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20I0 — 20t9 Financial Plan �xecutive Summary Enclosed is the 2010-2019 Financiai Plan as prepared in accordance with the goals and straCegies identif ed in the In�agirle Rose�i�le 2025 initiative and in cansideration of the polictes, goals and objectives� id�nti��ed by tl7e CiCy Council. Y,ike �he Capiial Improvernent Plan (CIP}, the Financial Plan should not be constr�ted as a request for funding; rather it is designed to serve as a planning tool that can be used to mak� informed financial decisions. The Financial Plan is segregaied into two portians; operations and capital investments. While both partions are crucial for rnaintaining services, the potential for alternaEive funding sources ai�c� the fle�ibility in r�aking operational ad,�tiistments can vary signi�cantly for eaeh. The�refore they are laoked at separately for fiinancial plannii�g pti�rposes. In addition, the Financial Plan makes the distinction between general-purpose aperations that are used to pravide police, fire, streets, and parks & recreation, and are typically funded by property taxes; and �nterprise or business-type operations that are used to provide for water, sewer, storm, and golf course operations which are typically func�ed by user fees. Each of these separate categories is discussed in great�r detail belaw. If current operational trends continue and if the City makes all planned capi�al �-eplacemeE�ts over the next 10 years, it will create a sizeable impact on RoseviTle property o��ners. In order to mainta�n programs and s�rvices a� eXis�ing l��el� and to replace infrastructure at �he optimal time, property iax levies will need to inerease by 17% per y�ar �or the next 10 }�ears. Water and Sewer rates ��vill need to increase by 10% per year during. this saine p�riod. Und.er this scenario, a typical single-family home r�ill see their cornbined City property tax and uCility bill increase from $1,101 in 2009 ta $3,018 in 20l 9, an increase of $192 per year. Thes� im.pacts car� be lessened if the City chooses to eliminate progran�s, reduce service leveis, or delay capital. i-eplacements. With these projections, Roseville would no longer be among t��e lorvest taxed cities in the Twin Cities Ivletropolitan Area. It is es�imated that Rosevill� will go from l�aving thE 7`h �owest taxes oLit of 60 comparative ciCies, ta having the 25th to 30`�' Iowest. This would place Rosevill� n�ar the medi�n t�ation l�vel, For camparison purposes, the cities currently near the median include: Bloomington, St. Louis �ark, Burnsville, Ner�v Brightan, and Mounds View. The impacts taoted above can also �e portrayec� as a percenta�e of household ine�otne. Based on t1�e projections abo�e, it� is estimat�d that �ach hous�hold �vil1 pay 2.0-2.5% of their income to the City for property taxes and their uti�lity bilI in 2019. By comp�axison, Roseville households paid 1.5% af thei.r income in 2002 and an estimated L3% in 20d9. More detailecf inforination is presented below. 2