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2010 — 203 9 Financial Plan Property taxes are needed ta increase at a iaster rate for the Parks & Recreation activities because it Iacks� any substantive cash reserves to bu��'fer cost increases. Cash reser��es held in the general purpase funds are expected to generate an investment return of 5% anri�ally wll�ch can be used to partially offset operational costs. Addiiional praperty tax increases will be needed to offset general purpase capital investment needs. These increases are discussed [n greater detail below. Based 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 follawing chart: City of Ro�eville Cash Resen�es Genee°al Puirpose �'uncl� $5 ____._._.___._.�. � _.___.$4 � �� __�___�._ o$4 - __ _ .. - _- � $3 — ------- -- ^ _ - - _. — ---- � $� _ _ --- -- -- _ _ ----- _ _ _ _ _ _ _ $1 _ _ _ _ __ ----- __ $- O0� O�o O�� 0��, O�"� O�D� O�� O�� 0.�� O��o O�of `�r `-l� `-lr `�r `�L `1� `� `�1� `-1� rL `-1,+ ; �—Cash reserves'. �— --- — ---- — Capital Investments The 2009-2018 CIP 'tdentiiied app�oximately $73.4 million in general purpose asset replacemenf needs including the replacement aF buildings, stree�s, parks and trails, and vehicIes and equiprnent. By contrast, using the current fundiilg sources af property taxes, MSA monies, and interest earnings on the City's St�eet Infrastructure Replacement Fund, only $34.7 rnillion of available monies were idenEified, leaving a funding �ap of $38.7 million over the nexi 10 years. If existing reserves in the City's general purpose asset replacement funds are alsa applied, t�e fiinding gap drops to $29.9 inil�ion ov�r the next I O years. Based on the asset replacement schedules identified in the CIP, the City will exhaust iis ciedicated asset replacernent iunds for its general purpose operations by 201 �. This is depicted in the following chart. 7