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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />10.2 <br /> <br />Meeting Date <br />May 19, 2025 <br />Prepared By <br />Joe Stremcha, Business Services Director/Assistant <br />City Administrator <br /> <br />Item Description <br />Fire Dept. CIP <br />Reviewed by <br />Lori Stich <br />Mark Dickinson <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />Discuss the Fire Dept. Capital Improvement Plan. <br /> <br /> <br />Background/Discussion <br />The following are projects seeking funding in 2026 and 2027: <br />▪ $25,000,000 Fire Station One (Land in 2025, Building in 2027) <br />▪ $2,100,000 Aerial (2026) <br />▪ $1,000,000 Engine Two (2027) <br />▪ $1,750,000 Burn Building (2027) <br /> <br />The city will need to begin the bonding process within the next 6-12 months and the Council will need to <br />consider the best method to pay for these improvements. <br /> <br />The 2025 levy was $16,844,183, which means a 1% increase to the levy equals $168,441. The estimated annual <br />bond payment for a $30,000,000 project is $1,968,693 (based on a 25-year bond with 4.39% interest). <br />$1,968,693 divided by $168,441 equals 11.69. This represents roughly a 12% increase to the levy. <br />Alternatively, an additional 0.33% sales tax could generate sufficient revenues based on the .5% sales tax <br />revenue implemented to complete the Active Elk River projects. <br /> <br />Notable language under consideration by the state legislature regarding future uses of Local Option Sales <br />Taxes: <br />▪ Authorization allowed: "Law enforcement center" means a facility that serves multiple communities <br />and provides public safety functions, including a fire or police station and a facility that provides <br />emergency 911 and dispatch functions, training facilities, court security and support, emergency <br />operations, evidence and record retention, and other public safety services. Law enforcement center <br />does not include correctional facilities licensed under section 241.021. <br />Page 184 of 197