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To achieve compliance with these policies, structural changes must be made with regard to how
<br />the City budgets for its core functions. Under the current model, 100% of incoming revenues are
<br />spent in the current budget year. The new budget model must either; 1) allow for an increase in
<br />the property tax levy that is above and beyond what is needed in the current budget year, 2)
<br />reduce programs or services while maintaining current funding levels, or 3) a combination of the
<br />two.
<br />It is recolnlnended that the City aclueve compliance with the newly adopted policies over a 5-
<br />year period. This will require an additional $250,000 (plus adjustments for inflation) each year
<br />for the next 5 years. These monies would be directed to the City's Creneral and Parks &
<br />Recreation Funds which are below recommended levels. For a typical single-family home, this
<br />would translate into an additional $1.10 per month for the next 5 years.
<br />~us~~.flrfl~bfle Asset ~epfl~cemcn>t ~'u~dflng 1D~ech~nIlSnns
<br />As discussed on prior occasions, the City has not been setting aside sufficient funds to replace
<br />City assets at the end of their useful lives. As a result, replacement of solve of the City's assets
<br />has been delayed. Ultimately this will result in higher maintenance costs, and can lead to unsafe
<br />facilities, vehicles, and equipment.
<br />In order to sustain the City's assets, and replace them at the optimal time, a revised
<br />comprehensive asset replacement plan should be adopted. The following table displays the
<br />cuz~rent funding amount along with the reconunended funding amounts over the next 5 years.
<br /> Current 2008 2009 2010 2011 2012
<br />Asset Type Fundin FUlldlll Fundin Fundin.~ Fundin Fundin
<br />Vehicles & Rolling Stoclc $ 340,040 $ 365,040 $ 390,040 $ 415,040 $ 440,040 $ 465,040
<br />General City Facilities 6,000 50,000 100,000 150,000 200,000 250,000
<br />F'arlc Infrastructure 175,000 216,000 257,000 298,000 339,000 380,000
<br />Street Infrastructure 2,000,000 2,000,000 2,000,000 2T000,000 2,000,000 2,000,000
<br />Water Infrastructure 300,000 300,000 300,000 300,000 300,000 300,000
<br />Sanitary Sewer Infi-astructure 175,000 181,000 187,000 193,000 199,000 205,000
<br />Storm Sewer Infrastructure 300,000 306,400 312,800 319,200 325,600 332,000
<br /> $ 3,296,040 $ 3,418,440 $ 3,548,849 $ 3,677,250 $ 3,805,651 $ 3,934,052
<br />Over the next 5 years, total funding will increase from $3.3 million to nearly $4.0 million.
<br />Begiluling in 2013, the Plan should only require inflationary-type increases, with the exception
<br />of the amount for General city facilities, which may require additional funding. These additional
<br />funding needs will impact the property tax levy and utility user charges.
<br />Under this Plan, a typical homeovv~ler will incur an additional $0.55 per month in 2008, $0.55
<br />more in 2009, and so on through 2012 (holding all other factors constant). Of this amount, about
<br />half, or $0.30 per month will be supported by property taxes.
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