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Roseville Finance Commission Agenda Item Page 3 of 11 In contrast to the projected CIP spending of $188.9 million, the City expects to have only $166.5 million available over that same time period based on current funding and cash reserve levels; leaving a funding deficit of $22.4 million. In comparison, the funding deficit just five years ago was nearly $70 million. For both legal and planning purposes, the City has created a number of separate capital replacement funds to promote greater transparency and accountability. This necessitates a review of individual funds to determine whether they’re financially sustainable. Asset replacement funds categorized by property tax-supported and fee-supported are shown below. Analysis of Asset Replacement Funds: Property Tax-Supported The following table summarizes the City’s tax-supported asset replacement funds along with their funding status based on current revenues, existing cash balances, and projected expenditures. 5-Year 5-Year 10-Year 20-Year Tax-Supported Funding Surplus Funding Funding Capital Replacement Fund Status (Deficit)Status Status Administration 875%38,725$ 99%134% Finance 125%25,124 113%99% Central Services 118%71,775 105%99% Police 122%373,906 108%101% Fire 113%312,233 112%113% Public Works 137%500,360 127%101% Parks & Recreation 130%219,411 123%136% General Facility Improvements 35%(3,589,533) 41%47% Information Technology 140%420,461 126%105% Park Improvements 43%(2,106,045) 32%29% Street Improvements 162%6,952,762 112%82% Street Lighting 116%27,368 108%109% Pathways/Parking Lots (Existing)86%(228,440) 95%102% As shown in the table above, there are three tax-supported funds that have less than a 95% funding level over the next five years and will require near-term corrective measures to bring it closer to financial sustainability. A funding level of 100% means that it has sufficient cash flows to pay for all items included in the CIP. This is not however representative of what a particular city function needs for day- to-day operations. It should also be noted that while the Street Improvements Fund has sufficient cash flows to meet its needs over the next decade, it is projected to incur annual deficits throughout this period ranging from $439,000-$952,000. A closer look at the General Facility Replacement and Park Improvement Funds are presented below. General Facility Replacements The City’s general facilities include; City Hall, Public Works Building, Skating Center, Fire Station, and Community gyms. Over the next 20 years, $11.6 million in planned improvements are scheduled with only $5.0 million in available funding based on current revenues and cash reserves. This is depicted in the chart below.