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256 Based on the needs identified in the 2023-2042 CIP, Staff recommends the following strategies. <br />257 <br />258 Strategy #1: Targeted Fund Levy Increasesand decreases <br />259 Implement moderate tax levy increases now for the three funds noted earlier in this report <br />260(Police Vehicle & Equipment Fund; Administration Equipment Fund, Finance Equipment <br />261 Fund). These increases would be partially offset by decreases in the Central Services <br />262 Equipment Fund and the IT Equipment Fund. Part of this strategy is the second year <br />263 implementation of a phased levy support that will be needed in operations to cover 6 firefighter <br />264 positions that are currently covered by a Federal grant for 2021-2023. By implementing the <br />265 increase to shore up needs in these funds, we can smooth out future levy increase impacts. <br />266 Strategy #2: Apply ARPA funds and Excess Cash Reserves <br />267 Apply ARPA funds to finance Water infrastructure projects in 2023 and apply excess <br />268 cash reserves in the Park& Rec Vehicle & Equipment Fund in lieu of a tax levy increase <br />269 in 2023. <br />270 Strategy #3: Utility Rate Adjustments <br />271 For 2023, rates for the water, sanitary sewer, and storm sewer utilities will be adjusted to <br />272 cover some of the planned capital replacements. A specific recommendation will be <br />273 made after the annual utility rate analysis is complete in the fall. Alternative revenue <br />274 sources will need to be identified for the Storm Water infrastructure. <br />275 <br />276 Property Tax Impacts <br />277 Based on the current CIP funding strategies as well as the recommendations identified above, the monthly <br />278 property tax impact on a median-valued single family home is estimated torise from the current $17.67 <br />279 per month to $18.13 per month for CIP costs only. This does not factor in operating or debt levies. This <br />280 is depicted in the chart below <br />281 <br />282 <br />283 <br />284 Based on the CIP, there will be an impact on the 2023 utility rates, however those calculations won’t be <br />285 fully determined until the fall when the annual utility rate analysis is completed. <br />286 P OLICY O BJECTIVE <br />287 The establishment and review of the City’s CIP is consistent with industry-recommended practices as <br />288 well as the City’s Financial Policies. <br />289 F INANCIAL I MPACTS <br />290 See ‘Funding Strategies & Impacts on Homeowners’ section above. <br />Page 12of 13 <br /> <br />