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2010 — 2019 Financial Plan Property t�es are needed to increase at a faster rate for the Parks & Recreation activities because it lacks any substantive cash reserves to buffer cost increases. Cash reserves held in the general purpose funds are expected to generate an investment return of 5% annually which can be used to partially offset operational costs. Additional property tax increases will be needed to offset general purpose capital investment needs. These increases are discussed in greater detail below. Sased on the projected cost increases and added revenues, the cash reserve levels for operations in the City's general purpose functions are depicted in the following chart: �, $ 5 o $4 .� � $3 � $2 $1 $- City of Roseville Cash Reserves Ge ne ral Pwpos e Funds $4 $4 O°� '�� '�'� '��' '�"� '�Os '�h '��° '�`� '�q' '�°� �O �O �O �O �O �O �O �O �O �O �O � Cash reserves Ca�ital Investments The 2009-2018 CIP identified approximately $73.4 million in general purpose asset replacement needs including the replacement of buildings, streets, parks and trails, and vehicles and equipment. Sy contrast, using the current funding sources of property t�es, MSA monies, and interest earnings on the City's Street Infrastructure Replacement Fund, only $34.7 million of available monies were identified, leaving a funding gap of $38.7 million over the next 10 years. If existing reserves in the City's general purpose asset replacement funds are also applied, the funding gap drops to $29.9 million over the next 10 years. Sased on the asset replacement schedules identified in the CIP, the City will exhaust its dedicated asset replacement funds for its general purpose operations by 2013. This is depicted in the following chart.