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General Fund — general property tax dollars and fees make up the broad category general <br />funds. <br />Enterprise Funds — water and sewer utilities usually operate as an "enterprise" account that <br />collects more than is spent for services purchased. The extra funds are kept in a separate <br />account that is used for operation, maintenance and upgrades of the supported system. A one- <br />time initial installation charge is also collected from each connection made to the sewer or <br />water system. This charge is called a Sewer Availability Charge (SAC) or water availability <br />charge (WAC), and is usually used to expand capabilities. <br />General Obligation Bonds — certificates of indebtedness paid for by a property tax levy, <br />backed by the property values of the city and authorized by the voters or by statutory <br />provision. <br />Revenue Bonds — bonds supported by the specific revenue stream of the specific investment <br />(i.e. fees collected for an ice arena). <br />Tax Increment Financing — this revenue source is the captured increased property value <br />resulting from the investment, which would not have occurred without the public financial <br />assistance. This revenue is specifically pledged to qualified improvements for a specified <br />period of time. <br />Debt financing is not mandatory and the income stream could be used to pay investors or <br />lenders on a periodic or annual basis. Tax increment bonds are generally backed by the full <br />faith and credit of the City and its taxpayers. <br />The legislature has continued to reduce the flexibility of this tool in response of a limited <br />number of practices that have been considered objectionable. Changing of tax rates for <br />commercial properties at the state level also has significant impact on revenue projections. <br />The City of Gem Lake currently does not currently have any tax increment financing districts. <br />Special Assessment Bonds — revenues are derived from the specially benefited property <br />served by the improvement. <br />Capital Improvement Reserve Funds — special assessments are required to be satisfied <br />when property ownership is transferred. The result is that advance payment of special <br />assessments in reserve produces additional earnings until they are applied to the bond <br />payment schedule. These funds can be used to restructure debt or to be used for capital <br />investments. <br />Utility bonds — a bond defrayed by the revenues derived from utility changes. <br />Transportation Equity Act (TEA21) Funds — In conjunction with the Twin Cities <br />Metropolitan Planning Organization transportation planning and programming, federal <br />matching funds are available for transportation and enhancement related projects. <br />Grants — A diminishing number of grants are available for specifically qualifying projects, <br />such as park and trail development, or utility improvements. <br />Loans — revenues to repay the loans would have to come from one of the sources listed <br />above, or from some specific future equity position in the project. The general policy of <br />SEH <br />13. implementation I page 68 <br />