City Council Agenda and Packet 2013 06 27

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Another important revenue source for the Capital Projects Fund is the transfer of impact fees from the Impact Fee Fund. We transferred nearly $1.8 million from 2008 through 2012. We project another $575,000 to be transferred in 2013 and $2.5 million from 2014 through 2018. It is important to note that the assumptions on building-related revenue (primarily building use tax, impact fees, and tap fees) are a key element of the financial projections for the Capital Projects Fund. Recall that in 2012, Council approved a $2 million one-time transfer from the General Fund to the Capital Projects Fund. In order to fund the additional amount of capital projects recommended in the C-I-P, I also recommend an additional $6.8 million transfer from the General Fund to the Capital Projects Fund between 2014 and 2018. These transfers can be broken down into the following categories: • Net Building Revenue — Due to the significant amount of one-time building- related revenue projected to come into the General Fund over the next five years (Construction Permits, Minor Permits, etc.), I am proposing transferring the General Fund's "net" building revenue to the Capital Projects Fund. Net building revenue is defined as total building-related revenue less the operating cost of the Building Safety Division. This transfer amounts to approximately $3 million from 2014 through 2018 and will help fund one-time capital costs associated with the Planning and Building Safety Department, including new permitting software. • Matching Funds for SH 42 Corridor Improvements —This project totals $17.4 million, but has offsetting grant revenue of $14.4 million requiring a City match of$3 million ($1.5 million for both 2016 and 2017) • Funding for Quiet Zones — This project amounts to $1.2 million. I propose to fund $800,000 of the project with an $800,000 transfer in 2016. As previously stated, the final transfer is the remaining equity of the Building Maintenance Fund ($400,000), which I am proposing for 2013 via a budget amendment. We incorporated all these proposed transfers into transactions affecting each fund and we applied the assumptions and targets discussed above (as well as many others) to generate five-year projections of revenue, expenditures, and reserves for each fund. The following line graph shows a thirteen-year history, current year estimate, and a five-year projection of revenue, expenditures, and fund balances for the General Fund. Graphs for the other funds are included elsewhere in this transmittal letter. V 7