ITEM: 12.2 ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPTING THE 2013 CAPITAL FUND BUDGET
Background
Council reviewed the proposed list of capital purchases for 2013 at the December 13, 2012 workshop. Based on the discussion that took place at that meeting, no adjustments have been made to the 2013 proposed Budget. Council will have the opportunity to amend the 2013 Proposed Capital Fund Budget at this meeting. Attached for Council review is both detail and summary information regarding the proposed budget.
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 2013 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 2013 to assist in the decision process.
With the above adjustments, staff is presenting the attached 2013 Capital Equipment Fund Budget for Council's consideration and adoption.
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 2013 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
12/13/2012 - Workshop discussion
01/03/2013 - Council adoption
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2013 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 2013 appropriations attached hereto are approved.
3. That the 2013 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 3rd day of January, 2013.
Recommendation
By motion, adopt the above resolution.