ITEM: 12.7 ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2014 CAPITAL EQUIPMENT BUDGET
Background
Council has reviewed the proposed list of capital purchases for 2014 at two previous Workshops on November 14 and December 19, 2013. Based on the discussion that took place at that meeting, adjustments have been made to the 2014 proposed Budget. Attached for Council review is both detail and summary information regarding the proposed budget for Council consideration and adoption.
While it has become customary to fund capital purchases with the use of undesignated General Fund reserves, per Council direction, staff will examine the feasibility and cost-effectiveness of issuing a Certificate of Indebtedness to fund 2014 capital expenditures. An examination of current debt payments and the impact that any new debt issues will have on the overall property tax levy will be performed early in 2014 to assist in the decision process.
Lastly, the five-year outlook for the Capital Equipment Fund indicates consistent expenditures of roughly $1.1 million annually over the next five years. As 2014 unfolds, staff will reexamine capital needs and continue to look for the most cost-efficient and economical way to fund capital expenditures.
Schedule of Actions
11/14/2013 - Workshop review
12/19/2013 - Workshop review/discussion
01/02/2014 - Council adoption
Recommendation
By motion, approve the following resolution.
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2014 has been prepared by the City Manager; and
WHEREAS, the City Council has examined, studied, and reviewed said proposed Capital Equipment Fund Budget; and
WHEREAS, the City Council has, after due consideration and deliberation, made such amendments and adjustments in the proposed Capital Equipment Fund Budget as they consider necessary, desirable, or expedient.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Blaine as follows:
1. That the proposed Capital Equipment Fund Budget attached hereto is approved.
2. That the 2014 appropriations attached hereto are approved.
3. That the 2014 funding sources identified and attached hereto are approved, and the transfer of excess reserves from the General Fund is approved.
4. That the City Manager is authorized and directed to implement and to administer, within the budgetary funding limits and within adopted City policy and relevant State and City laws and regulations, said approved Capital Equipment Fund Budget.
BE IT FURTHER RESOLVED by the City Council of the City of Blaine that, where allowed, the City intends and reasonably expects to reimburse itself for the payment of capital equipment contained in this budget out of the proceeds of a borrowing (certificate of indebtedness) to be made by the City after the date of payment of the expenditures.
PASSED by the City Council of the City of Blaine this 2nd day of January, 2014.