WORKSHOP ITEM - Joe Huss, Finance Director
Title
2020 PROPOSED CAPITAL EQUIPMENT FUND BUDGET
Background
Council first reviewed the proposed 2020 Capital Fund Budget at the September 16 2020 Workshop and then again at the Workshop of October 14, 2020. At the October workshop, a revised draft budget totaling $2,518,000 was presented for City Council review and consideration.
Council discussion centered on potentially restoring the funding for a new SBM fire truck (a tender). The consensus among councilmembers at the meeting was to postpone consideration of adding or removing fire equipment until an understanding of where Blaine’s two partners (Mounds View and Spring Lake Park) stood regarding 2020 budgeted purchases. That process has been ongoing.
Additionally, there was discussion regarding removing $120,000 of GIS requests for initiatives that were more appropriately spent out of the General Fund.
Based on discussions at the October Workshop and staff follow-up, the 2020 Proposed Capital Budget has been amended as follows:
• Fund the SBM fire tender over two years - 40% in 2020 and 60% in 2021. For 2020, Blaine’s share would be $133,000. This has been added to the 2020 proposed budget.
• Remove $120,000 in GIS expenditures.
• Add $90,000 for replacement of a boiler in City Hall.
The net addition to the 2020 Capital Equipment Fund Budget is $103,000 for total proposed expenditures of $2,620,580. Funding would be split between unrestricted general fund reserves (estimated at $1.1 million) and issuance of a capital equipment certificate (roughly $1.4 million).
Recommendation
Staff is requesting City Council review and direction on the proposed capital equipment budget.