ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2016 CAPITAL EQUIPMENT BUDGET
Background
Council has reviewed the proposed list of capital purchases for 2016 at the City Council Workshops of October 8 and November 12, 2015. Based on discussions from those meetings, the attached 2016 proposed Capital Budget is presented for Council’s consideration and adoption.
While it has become customary to fund capital purchases with the use of undesignated General Fund reserves, current projections indicate that, after appropriating roughly $550,000 in anticipated 2015 unrestricted reserves, the remainder of the reserves will not be sufficient to fully cover the cost of 2016 proposed capital equipment purchases. Per Council direction, staff will look to the issuance of a Certificate of Indebtedness to fund that portion of 2016 capital equipment purchases that will not be covered by the transfer of unrestricted General Fund reserves.
Lastly, the five-year outlook for the Capital Equipment Fund indicates consistent expenditures of roughly $1.5 million annually over the next five years.
Recommendation
By motion, approve the following resolution.
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2016 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 2016 appropriations attached hereto are approved.
3. That the 2016 funding sources identified and attached hereto are approved, and, if and where indicates, 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 December 2015.