|
35
<br />36 The Partial Recommendation
<br />37
<br />38 Tax-,'Yupported Capital Needs. The tax-supported capital areas (other than Fire Station or Parks
<br />39 and Pathways needs) are Vehicles, Equipment, and Facilities. Vehicles represent City "rolling
<br />4O stock," from police squad cars to fire trucks to snow plows to utility pick-up trucks. Equipment
<br />41 represents such things as firefighter turn-out gear,, police firearms, office furnishings, and the
<br />4 like. Facilities capital needs generally do not include whole buildings, but rather major building
<br />43 systems, such as roof replacements or heating and air conditioning systems. These capital items
<br />44 are the "nuts and bolts" of doing City business on the tax-supported side of the ledger.
<br />45
<br />4 Over $,16 million (57%) of the $,28 million in general Vehicle, Equipment, and Facility needs is
<br />47 un-fanded using current funding levels and projected costs over the next 20 years.
<br />48
<br />4 The subcommittee recommends a long-term solution for Vehicles, Equipment, and Facilities that
<br />50 is a combination of shifting funding from operational costs to capital costs, adding revenues, and
<br />51 transferring existing funds. This recommended solution addresses 100% of the $,16 million
<br />52 shortfall over the next 20 years, and leaves the associated fund balances and annual funding at
<br />53 sustainable levels beyond that time.
<br />54
<br />55 The first part of the recommendation is to shift approximately $,300,000 (about 2.0% of the
<br />56 current $,14.7 million levy) from current operating budget funding to capital funding in 2012, and
<br />57 to maintain that shift permanently going forward. Approximately $,115,000 of that amount
<br />58 would annually be dedicated to Vehicle funding, approximately $,115,000 to Equipment funding,
<br />59 and the remaining approximately $,70,000 would be dedicated to Facility funding.
<br />60
<br />61 The second part of the recommendation is to increase the annual property tax levy by $,500,000
<br />62 (3.4% of the current $,14.7 million levy) in 2012, and to maintain that increase permanently
<br />63 going forward. Approximately $,192,000 of that amount would annually be dedicated to Vehicle
<br />64 funding, approximately $,192,000 to Equipment funding, and the remaining approximately
<br />65 $,116,,000 would be dedicated to Facility funding.
<br />66
<br />67 The third part of the recommendation is to transfer $,750,000 from the General Fund to the
<br />68 Equipment Replacement Fund (which currently has a $,0 balance) in 201 2,, creating a sustainable
<br />69 fund balance in that fund.
<br />70
<br />71 These recommended actions would total an ongoing annual increase in capital funding for
<br />72 Vehicles,, Equipment, and Facilities of $,800,000, creating a sustainable funding mechanism for at
<br />73 least the next 20 years. Approximately 40% of the increased funding comes from operating
<br />74 spending cuts and 60% from increased property taxes.
<br />75
<br />76 The subcommittee notes that,, when anticipated inflationary type cost increases of approximately
<br />77 $,140,,000 for 2012 are factored into the equation, assuming no increase in the levy to cover those
<br />78 cost increases,, the operational budget cut totals $,440,000, or about 3.0% of the current $,14.7
<br />79 million levy, bringing the ratio of cuts to new revenues closer to one-to-one ($,440,000 and
<br />80 $,500,,000 respectively).
<br />
|