1994 CAFR - Laserfiche WebLink

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._.. `N(f"IRTF,l iiia',1\ Z Tots Tinzui r. The City has two development districts that were created in accordance with State Statute 472. Within these districts are five tax increment financing districts, three of which are for redevelopment and two for economic development. These tax increment financing districts capture increments from residential and commercial development that occur within the districts. During 1991, the City entered into private development agreements for an area referred to as the Wood Pond Projects which consists of three subdivisions. Contemplated in the development agreements was reimbursement to each of the developers for special trunk assessments incurred as part of construction assessments. The vehicle used for this reimbursement is called a tax increment revenue note. These notes provide for the payment of principal and interest (8 %) up to the lessor of the principal amount of the note or 97% of available tax increments. Payments from available increments are applied first to accrued interest and then to principal balances. If increments received through the year 1999 are not sufficient to pay off each developer, the note will be cancelled. Any excess increments received after 1999 will be retained by the City. The outstanding principal balance on these notes at December 31, 1994 was $546,098. This amount is not included in long -term debt because of the nature of these notes in that repayment is required only if sufficient tax increments are received. In a sense, these are really an obligation to assign a future and uncertain revenue source. Included in current liabilities for the year ended December 31, 1994 is $42,284, which represents the portion of increments collected in 1994 that were payable to the developers on February 1, 1995. These payments are recorded as capital outlay as they represent a payment for sewer trunk infrastructure contributed by the developers. As of December 31, 1994, the City had outstanding $5,390,000 of Tax Increment Financing Bonds which had been issued for the purpose of constructing pubic improvements and assisting developers with site improvements within the tax increment project areas. All bonds are payable solely from annual increments received. JFITNANCIiAIL SUMMARY General Fund The General Fund is the general operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund. General Fund revenues, including transfers, for 1994 totaled $2,946,353, an increase of $97,383 or 3.4 percent over the prior year. Expenditures, including transfers, totaled $2,998,382 an increase of $217,597 or 7.8 percent over 1993 levels. The fund balance in the General Fund is used to provide working capital for the fund until property tax and state aid settlements, which are received two times per year, are collected. The current Fund Balance and Excess Revenue policy states that unreserved - designated fund balance will be set at 50 percent of the next years operating budget; unreserved - undesignated will be set at 10 percent of the next years operating budget with any excesses or deficiencies transferred to or from certain funds. The expenditures in excess of revenues, for 1994, was a direct result of applying the Fund Balance and Excess Revenue Policy. vi ii