08-12-2024 - Council Meeting Agenda Packet (2)

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Capital Fire Water Tender Replacement In September 2022, the Council approved a contract with Custom Fire for the purchase of two water tenders at a total cost of $2,262,000. The funding was provided through an interfund loan to be paid back with a tax levy over 10 years. In December 2023, Public Safety Aid in the amount of $229,294 was used to buy down the interfund loan and decrease the annual payment/tax levy. The levy commenced in 2024 and will go through taxes payable 2033. Street Maintenance The Street Maintenance Levy has increased $148,500 or 15.00%. The $1,138,500 levy will be used in combination with $120,000 from the Water Fund to complete a street preservation project in line with the City's Pavement Management Plan. The 2023 Pavement Management Plan recommended increased funding to maintain a target street condition rating of 73. Historical street maintenance funding is as follows: • $661,500 in 2020 (5.00% annual increase) • $711,113 in 2021 (7.50% annual increase) • $782,224 in 2022 (10.00% annual increase) • $860,446 in 2023 (10.00% annual increase) • $990,000 in 2024 (15.00% annual increase) A decline in the street condition rating is predicted in future years with an increase less than 15.00%. Debt Levy The significant change to the debt levy is the addition for the 2024 Street Reconstruction of Colonial Woods and Pine Haven. Bonds are anticipated to be sold in late 2024 for construction in 2025. REQUESTED COUNCIL DIRECTION Staff is prepared to discuss the 2025 Annual Budget and 2025-2029 Financial Plan with the City Council at the following budget work sessions: August 12, 2024: Tax Levy, 2025 Capital, General Fund Budget August 26, 2024: Rookery Activity Center and Enterprise Fund Budgets Budget work sessions may be scheduled at the discretion of the Council to achieve the desired budget level for 2025. Council action is requested by the September 23rd meeting