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Page 3 of 10 These implemented actions totaled an ongoing a nnual increased capital funding for Vehicles, 78 Equipment, and Facilities of $800,000, creating a su stainable funding mechanism for at least the 79 next 20 years. Approximately 40% of the increased funding came from permanent operating 80 spending cuts and 32% from increas ed property taxes (the rest was from re-purposing of existing 81 levy funding. 82 83 84 Utility Needs. 85 86 Background . The fee-supported Utilities in the City with significan t un-funded capital needs are 87 the Water Utility, the Sanitary Sewer Utility, a nd the Stormwater Uitilit y. These utilities all 88 consist largely of underground piping systems th at were installed over a period from the 1940’s 89 to the 1970’s as the City devel oped. In addition, the Water Uiti lty includes the City’s water 90 tower, and the Stormwater Utility includes a num ber of City-maintained stormwater management 91 ponds. This capital infrastructure is provided by the City to deliv er safe drinking water to the 92 homes and businesses in the City, to take away sanitary sewer wastewater to the Metropolitan 93 Council’s sewer system and treatment facility for sa fe treatment, and to safely collect stormwater 94 run-off, treat it, and deliver it to the environment via the streams, lakes, and other waterways of 95 the area. 96 97 Much of the piping in these systems is appr oaching 50-60 years of ag e, and was made of 98 materials that have been found to not last much longer than that, if even that long. The cast iron 99 of the water mains is brittle and subject to l eaking and breaks as the result of ground shifting, 100 tree roots, etc. The clay tile of the sanitary sewer lines is simila rly subject to leaks and breaking. 101 Since the City pays St. Paul for drinking water, each leak or break in a line costs the City’s 102 residents and businesses in higher rates to account for that un-used water we purchase. Leaks of 103 raw sewage into the ground pose a danger to the environment. 104 105 In an effort to keep current and future co sts down, the City is using new materials and 106 technologies to replace or repair existing water an d sewer mains. Where City streets are being 107 completely replaced, the water and sewer lines are being replaced (as need ed) with more durable 108 materials. Where streets are not programmed fo r replacement for many years, the City is using 109 re-lining technology that puts a ne w plastic pipe inside the exis ting pipe, and does not require 110 excavation of the street. 111 112 The capital infrastructure funding gap over the ne xt 20 years in these Utility funds was about $47 113 million out of total projected costs of $65 million in 2011. In other words, 72% of the projected 114 costs were then un-funded. 115 116 Recommendation . The subcommittee recommended, and the City Council implemented, a long-117 term solution for funding the sign ificant capital re placement needs of these Utilities that was 118 based on additional revenues. 119 120