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receive $121,471 of LGA in 2024. Staff recommends that these funds are not used for general operations (the state has unallotted LGA in the past) but instead direct them toward capital projects. They are included in the PIR Fund in this plan. Does the Council have a preference on where the funds should go? Public Safety Aid The City is being allocated one-time Public Safety Aid in the amount of $433,084. These funds can only be used to cover police and fire expenditures. How does the Council want to allocate these funds? Additional Funding Mechanisms There are additional funding mechanisms available to cities to take some of the burden off of the property tax levy. Options such as Franchise Fees and Local Sales Taxes can bring in monies from exempt properties and non -property owners. During the 2023 legislative session, a moratorium was placed on local sales tax authorizations through the 2025 legislative session. Does the Council want staff to begin exploring additional funding mechanisms such as Franchise Fees or Local Sales Tax? Budget Impact The Council should review the estimated fund balances and funding sources with special attention given to the Equipment/Building Replacement and Public Safety Capital Funds. When considering what tax levy increases are needed to support the capital funds, it should be noted that preliminary results of department submissions and other assumptions have the General Fund expenditures increasing by $693,840, which would equate to a 14.7% levy increase. This is without taking into account any changes to the revenue budget from 2023. Attachment C gives a preliminary snapshot of the increases being considered for the General Fund. Attachments Attachment A: PowerPoint Overview of Capital Improvement Plan Attachment B: Capital Improvement Plan Attachment C: Preliminary expenditure increases for 2024 General Fund Budget Page 4 of 4