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309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 Page 9 of 10 Total Impact of the 2012 CIP Subcommittee Recommendations The table below illustrates the annual levy impacts of the proposed changes (independent of any other levy changes that may be required). Table 1. Annual Levy Impacts of 9 -Year CIP Implementation. All figures are in 2012 dollars. Levy change percentages do not account for other types of levy impacts, such as operating cost increases. Additional Recommendations The CIP Subcommittee recommends strongly that the City Council adopt this plan by resolution, making it the policy of the City, incenting future City decision makers to follow through on these critical funding plans. Further, the Subcommittee recommends adopting a change to the existing Capital Replacement Policy to require biennial reviews of the capital fund balance projections based on the latest 20- Year Capital Improvement Plan in order to be sure that the funding of capital needs keeps pace with changes in the plan as well as updates to costs based on inflation. The objective of the policy should be to make sure that sustainable positive fund balances can be projected in each fund over the coming 20 years, and that capital funding amounts in the tax levy and utility fees are adjusted to keep up with those requirements. Funded by Re- Approx. Total CIP Purposed Net Levy % Change Funding Funded by Existing Increase to Levy for Biennium Year Increase Cuts Levy Required CIP Fundin 2012 $800,000 $306,500 $237,500 $256,000 1.8% 2012/13 2013 $185,000 $0 $0 $185,000 1.3% 2014 $200,000 $0 $0 $200,000 1.2% 2014/15 2015 $315,000 $0 $160,000 $155,000 0.9% 2016/17 2016 $310,000 $0 $150,000 $160,000 0.9% 2017 $160,000 $0 $0 $160,000 0.9% 2018 $495,000 $0 $335,000 $160,000 0.9% 2018/19 2019 $200,000 $0 $0 $200,000 1.1% 2020 $650,000 $0 $650,000 $0 - 2020/21 2021 $0 $0 $0 $0 - Total ofChanges: $3,315,000 $306,500 $1,532,500 $1,476,000 -10% of Total Change: 9% 46% 45% Table 1. Annual Levy Impacts of 9 -Year CIP Implementation. All figures are in 2012 dollars. Levy change percentages do not account for other types of levy impacts, such as operating cost increases. Additional Recommendations The CIP Subcommittee recommends strongly that the City Council adopt this plan by resolution, making it the policy of the City, incenting future City decision makers to follow through on these critical funding plans. Further, the Subcommittee recommends adopting a change to the existing Capital Replacement Policy to require biennial reviews of the capital fund balance projections based on the latest 20- Year Capital Improvement Plan in order to be sure that the funding of capital needs keeps pace with changes in the plan as well as updates to costs based on inflation. The objective of the policy should be to make sure that sustainable positive fund balances can be projected in each fund over the coming 20 years, and that capital funding amounts in the tax levy and utility fees are adjusted to keep up with those requirements.