ADMINISTRATION - Joe Huss, Finance Director
Title
ADOPT 2019 CAPITAL EQUIPMENT BUDGET
Background
Council has reviewed the proposed list of capital purchases for 2019 at the City Council Workshops of October 11 and 18, 2018. Based on discussions from those meetings, the attached 2019 proposed Capital Budget is presented for Council’s consideration and adoption. Total planned capital expenditures for 2019 are $2.7 million, about $100,000 less than the 2018 Budget.
It has become customary of the Council to fund capital purchases with the use of unrestricted General Fund reserves when those reserves are available. Current projections indicate that available unrestricted reserves remaining at 2018 year-end will fully fund all proposed capital purchases in 2019. The budget indicates the issuance of a capital certificate of indebtedness to fund the remainder if 2018 year-end unrestricted reserves do not prove adequate.
Also presented herein is the five-year outlook for the Capital Equipment Fund. Projections indicate declining but stable capital expenditures annually in the succeeding four years. Staff will be reviewing this projection more thoroughly in 2019 as part of its comprehensive capital and strategic planning initiative.
Recommendation
By motion, approve the following resolution.
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2019 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 2019 appropriations attached hereto are approved.
3. That the 2019 funding sources identified and attached hereto are approved, and, if and where indicated, 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 6th day of December 2018.