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Annual increases to the Park & Trail Improvements (Fund 425) operating tax levy <br />to replace and upgrade current park and trail system assets. <br />Annual increases to the Pavement Management (Fund 421) operating tax levy to <br />complete street preservation projects to maintain a target street condition rating. <br />Commencement of a debt service tax levy for the 2024/2025 Street <br />Reconstruction Project in 2026. <br />Addition of a debt service tax levy in 2028 for the 2027 Street Reconstruction <br />Project. <br />A pay-as-you-go methodology was applied to the capital needs in the Plan wherever <br />possible. Tax levies were increased to support future capital needs and to minimize <br />issuance of debt in future years. To provide stabilization in the tax rate and utility rates, <br />however, debt was modeled into the plan: <br />Public Works Facility ($27,440,000 issued in 2026) <br />o 20-year obligation at 5.3% interest to be paid back by the Building and <br />Facilities Fund (401), Area & Unit Trunk Fund (406) revenues, and Water & <br />Sewer User Fees. <br />The Building and Facilities Fund (401) is supported by Antenna <br />revenues but is also planned to begin receiving a dedicated Building <br />and Facilities tax levy in 2027. This levy will begin at <br />$50,000 per year annually, in conjunction with the expiration of the <br />2015A - Abatement portion of the debt levy in 2026 and then will <br />increase by $50,000 each year until it reaches $300,000 in 2032. <br />Additionally, this new Building and Facilities levy will assume an <br />additional $318,000 annual debt levy in 2036 when the remainder of <br />the 2015 lease revenue debt levy expires. <br />Otter Lake Road Extension ($8,355,000 issued in 2026) <br />o 15-year obligation at 4.0% interest to be paid back by Area & Unit Trunk <br />Fund (406) for the Utility portion of the project, and a 10-year obligation at <br />4.0% interest to be paid back by Municipal State Aid (420). <br />2027 Street Reconstruction ($4,450,500 issued in 2027) <br />o 15-year obligation at 4.0% interest to be paid back by a debt service tax levy <br />West Side Relief Sewer ($3,891,600 issued in 2027) <br />o 15-year obligation at 4.0% interest to be paid back by Area & Unit Trunk <br />Fund (406) revenues <br />Construction of a new Public Works Facility has been discussed by the City Council for <br />many years, and the Plan includes the project occurring in 2026. The current cost <br />estimate and funding allocation developed by Management do not result in a tax levy <br />impact due to annual revenue sources available for debt service repayment within each <br />funding source and the repurposing of a portion of the 2015A debt levy and the 2015 <br />3 <br />Page 117 of 406