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decrease is found in Surface Water as a majority of these projects were absorbed into the Street Projects. PIR Fund • The city has about $60 million of streets and trails (based on 29.42 miles of city streets). Estimating the useful life of these assets at 40 years would require an investment of about $1.5 million annually. The current funding sources of the tax levy, Municipal State Aid and special assessments account for about $920,000 on average per year for 2024-2028. This gap in the CIP fluctuates from year-to-year, but will need to be addressed over time. • A property tax levy of $250,000 is being proposed for 2024, which is unchanged from 2023. Based on potential projects, this amount should be increased. • 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 are not sufficient MSA funds to cover the projects included in the CIP for the next 10 years. Based on current projections, our MSA fund will be short by $2.57 million at the end of 2033 and won't be positive again until 2042. • The Lake Johanna Blvd trail project and 2028 PMP were added to the CIP. • 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. • Projects were programmed to try and get the City on a schedule of completing a major street reconstruction project every other year. • The 3 types of street improvement projects being considered based on condition are: o Resurfacing is the milling of the top 1.5 to 2 inch surface layer of street pavement and overlaying the street with a new bituminous surface layer. o Full Depth Reclamation involves spot repair of existing curb, milling or reclaiming the full depth of existing bituminous pavement, blending milled material with underlying aggregate material and installing a new bituminous pavement section. o Reconstruction involves removal and replacement of larger quantities of existing curb, installing underlying subgrade correction materials, new aggregate base and a new bituminous pavement section. • Future PMP projects included in the CIP (2025 and beyond) assume Full Depth Reclamation will be required. Costs will decrease if Resurfacing is required and increase if Reconstruction is required. Public Safety Capital Equipment Fund • The fund is currently being used to account for capital expenditures made by the Lake Johanna Fire Department. • The assumption being used for this CIP is that debt service on the new fire station will begin in 2026 at $140,300 and increase to $280,600 in 2027 per year. • Engine/ladder truck replacements are scheduled for 2024, 2027 and 2029. • The current $220,000 tax levy does not support the needs of this fund. Could possibly apply a portion of the one-time Public Safety Aid being allocated to the City to assist with the fund deficit. Page 2 of 4