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<br />�� Compliance with Council-Adopted Fiscal and Budget Policies
<br />�1� Earlier this year, the City Council adopted a number of fiscal and budget policies. At the time, it
<br />5� was noted that the City had not fully adhered to these policies in the past. The 2008
<br />5] Recommended Budget begins a 5-year plan to achieve full compliance. This includes not only
<br />��. the recommendation for a structurally balanced budget, but also added emphasis on
<br />�;� strengthening the City's cash reserves in the City's core operating funds.
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<br />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 recommended that the City achieve 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 General and �'arl�s &
<br />Recreation Funds which are below recommended levels. For a typical single-family home, this
<br />would translate into an additional $1.10 per month for the next 5 years.
<br />�� Sustainable Asset Replacement Funding Mechanisms
<br />�r� As discussed on prior occasions, the City has r��� been setting aside sufficient funds to replace
<br />�l� City assets at the end of their useful lives. As a result, replacement of some of the City's assets
<br />�] has been delayed. Ultimately this will result in higher maintenance costs, and can lead to unsafe
<br />� facilities, vehicles, and equipment.
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<br />�a In order to sustain the City's assets, and replace them at the optimal time, a revised
<br />�� comprehensive asset replacement plan should be adopted. The following table displays the
<br />7� current funding amount along with the recommended funding amounts over the next 5 years.
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<br />Asset TJ YI�'
<br />Vehicles & Rolling Stock
<br />General City Facilities
<br />Park Infrastructure
<br />Street Infrastructure
<br />Water �nfrast��ct�zre
<br />Sanitaw Sewer Infrastructure
<br />current
<br />Ftind ;i�
<br />� 340,040
<br />6,000
<br />175,000
<br />2,000,000
<br />300,000
<br />175,000
<br />2008
<br />1'unt�; r�
<br />� 365,040
<br />50,000
<br />216,000
<br />2,000,000
<br />300,000
<br />181.000
<br />2009
<br />Fui7d:n�
<br />$ 390,040
<br />100,000
<br />257,000
<br />2,000,000
<br />300,000
<br />187.000
<br />2010
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<br />$ 415,040
<br />150,000
<br />298,000
<br />2,000,000
<br />300,000
<br />193.000
<br />2olt
<br />Fw7d:r,�
<br />$ 440,040
<br />200,000
<br />339,000
<br />2,000,000
<br />300,000
<br />199.000
<br />2012
<br />Flzrid�sig
<br />� 465,040
<br />250,000
<br />380,000
<br />2,000,000
<br />300,000
<br />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
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<br />80
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<br />Over the next 5 years, total funding will increase from $3.3 million to nearly $4.0 million.
<br />Beginning 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 />84 Under this Plan, a typical homeowner will incur an additional $0.55 per month in 2008, $0.55
<br />85 more in 2009, and so on through 2012 (holding all other factors constant). Of this amount, about
<br />86 half, or $0.30 per month will be supported by property taxes.
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