debt Service Levies. The 2024 levy for debt <br />service is $820,000. This levy is used to pay the <br />debt service on the City’s outstanding bonds. <br />The current outstanding bonds are the 2014A <br />and 2021A bonds. <br />ENTERPRISE FUNDS <br />The Water, Sewer, Stormwater, Recycling, Golf <br />Course, and Cable Funds are designed to <br />account for the business type activities of the <br />City. These funds do not receive any property <br />tax revenue. The goal for the Enterprise funds <br />is to be fully funded by rates without depending <br />on special assessments for infrastructure <br />improvements or for years of operating loss. <br />On the revenue side of the budget, the utility <br />rates are approved annually as part of the fee <br />schedule. The utility rates are increasing by the <br />following percentage: Water 2%; Sewer 2%, <br />Stormwater 1%, and Recycling by 4%. <br />Additionally, based on the area (North, South, <br />Wayzata, or Long Lake), the sewer and water <br />will be charged accordingly. The utility rates are <br />included as part of the 2025 fee schedule and <br />budget. Cable fund revenue is generated by <br />franchise fees. Golf Course revenue is <br />generated by the fees and service charges from <br />users. <br />Water Fund. The water expenditure budget <br />overall is increasing by $29,400 (2.1%). The <br />biggest increase is in Personal Service for wages <br />and in Professional Service for IT and fleet <br />service. The operating budget for 2025 will have <br />a gain of $443,100. The overall change in fund <br />balance is anticipated to be $120,887 after <br />capital expenditures. <br />Projects identified in the CIP for 2025 include: <br />water system work that is aligned with road <br />projects ($900), watermain replacement project <br />at Kelly Ave ($200,000), and Navarre Water <br />Plant control upgrade ($110,000). <br />Sewer Fund. In past years, the sewer fund has <br />mostly operated at a loss. Non-operating <br />revenues, however, have consistently offset the <br />operating losses. This has resulted in a positive <br />operating cash flow for the fund. <br />The single largest expense for the sewer fund is <br />the Metropolitan Council Environmental <br />Services disposal charges, making up 33% of the <br />Sewer Fund operating budget. <br />The operating expenditure budget is increasing <br />by $26,260 (1.2%). The majority of this increase <br />is for wages and benefits and depreciation <br />expenditure. The total overall expenditure <br />budget is decreasing by $563,040 (-19.23%) due <br />to the decrease in operating transfers. <br />Page 3 of 113 151