FY2024 Proposed Budget

ROAD USE TAX FUND

The Road Use Tax Fund (RUTF) accounts for revenue sharing from state taxes related to transportation (road use taxes). The City’s use of road use taxes is restricted to street and storm sewer maintenance, repair, and construction including engineering, streetlights, traffic signs and signals, snow removal, street cleaning, right-of-way maintenance, etc. Fund Balance: Road Use Tax Fund’s fund balance on June 30, 2023 is projected to be $4,764,162, a decrease of $322,892 or 6.3% from the fiscal year 2022 year-end balance. This decrease is primarily due to a conservative estimate in Road Use Tax revenue. The fiscal year 2024 estimated fund balance is budgeted to decrease by another $327,921 to $4,436,241. This decrease is also a result of a conservative estimate in Road Use Tax revenue.

Fund Balance (1)

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

FY2020 FY2025 Unassigned $3,547,923 $4,405,316 $5,087,054 $4,764,162 $4,436,241 $4,084,754 $0 FY2021 FY2022 FY2023 FY2024

(1) FY23 - FY25 figures are estimates.

The Road Use Tax Fund borrowed $1.4 million from the Landfill Cell Replacement Reserve during fiscal year 2019 to help construct portions of the new Public Works Facility. The following is a summary of that loan:

Principal Outstanding as of 6/30/23

Total Payment FY24

Final Payment

FY24 Principal

FY24 Interest

Loan

Date

Loan Amount

2019 Public Works Facility Loan

6/30/2019

$ 1,400,000

2036

$ 1,124,419

$ 93,173

$ 76,786

$ 16,387

384