1. Debt Levy. 2. Capital Investment Plan

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1 To: Honorable Mayor and City Council From: Shane Fineran, City Administrator Date: August 11th, 2015 Re: Budget Work Session #1 As we enter the work session schedule for the formulation of the 2016 budget, we await some critical bits of information from the State and County. To date we have yet to receive the 2016 Local Government Aid calculations, nor the 2016 Estimated Market Value, Taxable Market Value, or Fiscal Disparities data from Carver County. We anticipate having all of this information by mid-august and prior to our next work session. These pieces of data are critical components of the City s Long Range Financial Planning document and help to demonstrate the overall levy impact within the community. 1. Debt Levy One component that is part of the overall levy impact on the community is the City s special debt levy. These are the property tax supported obligations we levy to meet our annual debt obligations. A significant change to the upcoming budget for 2016, and subsequent impact on the overall levy, is the City s special debt levy. Between 2014 and 2015 the City experienced a one-time dip in obligations related to debt with the retirement of some old debt, current debt structures, and the bond sale related to the 2015 Road Construction bonds used for the City s portion of the CSAH 10 project. The City did move some of the debt savings into the general levy to help fund capital needs within fire and park fund areas. The increase in the special debt levy from 2015 to 2016 is approximately $128,000. The City works closely with its municipal financial advisor to identify opportunities for restructuring or interest saving moves to the City s debt schedule. Currently at this time those opportunities do not exist. By year 2022 the City begins to experience a steady decrease in debt obligations as those obligations begin to retire. At this time it is the recommendation of CIP Committee to show those balances being used to provide additional support to the capital investment plan. A baseline of $550,000 was used in future years to determine the additional resources available for this support. 2. Capital Investment Plan This year saw the implementation of a Capital Investment Committee. The committee of two council members and staff have worked over the past months reviewing recommended capital investments for the community, funding strategies, and condition of identified needs. Highlights of this last year include the development of a pavement maintenance staging plan to include seal coat operations, and anticipated mill and overlay needs. These important maintenance items add life to street infrastructure and reduce costs to the tax payer over time. The plan presented, if funded adequately, provides the City with ample cash reserves to meet the capital investment needs solidly of the organization for 3-5 years. As we approach years 3 to 5 within the plan some areas show a deficit of funding based upon the identified need. It is not of the plan to determine concrete funding solutions that far in the future, but rather provide a road map for the organization as it works to identify and shift resources to attempt to meet those needs. Future available resource estimates also include

2 Municipal State Aid funds as we reach 5,000 in population. A policy question for the Council to discuss is should the City identify future bond proceeds as a means to fill the gap in available funds to show the plan fully funded? The plan presented also is a break from past practice in how assets are managed. It is the recommendation that asset replacement be more thoughtful and planned, as reflected in the plan. Past practice for asset replacement was a run it til it dies mentality. This practice offers no return on investment, places a strain on equipment and leads to higher maintenance costs, decreased efficiency due to equipment downtime, and rental expense. The plan recommends a replacement schedul based upon industry averages for expected useful life, maintenance capabilities within the organization, and operational conditions experienced in our community. Enclosed is a draft policy document that is being recommended to be put into practice as we near the identified replacements of various vehicles and equipment assets. By going through this evaluation process we seek to better identify deficiencies within the fleet, reduce capital acquisition costs, provide a greater return on initial investments, provide a more visible application of fiscal responsibility, and ensures vehicle and equipment specifications match current job requirements. Page 2

3 Current Special Debt Levies 2004 Refunding Bond Fund $ 55,000 $ 31,108 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Street Fund $ 50,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Less: $ - $ - $ - $ - $ - $ Street Fund $ 110,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Refunding Bond Fund $ 103,409 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Road Fund $ 103,362 $ 107,352 $ 110,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ 120,000 $ - $ - $ Downtown Fund $ 47,865 $ 46,850 $ 48,066 $ 46,680 $ 45,042 $ 48,324 $ 46,276 $ 49,216 $ 46,644 $ - $ - $ Improvement Fund $ 35,559 $ 33,210 $ 65,000 $ 85,000 $ 105,000 $ 125,000 $ 145,000 $ 165,000 $ 185,000 $ - $ - $ Equipment Certificates $ - $ 34,811 $ 32,942 $ 33,296 $ 32,587 $ 21,202 $ - $ - $ - $ - $ - $ Refunding Bond Fund $ 127,762 $ 121,191 $ 121,119 $ 125,000 $ 135,000 $ 105,000 $ 98,175 $ 77,744 $ - $ - $ - $ Bridge Project Fund $ - $ - $ 125,564 $ 119,322 $ 118,401 $ 117,479 $ 116,114 $ 119,999 $ 118,529 $ 112,885 $ 111,205 $ 114,525 Total Debt $ 632,957 $ 374,522 $ 502,691 $ 528,377 $ 556,030 $ 537,005 $ 525,565 $ 531,959 $ 470,173 $ 112,885 $ 111,205 $ 114,525

4 Revenues 2 Transfer from General Fund (LGA & Ad Valorem Taxes) $ 492,666 $ 365,000 $ 365,000 $ 365,000 $ 365,000 $ 365,000 $ 365,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 $ 525,000 3 Transfer from Fire Operating (General Fund & Contract Rates) $ 200,000 $ 245,000 $ 245,000 $ 245,000 $ 245,000 $ 265,000 $ 363,000 $ 361,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 680,000 $ 245,000 $ 245,000 $ 245,000 $ 245,000 4 Transfer from Water Fund $ 112,000 $ 55,000 $ 51,000 $ 141,300 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 5 Transfer from Sewer Fund $ - $ 190,000 $ 210,000 $ 132,500 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 6 Transfer from Storm Water Fund $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 7 Transfer in from other source (Bonds, Grants) $ - $ 100,000 8 Transfer in from EDA Levy $ - 9 Total Contributions $ 834,666 $ 885,000 $ 1,001,000 $ 913,800 $ 960,000 $ 980,000 $ 1,078,000 $ 1,236,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,120,000 $ 1,120,000 $ 1,120,000 $ 1,120,000 Useful Life Acquisition Year Cost Capital Improvements Fund 12 Projected Fund Balance-Jan 1st $ 208,584 $ 315,250 $ 98,250 $ 49,250 $ (1,750) $ (42,750) $ (103,750) $ 250 $ 249,250 $ 473,250 $ 673,250 $ 811,250 $ 1,039,250 $ 1,292,250 $ 1,520,250 $ 1,747,250 $ 1,936,250 $ 2,092,750 $ 2,289,250 $ 2,508,250 $ 2,658, Projected Fund Revenue $ 427,666 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460,000 $ 460, Projected Year End Balance $ 315,250 $ 98,250 $ 49,250 $ (1,750) $ (42,750) $ (103,750) $ 250 $ 249,250 $ 473,250 $ 673,250 $ 811,250 $ 1,039,250 $ 1,292,250 $ 1,520,250 $ 1,747,250 $ 1,936,250 $ 2,092,750 $ 2,289,250 $ 2,508,250 $ 2,658,250 $ 2,736, Items 17 Ford Tandem Dump Truck $ 75,000 $ 75,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Sterling Dump Truck $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Sterling Dump Truck $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Caterpillar Loader $ 150,000 $ 50,000 $ 50,000 $ 50, Kubota Tractor $ 55,000 $ 15, Chevy 1-Ton Dump $ 45,000 $ 45,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Chevy $ 40,000 $ 35, Chevy $ 40,000 $ 35, John Deere 5400 Tractor $ 60,000 $ 20,000 $ 20,000 $ 20, Kubota 1100 RTV w/plow $ 20, Toro 3200 D Mower/Blower $ 45,000 $ 15,000 $ 15, ' Mower for Tractor $ 14,000 $ 8,000 $ 8,000 $ 6,000 $ 6,000 $ 6, City Hall Door Replacement City Hall HVAC System Replacement $ 75,000 $ 75, City Hall Conference Room Furniture $ 6,000 $ 6, City Hall Meeting Room Carpeting $ 15,000 $ 15,000 $ 5,000 $ 5, City Hall Office Painting $ 5,000 $ 5, Community Center Painting $ 15,000 $ 15, City Hall Fascade Painting $ 5,000 $ 5,000 $ 5, City Hall Sidewalk $ 15,000 $ 15,000 $ 5,000 $ 5, S. Lewis Ave Sidewalk Community Center Partition Replacement $ 35,000 $ 15,000 $ 20, PS Garage Door Replacement - Building $ 30,000 $ 30, PS Garage Door Replacement - Building $ 30,000 $ 30, PS Garage Door Replacement - Building $ 30, PS Office Furniture $ 5,000 $ 5, PS Vehicle Lifts $ 6,000 $ 6, PS Lot Asphalt $ 100,000 $ 20,000 $ 20,000 $ 20,000 $ 40, PS Salt Shed $ 50, PS Furnace (Office Area) $ 5,000 $ 5, PS Air Conditioner (Office Area) $ 3,000 $ 3, Seal Coat/Crack Sealing 7 Annual $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80, Street Mill & Overlay 20 Annual $ 160,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91,000 $ 91, Highland Park Playground $ 50,000 $ 50, Highland Park Dugouts $ 40, Madison Green Playground $ 75, Ann Street Playground $ 35,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Sugarbush Playground $ 50, Melroe Bobcat Skidsteer $ 35,000 $ 15,000 $ 15, Skidder Snowblower $ 6,000 $ 6,000 $ 6, Skidder Broom $ 4,000 $ 4,000 $ 4, Skidder Snow Bucket $ 2,000 $ 2,000 $ 2, Skidder Leveling Bar $ 2, Trailer $ 5,000 $ 2,500 $ 2, Generator $ 15, Paint Sprayer/Striper $ 8,000 $ 8,000 $ 4,000 $ 4,000 $ 4,000 $ 4, Compressor $ 20,000 $ 5,000 $ 5,000 $ 5, Korayvac Heater Building 1, 2, $ 9,000 $ 9, Capital Improvements Acquisitions Total $ 321,000 $ 517,000 $ 349,000 $ 351,000 $ 341,000 $ 361,000 $ 196,000 $ 211,000 $ 236,000 $ 260,000 $ 322,000 $ 232,000 $ 207,000 $ 232,000 $ 233,000 $ 271,000 $ 303,500 $ 263,500 $ 241,000 $ 310,000 $ 382, Fire Capital Improvements Fund 70 Projected Fund Balance-Jan. 1st $ 430, $ 227, $ 80, $ 103, $ (63,020.00) $ (169,320.00) $ (194,520.00) $ (113,720.00) $ (74,920.00) $ 458, $ 1,006, $ 1,569, $ 2,108, $ 2,711, $ 3,373, $ 3,997, $ 4,501, $ 4,993, $ 4,904, $ 4,879, $ 4,866, Projected Fund Inflows $ 200, $ 245, $ 245, $ 245, $ 245, $ 265, $ 363, $ 361, $ 680, $ 680, $ 680, $ 680, $ 680, $ 680, $ 680, $ 680, $ 680, $ 245, $ 245, $ 245, $ 245, Projected end of the year balance $ 227, $ 80, $ 103, $ (63,020.00) $ (169,320.00) $ (194,520.00) $ (113,720.00) $ (74,920.00) $ 458, $ 1,006, $ 1,569, $ 2,108, $ 2,711, $ 3,373, $ 3,997, $ 4,501, $ 4,993, $ 4,904, $ 4,879, $ 4,866, $ 4,898, Items 75 Ford Engine - E $ 492,500 $ 171,250 $ 171,250 $ 150,000 $ 100,000 $ 100,000 $ 100, Ford Grass - G $ 80,000 $ 16,000 $ 16,000 $ 16,000 $ 16,000 $ 16, Zodiac Boat $ 15,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3, ALF Ladder - L $ 850,000 $ 170,000 $ 170,000 $ 170,000 $ 170,000 $ 170, INT Tanker - T $ 300,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Command Rig $ 60,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Spartan Engine - E $ 600,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50, GMC Rescue - R $ 80,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000

5 83 Spartan Rescue - R $ 700,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70,000 $ 70, Polaris ATV $ 5, Carpet Floor $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2, Carpet Floor $ 5,000 $ 2,500 $ 2, Washer $ 5,000 $ 1,000 $ 2,500 $ 1, Dryer $ 5,000 $ 1,000 $ 2,500 $ 1, Interior Painting $ 21,500 $ 10,750 $ 5,375 $ 5,375 $ 1, Cascade System $ 50,000 $ 30, Station Air Compressor $ 5,000 $ 1,250 $ 1,250 $ 2,500 $ 2,500 $ 2, Roof Top Air Conditioner # $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,500 $ 2,500 $ 2,500 $ 2, Roof Top Air Conditioner # $ 5,000 $ 5,000 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2, Overhead Door Replacement $ 90,000 $ 22,500 $ 22,500 $ 22,500 $ 22,500 $ 22,500 $ 22, Air Packs $ 125,000 $ 50, Air Bottles $ 60,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Extrication Tool # $ 75,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Extrication Tool # $ 50, Extrication Tool # $ 60,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Heartstart $ 6,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3, Autopulse $ 50, Mobile Radios $ 50, Portable Radios $ 120,000 $ 20, Pagers $ 24,000 $ 4,800 $ 4,800 $ 4,800 $ 4,800 $ 4,800 $ 6,000 $ 6,000 $ 6,000 $ 6, Thermal Imaging Camera # $ 12,000 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2, Thermal Imaging Camera # $ 15,000 $ 3,000 $ 3,000 $ 3,000 $ 3,000 $ 3, Station Roof $ 30, Station Brick Sealing Floor Scrubber $ 15, Office Furniture $ 20,000 $ 5, Fire Capital Acquisitions Total $ 403,750 $ 391,875 $ 221,875 $ 411,300 $ 351,300 $ 290,200 $ 282,200 $ 322,200 $ 146,900 $ 131,900 $ 117,000 $ 140,500 $ 77,500 $ 17,500 $ 56,000 $ 176,000 $ 188,500 $ 333,500 $ 270,000 $ 258,000 $ 213, Utilities Capital Fund 116 Projected Fund Balance-Jan. 1st 0 $ 13,500 $ 149,000 $ 180,000 $ 117,800 $ 289,400 $ (1,159,000) $ (1,412,400) $ (1,591,800) $ (1,766,200) $ (1,873,200) $ (2,030,200) $ (2,685,200) $ (2,890,200) $ (3,130,200) $ (3,339,200) $ (3,552,200) $ (3,656,200) $ (3,815,200) $ (3,974,200) $ (4,118,200) 117 Projected Fund Inflows $ 142,000 $ 275,000 $ 291,000 $ 303,800 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350,000 $ 350, Projected end of the year balance $ 13,500 $ 149,000 $ 180,000 $ 117,800 $ 289,400 $ (1,159,000) $ (1,412,400) $ (1,591,800) $ (1,766,200) $ (1,873,200) $ (2,030,200) $ (2,685,200) $ (2,890,200) $ (3,130,200) $ (3,339,200) $ (3,552,200) $ (3,656,200) $ (3,815,200) $ (3,974,200) $ (4,118,200) $ (4,258,200) Items 121 Sterling Jet Vac $ 350,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Televising Camera $ 75,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15, Elgin Sweeper $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50, Chevy 1/2-Ton $ 30,000 $ 15,000 $ 15, Chevy 3/4-Ton $ 35,000 $ 15,000 $ 20, Kubota 900 RTV $ 20,000 $ 20, Water Plant Brick Seal $ 15, Water Plant Interior Paint $ 8,000 $ 2,000 $ 2,000 $ 2,000 $ 2, Well #1 Pump Replacement $ 20,000 $ 20,000 $ 5, WWTF Air Conditioner $ 12,000 $ 12,000 $ 4,000 $ 4,000 $ 4, WWTF Bar Screen $ 150, WWTF Digester $ 100,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20, WWTF Asphalt Apron $ 20,000 $ 20, WWTF VFDs $ 4,000 $ 4,000 $ 4, WWTF Door Replacement $ 15, WWTF SCADA System $ 150,000 $ 50,000 $ 50, Water Plant Door Replacement $ 24,000 $ 6,000 $ 6,000 $ 6,000 $ 6, Geo Tubes $ 12,000 $ 12,000 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 4,000 $ 4,000 $ 4, Generator - Sugarbush $ 15,000 $ 2,500 $ 2,500 $ 5,000 $ 5, WWTF Expansion 20 TBD $ 5,000, LS 5 Upgrade & Forcemain $ 300, LS 1 Uprade $ 300, Water Tower $ 1,200,000 $ 1,200, " Watermain (Mill from State to Terrace) $ 250,000 $ 500,000 $ 50,000 $ 50,000 $ 50,000 $ 50, " Watermain (Lewis north of State) $ 150,000 $ 50,000 $ 50,000 $ 50, WTF Expansion/New $ 8,000,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400,000 $ 400, Well #5 Construction $ 500, Storm Pond Dredging & Landfill Annual $ 120,000 $ 50,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20, Utilities for Street Mill & Overlay Annual $ 50,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35,000 $ 35, Utility Capital Acquisitions Total $ 128,500 $ 139,500 $ 260,000 $ 366,000 $ 178,400 $ 1,798,400 $ 603,400 $ 529,400 $ 524,400 $ 457,000 $ 507,000 $ 1,005,000 $ 555,000 $ 590,000 $ 559,000 $ 563,000 $ 454,000 $ 509,000 $ 509,000 $ 494,000 $ 490, Park Fund (New Development & Acquisitions) 155 Projected Fund Balance-Jan. 1st $ 281,692 $ 293,692 $ 307,692 $ 236,692 $ 31,692 $ (198,308) $ (183,308) $ (283,308) $ (218,308) $ (153,308) $ (88,308) $ (43,308) $ (53,308) $ 11,692 $ 76,692 $ 141,692 $ 206,692 $ 271,692 $ 336,692 $ 401,692 $ 466, Projected Fund Inflows $ 65,000 $ 65,000 $ 165,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65, Projected end of the year balance $ 293,692 $ 307,692 $ 236,692 $ 31,692 $ (198,308) $ (183,308) $ (283,308) $ (218,308) $ (153,308) $ (88,308) $ (43,308) $ (53,308) $ 11,692 $ 76,692 $ 141,692 $ 206,692 $ 271,692 $ 336,692 $ 401,692 $ 466,692 $ 531, Items 160 Madison Green Acquisition 2014 $ 100,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20, Kings Highland Parking $ 12,000 $ 6,000 $ 6, Trail & Parking Lot-Community Park $ 200,000 $ 200, Sports Court-Community Park $ 110,000 $ 110,000 $ 75,000 $ 75, Park Shelter-Community Park $ 250,000 $ 250, Dog Park-Community Park $ 50, Luce Line Trail Head-Community Park $ 165,000 $ 165, Gathering Area/Open Space-Community Park $ 50,000 $ 50, th St Wetland Trail $ 100,000 $ 100, Rick Johnson Streambank Fishing Piers $ 8,000 $ 8,000 $ 20, Derson Trail Loop 25 TBD $ 170,000

6 171 Kings Highland/Luce Line Trail Connection 25 TBD $ 1,200, Newton Ave Trail Connection 25 TBD $ 345, Landings Trail Connection 25 TBD $ 300, Luce Line Trail Head-Lewis Ave 20 TBD $ 35, Hwy 25/White Trail Connection 20 TBD $ 132, Rick Johnson Streambank Restoration $ 75, Park Fund Acquisitions Total $ 53,000 $ 51,000 $ 236,000 $ 270,000 $ 295,000 $ 50,000 $ 165,000 $ - $ - $ - $ 20,000 $ 75,000 $ - $ - $ - $ - $ - $ - $ - $ - $ Total Capital Fund Contributions $ 834,666 $ 885,000 $ 1,001,000 $ 913,800 $ 960,000 $ 980,000 $ 1,078,000 $ 1,236,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,555,000 $ 1,120,000 $ 1,120,000 $ 1,120,000 $ 1,120,000

7 SEALCOAT SEQUENCING YEAR 1 (75,000 SY) YEAR 2 (68,000 SY) YEAR 3 (61,000 SY) YEAR 4 (66,500 SY) YEAR 5 (56,000 SY) YEAR 6 (57,600 SY) NOTE: WHEN MILL & OVERLAY IS PLANNED TO OCCUR WITHIN 3 YEARS AFTER SEALCOATING, ELIMINATE THAT PORTION OF THE SEALCOATING PROJECT TYPE SCALE FEET Bolton & Menk, Inc. 2015, All Rights Reserved H:\WATT\C \WATERTOWN PAST RECONSTRUCTION FIGURE\MILL-OVERLAY SEQUENCING.DWG 06/17/2015 3:37 PM MANKATO, MN FAIRMONT, MN SLEEPY EYE, MN BURNSVILLE, MN WILLMAR, MN CHASKA, MN RAMSEY, MN MAPLEWOOD, MN BAXTER, MN ROCHESTER, MN AMES, IA SPENCER, IA DES MOINES, IA FARGO, ND CITY OF WATERTOWN SEALCOAT SEQUENCING

8 MILL & OVERLAY SEQUENCING NOTE: FULL STREET RECONSTRUCTION IS ANTICIPATED APPROXIMATELY 10 YEARS AFTER MILL & OVERLAY AND WOULD INCLUDE FULL CITY UTILITY REPLACEMENT TYPE SCALE FEET MANKATO, MN FAIRMONT, MN SLEEPY EYE, MN BURNSVILLE, MN WILLMAR, MN CHASKA, MN RAMSEY, MN MAPLEWOOD, MN BAXTER, MN ROCHESTER, MN AMES, IA SPENCER, IA DES MOINES, IA FARGO, ND CITY OF WATERTOWN Bolton & Menk, Inc. 2015, All Rights Reserved MAINTENANCE SEQUENCING H:\WATT\C \WATERTOWN PAST RECONSTRUCTION FIGURE\MILL-OVERLAY SEQUENCING.DWG 07/10/ :47 AM

9 VEHICLE AND EQUIPMENT REPLACEMENT POLICY The City plans for capital investment to replace aging or obsolete fleet vehicles and equipment based upon expected useful life and service conditions. As vehicle and equipment nears its anticipated replacement identified the City will use the below-listed criteria to initiate an evaluation process. Vehicles and equipment will not be automatically replaced until undergoing an inspection and assessment process defined below. THRESHOLD VALUES FOR EVALUATION Criterion Light Duty Med/Heavy Duty Off Road Vehicle Age Mileage/Hours 80,000 60,000 6,000 REPLACEMENT FACTORS Factor Age Miles/Hours Type of Service Reliability Maintenance & Repair Costs (M&R) Condition Points One point for each year of chronological age One point for each 10,000 miles of use/600 hours of service 1, 3, or 5 points are assigned based on the type of service that vehi For instance, a heavy truck with plow would be given a 5 because i duty service. In contrast, a light duty truck with no plow would be g Points are assigned as 1, 3, or 5 depend ending on the frequency that the vehicle is out of service for repair. A 5 would be assigned to a vehicle that is out of service two or more times per month on average, while a 1 would be assigned for a vehicle out of service once every three months or less. 1 to 5 points are assigned based on total life M&R costs (not including repair of accident damage). A 5 is assigned to a vehicle with life M&R costs equal to or greater than the vehicle s original purchase price while a 1 is given to a vehicle with life M&R costs equal to 20% or less of its original purchase price. This takes into consideration body condition, rust, interior condition, accident history, anticipated repairs, etc. A scale of 1 to 5 is used, with 5 being poor condition. Point Determinations and Evaluation Actions Under 11 Points Condition I Excellent 12 to 15 Points Condition II Good 16 to 20 Points Condition III Qualifies for replacement 21 points and above Condition IV Needs immediate consideration