1997 BUDGET - Laserfiche WebLink

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Description of Funds (con't) to drainage systems; and for capital equipment. These funds are identified in the Capital Projects Fund. The Capital Projects Fund was created in 1989 to account for monies received as a result of a one -percent (1 percent) increase in the city's sales tax starting July 1, 1989. The city issued $5,265,000 in Sales Tax Revenue Bonds in 1989 to finance certain capital improvements for the City, including a library facility, a City recreation center, and various other capital improvements. In 1992 the City refunded the City's Sales Tax Revenue Bonds, Series 1989. The Capital Project fund currently pays the debt service for the 1993 Sales Tax Revenue Bonds and finances various capital projects such as street, alleys, sidewalks, downtown improvements and park improvements. Enterprise Funds Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing these services to the general public on a continuing basis be financed or recovered primarily through user charges. The most common type of enterprise funds operated by a municipality are public utilities. The City of Louisville operates two utility enterprise funds (water and sewer) and a municipal golf course. These three enterprise funds are accounted for separately. This separation is essential to determine the total costs of providing each of the three services to the citizens and to assure that the resources of one enterprise are not improperly used by the other. Council financial management requires that an operating budget for each enterprise fund be prepared. Operating revenues (user fees) are carefully balanced against operating expenditures (administrative and operational expenses) in order to achieve self-sufficiency in these operating budgets. For the Water and Sewer Enterprise Funds, we have prepared five-year capital projects budgets. It is the City's intent that the costs of expanding the utility systems be financed by the developer and new customers. The capital project budget is used as a tool to prioritize those capital improvements which can be provided for on a pay-as-you-go basis, analyze the utility system's need for future debt financing and anticipate rate increases. Revenue sources for the projects are generated from fund balances, tap fees, developer contributions, asessment fees and earnings on investments. The major capital construction projects planned for the next five years are based on projected demand on the water and sewer systems. The speed of new development will affect both the need for these new facilities and the resources available to fund the projects. Water Utility Fund The City of Louisville provides water treatment and distribution to approximately 6,000 customers accounts within the boundaries of the city. The 1997 operating revenues for the Water Fund are budgeted at $2,980,219 35