Agenda - Council Work Session - 11/10/2025

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(c) Expenditures shall consist of the following uses: (1) Happy Days and other events for which donations and or grants are received; and (2) Capital vehicles as outlined in the city's Capital Improvement Program. (d) This fund is eligible for inter -fund loans. 10. Lodging Tax Fund. (Fund 9298) (a) The Lodging Tax Fund shall be used to account for lodging tax revenue collected per Ordinance #24-17 and in accordance with City Code Chapter 27. (b) Funding shall consist of the following sources: (1) Lodging tax per Section 27.02 of City Code; and (2) 3% of monthly lodging tax will be retained and the remainder forwarded to Minnesota Metro North Tourism; and (3) Interest Earnings on the Lodging Tax Fund from the distribution of pooled interest earnings (c) Expenditures shall consist of the following uses: (1) 95% of proceeds shall be used in accordance with Minnesota Statutes 469.190 to fund a local convention, tourism, or visitor's bureau for the purpose of marketing and promoting the City as a tourist or convention center (Per Section 27.14 of City Code) (d)This fund is eligible for inter -fund loans. c. Debt Service Funds. (Funds 9300-9399) Debt Service funds are used to account for the accumulation of resources for, and the payment of, general long term debt principal and interest. 1. The City shall maintain one Debt Service Fund with individual fund activities created by staff on an as needed basis as required by Minnesota Statutes regarding debt issuance. Each debt issue shall be treated as a separate fund activity under one main Debt Service Fund. All assets, liabilities, fund equity, payments, and revenues shall be maintained as separate accounts for each activity. 2. These funds are not eligible for inter -fund loans. However, after retirement of the bonds, these funds may will be used at the discretion of the City Council to reduce debt service of outstanding debt. d. Capital Project Funds. Capital Project Funds shall be used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds and Trust Funds). The following are the City's Capital Project Funds: 1. Municipal State Aid Construction Fund (MSA). (Fund 9402) (a) The MSA Fund shall be used to account for state -aid allotments used by the City for improvement projects to thoroughfare streets designated as MSA streets within the City. (b) Funding shall consist of the following sources: Page 6 of 14