2023-02-22 CC Packet - REVISED - Laserfiche WebLink

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building and maintenance, and other infrastructure ✓Health services ✓General government administration, staff, and administrative facilities ✓Environmental remediation ✓Provision of police, fire, and other public safety services (including purchase of fire trucks and police vehicles) Government services is the most flexible eligible use category under the SLFRF program, and funds are subject to streamlined reporting and compliance requirements. Page 11 https:Hhome.treasurygov/s/system/files/136/SLFRF-Final-Rule-Overview.pdf The city may not use SURF funds for debt service or replenishing financial reserves. With these requirements in mind, the options are use the funds to cover the cost of traditional government services, or for specifically identified qualifying expenditures in accordance with the Treasury Final Rule. To staff s knowledge, we do not have sufficient qualifying expenditures to exhaust all the allotted funds. While water and sewer capital projects do qualify, our downtown reconstruction project was essentially completed during 2020, which is before expenditures for these funds can be used. That leaves us the conundrum of where to apply these funds. The utility funds are traditional government services, but they are all well funded. The prohibition on debt service uses eliminates paying any bond issues off. We are then looking at the General Fund or Capital Projects funds. Applying the funds against General Fund will essentially only increase revenues for 2022. We already have a fund balance that exceeds the base amount and will be adding a lot for 2022 with the unbudgeted building permit revenues received for major construction projects on the east side of town. That doesn't seem to be the best place to use the funds. The capital projects funds we have are 402-Park Dedication, 409-Capital Replacement, and 452-Street Reconstruction. 402-Park Dedication doesn't qualify because there were no project expenditures during this past year. The only activity was collecting park dedication fees on the newly created parcels associated with development projects. The only capital replacement expenditure for 2022 was the ToolCat. Since the fund balance for that fund is expected to go negative when we purchase a new snow plow/dump truck, this would seem to be a good place for additional revenue. The 2022 Thin Overlay/City Hall Parking Lot project was completed despite bids coming in much higher than the engineer's estimate. We are projecting this fund to bounce around a zero balance over the foreseeable future. While we aren't sure street maintenance costs will be permanently higher, this fund could also use an injection of additional revenue.