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Roseville Finance Commission Agenda Item Page 7 of 11 Funding Strategies and Impacts As noted earlier, most of the city’s asset replacement funds are at or near financially sustainability as long as property tax and fee revenue increases commensurate with projected costs. However, there are four asset replacement programs that will require corrective measures in the near term including:  General Facility Replacement Fund  Park Improvement Fund (PIP)  Street Improvement Fund (PMP)  Golf Course Fund The projected deficits in these areas have long been identified as a funding need. On November 19, 2012 the City Council adopted Resolution #11027 which, along with an accompanying staff memo, outlined the following CIP-related funding recommendations for 2018 and beyond: Year Amount Program Description 2018 160,000 Pavement Management Program Add additional tax levy 2019 355,000 General Facilities Repurpose levy from Arena Bond issue #28 2019 200,000 Pavement Management Program Add additional tax levy 2020 650,000 Park Improvement Program Repurpose levy (partial) from Bond issue #27 In adopting the resolution, it was noted that the referenced amounts did not account for inflationary-type impacts and may need to be adjusted in future years. It was also recognized that the CIP projections will fluctuate from year-to-year due to changing operational priorities and market conditions. Given these considerations and revised CIP cost projections, Staff recommends the city continue with previous Council’s funding recommendations including the following for 2018. Funding Recommendation #1 In 2018, enact a $160,000 tax levy increase for the Pavement Management Program as originally recommended by the Council in 2012. Funding Recommendation #2 Take the one-time measure of dedicating $500,000 of the $1.1 million in excess TIF District #13 funds that were returned to the City in 2016; towards General Facility Replacements. Funding Recommendation #3 For 2017, continue to adjust the base rates for the water, sanitary sewer, and storm sewer as needed to accommodate planned capital replacements. A more specific recommendation will be forthcoming after the annual utility rate analysis is complete. Funding Recommendation #4 For the $2 million in OVAL improvements scheduled for 2020, assume that the City will receive an equivalent appropriation from a future State Bonding Bill.