ITEM: 12.5 ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPTING THE 2012 CAPITAL FUND BUDGET
Background
Council last reviewed the proposed list of capital purchases for 2012 at the December 15, 2011 workshop. Based on the discussion that took place at that meeting, the following adjustments were made:
· The amount to be provided either by the transfer of General Fund reserves or the issuance of a Capital Note was reduced by $65,000 through a combination of expenditure cuts and the use of grant proceeds for qualified energy saving building improvements.
· Overall expenditures were reduced by $34,200.
o $4,200 in proposed expenditures for new pc's or laptops in low demand areas (e.g., conference rooms) were removed. Existing machines will be redeployed to lower demand locations.
o $5,000 for the purchase of web filtering software was removed.
o $10,000 for a new copier at the Senior Center was removed.
o $15,000 to run fiber-optic service to the Senior Center was removed.
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 2012 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 2012 to assist in the decision process.
With the above adjustments, staff is presenting the attached 2012 Capital Equipment Fund Budget for Council's consideration and adoption.
Lastly, with the five-year model that staff developed this past year, the outlook for the Capital Equipment Fund indicates consistent expenditures of roughly $1.1 million annually over the next five years. As 2012 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
10/13/2011 - Workshop discussion
12/15/2011 - Workshop discussion
01/05/2012 - Council adoption
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2012 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 2012 appropriations attached hereto are approved.
3. That the 2012 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.
Recommendation
By motion, adopt the above resolution.