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Capital Equipment Replacement Fund presented within the draft 2025-2029 Financial <br />Plan. <br />Capital Fire Water Tender Replacement <br />In September 2022, the Council approved a contract with Custom Fire for the purchase <br />of two water tenders at a total cost of $2,262,000. The funding was provided through an <br />interfund loan to be paid back with a tax levy over 10 years. <br />In December 2023, Public Safety Aid in the amount of $229,294 was used to buy down <br />the interfund loan and decrease the annual payment/tax levy. The levy commenced in <br />2024 and will go through taxes payable 2033. <br />Street Maintenance <br />The Street Maintenance Levy has increased $148,500 or 15.00%. The $1,138,500 levy <br />will be used in combination with $120,000 from the Water Fund to complete a street <br />preservation project in line with the City's Pavement Management Plan. <br />The 2023 Pavement Management Plan recommended increased funding to maintain a <br />target street condition rating of 73. Historical street maintenance funding is as follows: <br />• $661,500 in 2020 (5.00% annual increase) <br />• $711,113 in 2021 (7.50% annual increase) <br />• $782,224 in 2022 (10.00% annual increase) <br />• $860,446 in 2023 (10.00% annual increase) <br />• $990,000 in 2024 (15.00% annual increase) <br />A decline in the street condition rating is predicted in future years with an increase less <br />than 15.00%. <br />Debt Levy <br />The significant change to the debt levy is the addition for the 2024 Street <br />Reconstruction of Colonial Woods and Pine Haven. Bonds are anticipated to be sold in <br />late 2024 for construction in 2025. <br />The Finance Director stated that Council action is requested by the September 23rd <br />meeting in order to set the preliminary tax levy and schedule a public hearing date. The <br />preliminary levy set at the September meeting may not be increased thereafter but may <br />be lowered before approving the final budget and levy in December. <br />Council Discussion <br />The City Council reviewed the draft 2025 Preliminary Budget and 2025-2029 Financial <br />Plan. They provided direction to the Finance Director regarding the proposed budget for <br />inclusion in future discussions and to prepare for the September 23rd Preliminary Budget <br />and Levy Adoption, <br />Page 3 of 4 <br />