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Regular City Council Meeting Monday, July 17, 2017 Page 2 programs to determine what each fund needed to be most seriously addressed without having a huge impact on residents to carry those additional costs. Along that line, Councilmember Willmus sought clarification on the projected status for the Street Replacement Capital Improvement Program (CIP) funding at five, ten and twenty year increments in the additional attachment to the staff re- port as referenced above. Mr. Miller responded that the report showed the Street Replacement CIP funding in good shape today. However, over the next twenty years, Mr. Miller noted that this CIP fund would eventually run out of money at the current pace, creating a challenge even though it was also a unique situation with time available to ad- dress the fund over the next 15-16 years, projecting a gap of approximately $1 million between revenue and expenditures at that point. Therefore, Mr. Miller noted staff's recommendation along with previous City Councils to repurpose ex- isting debt levies when they're paid off and add additional levy funding after that, including staff's recommendation in the 2018 budget to increase the levy by $160,000 to slowly strengthen the Street CIP fund to achieve a more sustainable point. Mr. Miller noted that the sooner that gap was addressed, the easier it would get, especially with the current cash reserve level at the end of 2016 at over $10 million. Councilmember Willmus noted that, earlier this year, discussion had been initiat- ed to potentially reallocate CIP dollars; and asked if staff had started that review or was waiting for the City Council to take the lead. City Manager Trudgeon responded that potential CIP reallocation was continually reviewed by all departments as standard operating procedure, especially when the city continued to have so many needs and limited cash to address those needs. When a CIP item can be deferred, Mr. Trudgeon advised that they were. Howev- er, Mr. Trudgeon noted several funds that would be experiencing problems sooner rather than later, advising that staff was focused on those. If the City Council identified some CIP items as unnecessary replacements, Mr. Trudgeon advised that staff would need to react accordingly. Trudgeon advised that staff continued to research additional or new funding sources, or how to do things differently in order to save money. Mayor Roe noted that, for the initial 2018 budget projections, in conjunction with previous CIP task force recommendations staff recommends adding new levy ca- pacity for the street CIP, after already previously repurposing existing levy funds (page 2). Councilmember McGehee opined that it was also important with the CIP to note that there was nothing anywhere near adequate being set aside for pathways and/or parking lot maintenance at this point, further opining that $5,000 per year per mile was the standard suggested allotment. Councilmember McGehee stated