Workshop Item Joe Huss, Finance Director/Assistant City Manager
Title
Title
2022 Capital Equipment Fund
end
Background
The City’s Capital Equipment Fund is designed to provide a funding source for the annual purchase of computers, vehicles, capital equipment, and other improvements that have a useful life of two years or more. The Capital Fund does not provide funding for equipment and capital project improvements that have a dedicated funding source in place such as water, sanitary sewer, or storm water utility systems.
Revenue
Traditionally, funding for capital assets comes from a transfer of unrestricted reserves from the General Fund or proceeds from the issuance of a debt instrument, such as a Certificate of Indebtedness or Capital Note. To the extent that equipment purchases can be funded through unrestricted reserves, the city can avoid the additional costs associated with issuing debt.
2022 Proposed Expenditures
Summarized below are the City’s capital equipment requests for 2022. Requests are classified as follows:
Capital Requests totals by department:
|
Administration |
$2,725 |
|
Finance |
$278,780 |
|
Safety Services |
$728,550 |
|
SBM Fire |
$414,900 |
|
Public Works |
$814,000 |
|
Parks & Recreation |
$775 |
|
Community Development |
$5,625 |
|
TOTAL |
$2,245,355 |
Five-Year Outlook
The five-year outlook for the capital equipment fund is stable. Staff continues to update and refine the city’s five-year capital improvement plan, which includes the capital equipment plan. The CIP projects 10-years and ensures that the city has adequate funding to continually replace and implement new equipment and improvements to all governmental departments. With the fleet rightsizing study being completed in 2022, staff anticipates the updating of vehicle and equipment replacement schedules which will aid in budgeting and long-term capital planning.
Staff Recommendation
Staff is seeking Council’s discussion and direction regarding the 2022 Parks Capital Budget and 2022-2026 CIP
Attachment List
2022 Capital Equipment Request Details
2022 Capital Equipment Budget