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Regular City Council Meeting Monday, April 26, 2010 Page 19 Further discussion included financing options for major capital improvements, such as bond financing and the commitment for paying off those bonds; availa- bility of a more aggressive payment system and refunding than that obligated for the bond terms; and reality of CIP funding gaps. Additional discussion included retirement in 2011 of the $490,000 internal loan from the City's PMP to take advantage of interest savings in paying off a bond is- sue early; realistic goals for an annual allotment for rolling stock replacement while recognizing previous deferrals for those replacements, with Mr. Miller tar- getingbetween $400 - 900,000 as a specific priority for 2011. Mr. Miller suggested a strong vehicle replacement program before adding to the existing fleet; in addition to funding replacement of existing facilities prior to building any new facilities; and to base those decisions on the City Council's and community's priorities and preferred service levels to systematically drive CIP needs and meet those service level goals. Mayor Klausing noted the disconnect between expectations for a high level of service versus the pain of increased property taxes, particularly during an eco- nomic downturn. b. Budgeting and Alternative Revenues and Preliminary Levy Finance Director Miller provided a brief look at non-property tax revenues antic- ipated in 2011, similar to 2010, for tax supported services (i.e., General and Parks & Recreation Funds) for preliminary discussion points on tax levy target levels. Mr. Miller noted the one glaring exception to that forecast was in interest rates, having become stagnant over the last few years, and not anticipated to improve. Mr. Miller noted that challenges will continue during the 2011 budgeting and pri- oritization process for the City's core functions. Councilmember Roe requested that staff keep the City Council aware of the pro- jected residential property valuation from the Ramsey County Assessor's Office when it becomes available, with preliminary residential values estimated to be re- duced by approximately 4.5%. Mr. Miller noted that the City would be decertifying Tax Increment Financing (TIF) District No. 1 in 2011, which had a sizable balance, and which would pro- vide some relief to taxing jurisdictions; however, he anticipated a slight reduction in the City's overall tax base, with limited redevelopment coming on line in 2011, and would require a determination from the City Council on how to appropriate that one-time, approximate $1.25 million. Discussion included actuarial analyses for a new funding base for the Fire Relief Association, with the City Council requesting that staff provide that updated in- formation at their earliest convenience.