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<br />24 items listed in the next fiscal year which will likely be included in the following year’s City Manager <br />25 Recommended Budget. <br />26 <br />27 Although it’s being discussed separately here, it is suggested that the CIP be considered in conjunction <br />28 with the City Council’s budget priorities. This is an important consideration given the strong <br />29 interdependence between the availability of capital assets and program & service outcomes. <br />30 <br />31 For purposes of discussion, the following adjustments to our revenue projections have been <br />32 incorporated for 2025: <br />33 <br />34 Use of Excess Cash Reserve Fund – totals $525,000 <br />35 $200,000 for the Police Vehicle and Equipment fund <br />36 $150,000 for the Public Works Vehicle & Equipment Fund <br />37 $50,000 for the Parks & Rec Vehicle & equipment Fund <br />38 $25,000 for the Streetlight Maintenance fund <br />39 $100,000 for the Pathway & Parking Lot Maintenance fund <br />40 <br />41 Future tax levy increases and/or issuance of debt will be necessary to fund the capital improvement <br />42 needs of the city. The use of the excess cash reserve fund was determined to be the solution for <br />43 funding 2025 capital improvement needs in lieu of tax levy increases. <br />44 <br />45 2025-2044 CIP Summary <br />46 The City’s total asset replacement needs over the next 20 years are $218 million, a decrease of $5.9 <br />47 million or 2.5% from the previous year’s CIP. The CIP is summarized by major City functions in the table <br />48 below. <br />49 <br />50 <br />51 In contrast to the projected CIP spending of $218 million, the City expects to have $187 million available <br />52 over that same time period based on NO increased funding and projected cash reserve levels, leaving a <br />53 projected funding deficit of $30.6 million twenty years from now. It should be noted that this projection, <br />54 as well as those that follow, represents a snapshot in time and is accompanied by a number of <br />55 assumptions. Over time, the projection carries decreasing accuracy. <br />56 <br />57 For both legal and planning purposes, the City has created a number of separate capital replacement <br />58 funds to promote greater transparency and accountability. This necessitates a review of individual funds <br />59 to determine whether they’re financially sustainable. <br />60 <br />61 Analysis of Asset Replacement Funds <br />62 The chart below depicts the 20-year CIP financial activity for all asset replacement funds without <br />63 additional levy. <br />64 <br />Page 2 of 6 <br />Qbhf!35!pg!99 <br /> <br />