2023-11-08 CC Packet - Laserfiche WebLink

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Having said all this, the fund goes into deficit in 2025 with the purchase of the new dump truck and stays in deficit with the purchase of the second dump truck. These are once in 20+ year purchases. It doesnÓt seem to make sense to raise the annual contribution too high just to cover these expenditures and then drop down again after these two purchases. That defeats the process Council has followed of making incremental changes and keeping tax levy increases on a low, steady basis. Staff would propose that we get a one-time infusion of cash from the Water and Sewer funds since they have not contributed to the replacement fund in recent memory. Much of the equipment included also serves these enterprise funds. With cash on hand of $3,609,000 and $2,585,000 respectively, and only modest capital outlays planned, it would not hurt either to transfer $300,000 each to the capital fund. That would keep the capital fund positive through 2031 with only a one-year deficit which corrects itself in 2032 if everything happens as planned. An alternative would be to start making annual transfers from the utility funds with a lower one-time cash infusion. Remaining unaddressed in this analysis are several big questions. The Park & Recreation Committee and the City Council need to decide how to proceed with the skate park, hockey rink, and either remodeling or replacing the warming house. We also need updated quotes to replace existing playground equipment. While much of the cost for these improvements is programmed into the Park Dedication Fund Capital Improvement Plan, the General FundÓs Capital Equipment Replacement Fund should also contribute. Essentially, the General Fund should pay for the equivalent of replacement and the Park Dedication Fund should pay for the ÐupgradeÑ costs. Street Projects Fund Expenditures Staff used the 2022 Thin Overlay and City Hall Parking Lot project as the new cost standard. That cost has been inflated by 3% for each year in the schedule beyond that base level cost. The cost breakdown percentages in 2022 between Parking Lot and Streets is from the Feasibility Report that the City Council used as a basis for ordering the project. Every street and trail segment is resurfaced at least once during this timeframe through 2040. Based on current conditions and the expected life of the underground utilities, there are no full-depth reconstructions anticipated. The streets and sidewalks are all scheduled for a mill and thin overlay based on the City EngineerÓs experience. Revenues Staff has updated the estimate of revenues from special assessments to include our experience on the 2022 project. We now are estimating that roughly one half of all project assessments will be paid in the current year. For the remaining half, we assume they will be repaid equally over three years of assessments received from Anoka County