FY 17 Annual Report

Special Revenue Funds

2017

CITY OF SPENCER, IOWA

ROAD USE TAX

FUND #110

FUND INFORMATION

The Road Use Tax fund accounts for revenue sharing from state taxes related to transportation (road use taxes). Road use taxes include gasoline taxes, weight taxes, and vehicle license fees collected through the state and deposited into the Iowa Road Use Tax Fund (RUTF). After some off-the-top diversions, receipts into the RUTF are distributed according to a formula of 47.5% for the state primary road system, 24.5% for secondary county roads, 8% for farm-to-market roads, and 20% for city streets. In 2008, an additional source of state revenue was established through legislation creating a separate "TIME-21" funding system. This revenue is dedicated primarily to maintenance and construction of certain primary highways in the state (60%), but a portion is also allocated to secondary roads (20%) and city streets (20%). The new revenue stream was created by changing certain vehicle registration fees and schedules and by increasing trailer and title fees. In 2015, the State of Iowa increased the fuel tax by $.10 a gallon. This increase will generate additional funds for the Road Use Tax fund and the City will apply these funds towards future street projects. The road use tax funds are distributed to cities based on the last official population count as established by the most recent U.S. Census. The use of these funds is restricted for street and storm sewer maintenance, repair and construction. This includes engineering, street lighting, street signs and signals, snow removal, street cleaning, right-of-way maintenance, and related activates. In past years, the City has spent more on these functions than it has received in road use tax receipts and supplemented the additional expenses with general property tax revenue. In FY17, the City ended with a surplus in the road use tax fund. The City will apply these surplus funds towards future street construction and maintenance projects.

CURRENT BUDGET

YEAR TO DATE

% OF

FY 2017 ACTUAL

ACTUAL

BUDGET

REVENUES

INTERGOVERNMENTAL

1,285,167.53

1,394,563.82 154,578.84

108.51

1,603,885.82 215,720.00 1,388,165.82

OTHER FINANCING

-

-

TOTAL REVENUES

1,285,167.53

1,549,142.66

120.54

EXPENDITURES TRANSFERS

1,341,001.00

1,438,077.28

-

1,271,576.39 1,271,576.39

1,341,001.00

1,438,077.28

107.24

TOTAL EXPENDITURES

Fund Balance

INCREASE / (DECREASE)

BALANCE

BALANCE

REVENUES

EXPENDITURES

JULY 1, 2016

JUNE 30, 2017

111,065.38

786,031.27

1,549,142.66

1,438,077.28

897,096.65

SPECIAL REVENUE