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GAS

DEVELOPMENT

OVERVIEW

Revenue for the Gas Development Fund is generated from natural gas development. In June

2006 City Council adopted a resolution creating a conservative policy on the use of natural
gas development revenues. The policy was established to avoid over-reliance on these

revenues and to establish how the revenues would be used. Caution was taken in
considering uses for gas revenues because it is difficult to predict well production and long

term production normally means the production decreases over time. In general the policy

guidelines establish three areas for using the money: (1) to bridge the gap of sales tax
revenue reductions, (2) to use “one time” revenues for projects or non-recurring capital
needs, and (3) to use the revenues for expanding the City’s economic base and for

economic development.

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