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7 <br /> <br />• Infrastructure – Summaries for Streets, Water, Sewer & Stormwater <br />• Infrastructure – Details for Streets, Water, Sewer & Stormwater <br /> <br /> <br />Vehicle Replacement Fund <br /> <br />The Vehicle Fund is the only capital fund whose purchases are split across departments, and as <br />such it seemed appropriate to bring some attention to it separately. <br /> <br />The city has been contributing to the fund regularly since 2019. As we’ve built out the CIP to a <br />10-year plan, it is clear that those funding levels need to increase. The projected Tax Levy is <br />shown with a starting amount of $400K in 2025 and increasing $50K per year until 2031 and <br />then holding steady. An interfund loan is planned for 2027 to be repaid over a 5-year period to <br />address a shortage in the fund that year. These projected revenues allow for this portion of the <br />CIP to be fully funded for the next 10 years. <br /> <br />Attached Reports – <br />• Vehicle Fund (410) – Funding Sources & Uses <br /> <br /> <br /> <br />FUTURE CHANGES <br /> <br />This CIP is reviewed annually and adjusted as necessary. As mentioned, the City just moved <br />from a simplistic 5-year CIP to a more comprehensive 10-year CIP in 2024. The software we <br />utilize for maintaining the CIP has provided new budgeting tools. And staff is working to more <br />thoroughly inventory and plan for maintenance of our existing assets as well as plan for new <br />investments to enhance the quality of life of the community. As such, this CIP will continue to <br />grow and each year we will have a better understanding of the long-term capital needs of the <br />City of Lake Elmo. <br /> <br />Alongside planning for expenditures, of course, is the need to plan for the revenue to fund these <br />projects. As mentioned earlier, the city will be implementing a separate capital levy in 2025 to <br />more transparently illustrate how taxes are levied for these capital projects, and to grow available <br />cash with the goal of decreasing debt load over time. Utility Rates are reviewed each year with <br />the utility projects herein having a significant effect on the rates needed to maintain revenue <br />sufficiency in those funds. And, finally, the City is in the process of implementing Utility <br />Franchise Fees on local utility companies to allocate toward capital needs.