Laserfiche WebLink
shopping list (funding approaches are dynamic and changing) but will impact its <br />priority. <br />Funding Sources <br />A number of funding sources are available or can be made available to municipalities. <br />Some have specific requirements or limits. Increasingly, creative financing approaches <br />are being undertaken which leverage private or public funds and/or engage <br />partnerships with private business of other government entities. Some investment and <br />debt funding sources for public capital investments include: <br />General Fund — general property tax dollars and fees make up the broad category <br />general funds. <br />Enterprise Funds — water and sewer utilities usually operate as an "enterprise" account <br />that collects more than is spent for services purchased. The extra funds are kept in a <br />separate account that is used for operation, maintenance and upgrades of the <br />supported system. A one-time initial installation charge is also collected from each <br />connection made to the sewer or water system. This charge is called a Sewer <br />Availability Charge (SAC) or water availability charge (WAC), and is usually used to <br />expand capabilities. <br />General Obligation Bonds — certificates of indebtedness paid for by a property tax <br />levy, backed by the property values of the city and authorized by the voters or by <br />statutory provision. <br />Revenue Bonds — bonds supported by the specific revenue stream of the specific <br />investment (i.e. fees collected for an ice arena). <br />Tax Increment Financing — this revenue source is the captured increased property <br />value resulting from the investment, which would not have occurred without the <br />public financial assistance. This revenue is specifically pledged to qualified <br />improvements for a specified period of time. <br />Debt financing is not mandatory and the income stream could be used to pay investors <br />or lenders on a periodic or annual basis. Tax increment bonds are generally backed by <br />the full 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 <br />limited number of practices that have been considered objectionable. Changing of tax <br />rates for commercial properties at the state level also has significant impact on <br />revenue projections. The City of Gem Lake currently does not currently have any tax <br />increment financing districts. <br />Special Assessment Bonds — revenues are derived from the specially benefited <br />property 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 <br />capital investments. <br />SEH13. implementation ( page 67 <br />