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is available at the following link - <br />https://www.lakeelmo.gov/AgendaCenter/ViewFile/Item/351?fileID=2764) <br />o The 2026–2035 CIP funding sources for infrastructure will be revised before the December <br />Council meeting to align with Street CIP Scenario 2 in the current CIP packet, pending <br />Council direction. All final funding decisions are made at the time of the project. <br />Vehicle and Equipment Replacement Policy <br />o Currently applies to Public Works, with Fire and Building Departments following similar <br />practices. <br />o The policy will be revised to formally include Fire Dept and Building Dept assets for <br />consistent lifecycle management and replacement scheduling. <br />Pavement Management Plan and Street CIP <br />o The City maintains a Pavement Management Plan and Street Capital Improvement Program <br />(CIP) to guide infrastructure investment. The most recent version was adopted by Council in <br />July 2026. <br />o The Special Assessment Policy assigns 30% of residential street costs (and other streets as <br />appropriate) to benefiting properties. <br />o Stormwater-related improvements within Street Projects are not currently billed to the <br />stormwater fund. (This practice is not recommended to be part of this planning effort due to <br />the complexity of doing so. Should Council wish to move in that direction, we can review the <br />steps to do so and the impacts on the Stormwater Fund and necessary fee increases while <br />updating the Utility Fund Plan and then revisit at a later date.) <br />2026 Budgets <br />o The 2026 Budget will be adopted at the December City Council meeting. We will then use <br />those numbers to build out future operations budgets. <br />2025-2026 Strategic Plan <br />o The Strategic Plan was drafted following a workshop in January 2025 and adopted in February <br />2025. While the Strategic Financial Plan will not be complete until mid-2026, our assumption <br />is that the wider Strategic Plan will continue in a similar format beyond 2026, so we should <br />use those goals and priorities when creating this document. <br />Other Policies <br />o Fund Balance Policy – Our General Fund balance has been safely above the policy minimum <br />for a few years. Moving forward, we will strategically decrease that balance closer to the <br />minimums by shifting funds to the funds where they are most necessary. <br />o The city has a number of other financial policies, such as purchasing, investment, and credit <br />card policies, but they do not significantly impact our projections. <br />2. Staffing, Service Levels, and Organizational Capacity <br />The City will incorporate key findings and policy considerations related to staffing and operations: <br />Compensation Plan <br />Union Contract provisions <br />Findings from the 2025 Raftelis Public Works Staffing Study <br />Findings from the 2022 Matrix Consulting – Operational Audit of the Administration and Finance <br />Departments <br />Department Heads will provide input regarding future departmental needs and directions based on <br />service demand projections and operational priorities. <br />3. Future Major City Projects and Capital Scenarios: <br />Sports Complex (77 acres) <br />o Preliminary scenario planning will include the Sports Complex currently under discussion. <br />o Costs remain unknown at this stage; early models will use rough estimates. <br />o Should Scenario look at incremental improvements (cash) or a full build-out approach (debt)? <br />Future Fire Station 2 <br />180 Acres Improvements prior to property sale? <br />4. Development and Revenue Projections