FY26 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 r oad 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 revised fund balance on June 30, 2025 is projected to be $6,366,129, a decrease of $374,400 or 5.6% from the fiscal year 2024 year-end balance. This decrease is primarily due to a conservative estimate in Road Use Tax revenue.

The fiscal year 2026 estimated fund balance is budgeted to decrease by another $1,269,600 to $5,096,529. This decrease is due to a one-time increase in capital projects funding.

Fund Balance (1)

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

FY2023 FY2027 Unassigned $6,170,699 $6,740,529 $6,366,129 $5,096,529 $4,757,340 $0 FY2024 FY2025 FY2026

(1) FY25 - FY27 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 6/30/25

Total Payment FY26

Final Payment

FY26 Principal

FY26 Interest

Loan

Date

Loan Amount

2019 Public Works Facility Loan

6/30/2019

$ 1,400,000

2036

$ 969,644

$ 93,173

$ 79,168

$ 14,005

379