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<br />• Funding the replacement of two fire water tenders in 2023 with a ten-year <br />operating levy commencing in 2024. <br /> <br />• Addition of a debt service tax levy for the 2024 Street Reconstruction Project. <br />A pay-as-you-go methodology was applied to the capital needs in the Plan. Tax levies <br />were increased to support future capital needs and to avoid issuance of debt in future <br />years. To provide stabilization in the tax rate and utility rates, however, debt was <br />modeled into the plan as follows: <br />• 2024 Street Reconstruction ($4,400,000 issued in 2024) <br />o 15-year obligation at 3.00% interest to be paid back by a debt service tax <br />levy <br /> <br />• Water Treatment Plant ($21,000,000 issued in 2024) <br />o 25-year obligation at 2.00% interest (assumed PFA funding) to be paid <br />back by Area and Unit Trunk Fund (406) revenues <br /> <br />• Public Works Facility ($9,250,000 issued in 2026) <br />o 20-year obligation at 3.00% interest to be paid back by Antenna Lease <br />Revenues within the Building and Facilities Fund (401), Area and Unit <br />Trunk Fund (406) revenues, and Water & Sewer User Fees <br /> <br />• 2027 Street Reconstruction ($4,300,000 issued in 2027) <br />o 15-year obligation at 3.00% interest to be paid back by a debt service tax <br />levy <br />Construction of a new Public Works Facility has been discussed by the City Council for <br />many years and this Plan includes the project in 2026. Dollars are requested in 2023 <br />from Building and Facilities Fund reserves for initial project development and feasibility <br />studies. The current cost estimate and funding allocation developed by Management do <br />not result in a tax levy impact due to annual revenue sources available for debt service <br />repayment within each funding source. If the City wishes to move forward with this <br />project the cost estimate and funding allocation, along with if the tax levy is impacted, <br />will need to continue to be refined. <br />Plans and specifications for a Water Treatment Plant were authorized by City Council in <br />August 2022. The Plan currently schedules that project in 2024. Financing will need to <br />be obtained once final timelines and cost estimates are known. The debt obligation is <br />presumed to be paid back entirely from water user and trunk fees with no impact to the <br />tax levy. <br /> <br /> <br />4