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Page 3 of 3 <br /> <br />x The long-term asset management plan for equipment has not yet been completed so purchases <br />are only scheduled out for 5 years. <br /> <br />Utility Funds <br />x Public Works staff continues to evaluate the condition of City utilities throughout the <br />community. The majority of street projects currently include a minimum amount for isolated <br />utility repairs. Staff will complete a comprehensive review of the utility systems to identify <br />locations where broader water, sanitary sewer and drainage replacement is needed. This will <br />increase the forecasted capital expenses for the utility funds. <br />x Rate increase assumptions are as follows: <br />ƒ Water – 2022-2024 (4.5%); 2025-2026 (0%); 2027-2028 (2%); 2029-2031 (0%) <br />ƒ Sewer – 2022-2025 (3.5%); 2026 (0%); 2027-2031 (2%) <br />ƒ Storm – 2022 (3%); 2023-2031 (0%) <br /> <br />Council Direction <br />Staff is seeking direction from the City Council regarding the following items: <br /> <br />2022 projects <br />As we review the 2022 projects, does the Council have any questions, comments or concerns <br />about including them during budget preparation? <br /> <br />2022 property tax levy <br />The levies for the EDA ($100,000), Equipment/Building Replacement ($50,000) and PIR <br />($250,000) are currently proposed to remain at the same amount as was levied in 2021 in this plan. <br />The plan reflects a $50,000 increase in the levy for the Public Safety Capital Fund, going from <br />$120,000 to $170,000. It is assumed that levy increases will be needed each year from 2022-2025 <br />to ensure the City has sufficient cash on hand to make its debt service payments once the new fire <br />station is built. Should staff continue forward with this assumption? <br /> <br />2021 General Fund transfer <br />There is $548,000 available to transfer from the General Fund to capital funds in 2021. This total <br />represents the amount at 12/31/2020 that was in excess of the 50% fund balance reserve goal <br />stated in the City’s financial policies. There are needs in the PIR and Public Safety Capital <br />Funds. Does the Council have a preference on where the funds should go? <br /> <br />Budget Impact <br />The Council should review the estimated fund balances and funding sources with special attention <br />given to the Public Safety Capital and Utility Funds. <br /> <br />Attachments <br />Attachment A: PowerPoint Overview of Capital Improvement Plan <br />Attachment B: Capital Improvement Plan <br /> <br />