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2010 — 2019 Financial Plan City of Roseville General Pwpose Asset Cash Reserves �, $20 � � $10 � $- $ (10) $ (20) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 � Cash Reserves To prevent this deficit from occurring, the City must; divest some city assets, defer asset replacements, or increase property t�es. If the City chooses to rely solely on increased property t�es; the City's property t� levy will need to increase by 11.9% annually over the next 10 years. This is above and beyond any increase that will be needed to offset operational costs. Again, this is the amount necessary to fully fund all streets, parks and trails, and vehicles and equipment over the next 10 years while preserving the City's Street Infrastructure Replacement Fund at existing levels. All other asset replacement funds will have nominal reserves by 2019. These property t� increases can be somewhat mitigated if the City defers some capital replacements. However, this will likely necessitate greater investment in asset maintenance. It may be prudent to rely on voter-approved bonds to finance the replacement of park system assets in addition to general facilities. Removing these two large categories would reduce the need for a tax levy increase of only 5.3% per year. Financial Im�act Sased on the projections noted above, the following table depicts the annual property t� impact necessary to finance the operational and capital needs for the City's general purpose functions including all streets, parks and trails, and vehicles and equipment: Annual Household Pronertv Tax Bill $ 582 � 645 I 716 I 823 I 965 I 1,128 I 1,303 I 1,478 I 1,653 I 1,828 I$ 2,003 As shown in the above table, over the next 10 years a typical household will incur an average increase of $142 or 24.4% annually on their property tax bill — holding all other factors constant. E:a