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Page 2 of 10 The 2011 Recommendations – A Remi nder of What Has Been Done 36 37 Tax-Supported Capital Needs. 38 39 Background . The tax-supported capital areas (other th an Fire Station or Parks and Pathways 40 needs) are Vehicles, Equipment, and Facilities. Vehicles represent City “rolling stock,” from 41 police squad cars to fire trucks to snow plows to utility pick-up trucks. Equipment represents 42 such things as firefighter turn -out gear, police firearms, offi ce furnishings, and the like. 43 Facilities capital needs genera lly do not include whole buildi ngs, but rather major building 44 systems, such as roof replacements or heating an d air conditioning systems. These capital items 45 are the “nuts and bolts” of doing City busine ss on the tax-supported side of the ledger. 46 47 Over $16 million (57%) of the $28 m illion in general Vehicle, Equipment, and Facility needs 48 was un-funded as of 2011, using then-current fundi ng levels and projected costs over the next 20 49 years. 50 51 Recommendation . The subcommittee recommended, and the City Council implemented, a long-52 term solution for Vehicles, Equipment, and Facil ities that is a combination of shifting funding 53 from operational costs to capital costs, re-pur posing existing levy funding, and adding revenues. 54 This recommended solution addressed 100% of the $16 million identified shortfall over the next 55 20 years, and left the associated fund balances and annual funding at su stainable levels beyond 56 that time. 57 58 The first part of the implemented recomme ndation was to shift approximately $300,000 (about 59 2.0% of the then-current $14.7 million levy) from current operating budget funding to capital 60 funding in 2012, and to maintain that shift pe rmanently going forward. Approximately $115,000 61 of that amount goes annually be dedica ted to Vehicle funding, approximately $115,000 to 62 Equipment funding, and the remaining approximately $70,000 goes to Facility funding. 63 64 The second part of the implemented recommendation was to re-purpose for capital needs half of 65 the $475,000 ongoing property tax levy that was “ove r-levy” to account for the loss of Market 66 Value Homestead Credit reimbursement from the State, and to maintain that re-purposing 67 permanently going forward. Approximately $95,000 of that amount would annually be 68 dedicated to Vehicle funding, approximatel y $95,000 to Equipment funding, and the remaining 69 approximately $47,000 would be dedicated to Facility funding. 70 71 The third part of the implemented recommendati on was to increase the annual property tax levy 72 by $256,000 (1.8% of the current $14.7 million levy) in 2012, and to maintain that increase 73 permanently going forward. Approximately $103,000 of that amount would annually be 74 dedicated to Vehicle funding, approximately $103,000 to Equipment funding, and the remaining 75 approximately $50,000 would be dedicated to Facility funding. 76 77