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Page 2 of 3 <br /> <br /> <br />PIR Fund <br />x The city has about $60 million of streets and trails (based on 29.42 miles of city streets). <br />Estimating the useful life of these assets at 40 years would require an investment of about <br />$1.5 million annually. The current funding sources of the tax levy, Municipal State Aid and <br />special assessments account for about $1.1 million on average per year. This gap in the CIP <br />fluctuates from year-to-year, but will need to be addressed over time. <br />x A property tax levy of $250,000 is being proposed for 2022, which is unchanged from 2021. <br />x The city has been able to self-finance the special assessment portion thus far. However, with <br />the cost of these projects increasing, we may need to eventually look at bonding for the <br />special assessment portion of street projects. Current projections do not include any <br />prepayments of special assessments. <br />x There is a definite need to stay on top of street improvement projects to ensure streets reach <br />their useful lives and don’t require costly premature full reconstructions. Several areas of the <br />city are reaching those crucial ages that significant outlay is needed to ensure the long-term <br />vitality of the streets. <br />x Some of the future projects were moved out even further to try and get the City on a schedule <br />of completing a major street reconstruction project every other year. <br />x The Snelling Ave. road project (County Road E to Highway 51) is scheduled to proceed in <br />2022 but the intersection was separated out as its own project and isn’t scheduled until 2023. <br />x The two trail projects (Mounds View High School and Snelling Avenue N) for which grant <br />funding is being looked into, are not currently included in the CIP. <br />x The 3 types of street improvement projects being considered based on condition are: <br />o Resurfacing is the milling of the top 1.5 to 2 inch surface layer of street pavement and <br />overlaying the street with a new bituminous surface layer. <br />o Full Depth Reclamation involves spot repair of existing curb, milling or reclaiming the <br />full depth of existing bituminous pavement, blending milled material with underlying <br />aggregate material and installing a new bituminous pavement section. <br />o Reconstruction involves removal and replacement of larger quantities of existing curb, <br />installing underlying subgrade correction materials, new aggregate base and a new <br />bituminous pavement section. <br /> <br />Public Safety Capital Equipment Fund <br />x The fund is currently being used to account for capital expenditures made by the Lake <br />Johanna Fire Department. <br />x A transfer from the General Fund was completed in 2020 to cover the city’s cost of the land <br />for the new fire station. <br />x The assumption being used for this CIP is that debt service on the new fire station will begin <br />in 2025 at $195,000 per year and continuing for 15 years. This could be decreased to <br />$155,000 if we were to bond for 20 years. Property tax levy increases are proposed for the <br />years 2021-2025 with a final total levy increase of $225,000. <br />x Major vehicle purchases are projected to occur in 2022, 2025, 2027 and 2029. LJFD may <br />need to reevaluate their need and look at spreading these costs out over a longer period of <br />time to level off the funds needed from contract cities. <br /> <br />Equipment & Building Replacement Fund <br />x The current plan includes completion of the city hall parking lot project in 2022.