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Page 2 of 10 The 2011 Recommendations – A Reminder of What Has Been Done 36 37 38Tax-Supported Capital Needs. 39 40Background. The tax-supported capital areas (other than Fire Station or Parks and Pathways 41needs) are Vehicles, Equipment, and Facilities. Vehicles represent City “rolling stock,” from 42police squad cars to fire trucks to snow plows to utility pick-up trucks. Equipment represents 43such things as firefighter turn-out gear, police firearms, office furnishings, and the like. 44Facilities capital needs generally do not include whole buildings, but rather major building 45systems, such as roof replacements or heating and air conditioning systems. These capital items 46are the “nuts and bolts” of doing City business on the tax-supported side of the ledger. 47 48Over $16 million (57%) of the $28 million in general Vehicle, Equipment, and Facility needs 49was un-funded as of 2011, using then-current funding levels and projected costs over the next 20 50years. 51 52Recommendation. The subcommittee recommended, and the City Council implemented, a long- 53term solution for Vehicles, Equipment, and Facilities that is a combination of shifting funding 54from operational costs to capital costs, re-purposing existing levy funding, and adding revenues. 55This recommended solution addressed 100% of the $16 million identified shortfall over the next 5620 years, and left the associated fund balances and annual funding at sustainable levels beyond 57that time. 58 59The first part of the implemented recommendation was to shift approximately $300,000 (about 602.0% of the then-current $14.7 million levy) from current operating budget funding to capital 61funding in 2012, and to maintain that shift permanently going forward. Approximately $115,000 62of that amount goes annually be dedicated to Vehicle funding, approximately $115,000 to 63Equipment funding, and the remaining approximately $70,000 goes to Facility funding. 64 65The second part of the implemented recommendation was to re-purpose for capital needs half of 66the $475,000 ongoing property tax levy that was “over-levy” to account for the loss of Market 67Value Homestead Credit reimbursement from the State, and to maintain that re-purposing 68permanently going forward. Approximately $95,000 of that amount would annually be 69dedicated to Vehicle funding, approximately $95,000 to Equipment funding, and the remaining 70approximately $47,000 would be dedicated to Facility funding. 71 72The third part of the implemented recommendation was to increase the annual property tax levy 73by $256,000 (1.8% of the current $14.7 million levy) in 2012, and to maintain that increase 74permanently going forward. Approximately $103,000 of that amount would annually be 75dedicated to Vehicle funding, approximately $103,000 to Equipment funding, and the remaining 76approximately $50,000 would be dedicated to Facility funding. 77