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PIR Fund • The city has about $112.4 million of streets and trails. Estimating the useful life of these assets at 40 years would require an investment of about $2.8 million annually. The current funding sources of the tax levy, Municipal State Aid and special assessments account for about $1.1 million on average per year. This gap in the CIP fluctuates from year-to-year, but will need to be addressed over time. The fund balance was just over $6 million at the end of 2017 and is projected to drop to $770,000 by the end of 2025. • A property tax levy of $250,000 is being proposed for 2021, which is unchanged from 2020. • The city has been able to self-finance the special assessment portion thus far. However, with the cost of these projects increasing, we may need to eventually look at bonding for the special assessment portion of street projects. Current projections do not include any prepayments of special assessments. • There is a definite need to stay on top of street improvement projects to ensure streets reach their useful lives and don’t require costly premature full reconstructions. Several areas of the city are reaching those crucial ages that significant outlay is needed to ensure the long-term vitality of the streets. • The Snelling Ave. road project (County Road E to Highway 51) is scheduled to proceed in 2022 but the round-a-bout was separated out as its own project and isn’t scheduled until 2026. • The two trail projects (Mounds View High School and Snelling Avenue N) for which state funding is being requested, are not currently included in the CIP. Information has been added to the bottom of the Sources and Uses for the PIR Fund to show the potential impact of these projects if they are approved for state funding. Public Safety Capital Equipment Fund • The fund is currently being used to account for capital expenditures made by the Lake Johanna Fire Department. • It is proposed to utilize a transfer from the General Fund in 2020 to cover the city’s cost of the land for the new fire station. • The assumption being used for this CIP is that debt service on the new fire station will begin in 2025 at $195,000 per year and continuing for 15 years. This could be decreased to $155,000 if we were to bond for 20 years. Property tax levy increases are proposed for the years 2021-2025 with a final total levy increase of $225,000. • Major vehicle purchases are projected to occur in 2026, 2027 and 2028. LJFD will need to reevaluate their need and look at spreading these costs out over a longer period of time to level off the funds needed from contract cities. Equipment & Building Replacement Fund • The current plan includes $350,000 for HVAC equipment in 2020 and $300,000 for the city hall parking lot in 2021. • The long-term asset management plan for equipment has not yet been completed so purchases are only scheduled out for 5 years. Utility Funds • The City conducted a rate study in 2017-2018 to address utility rates and financing further Enterprise Fund operations. The assumptions used for these cash projections includes the rate increases proposed in the study. The adopted rate increases may differ from the study because they are based on an analysis of actual operations and updated estimates. For