Finance - Joe Huss, Finance Director and Assistance City Manager; Alison Bong, Deputy Finance Director
Title
Title
Adopt 2022 Capital Equipment Fund Budget
end
Executive Summary
Pursuant to requirements to adopt annual budgets for certain capital funds, Staff is bringing forward the proposed 2022 Capital Equipment Fund Budget for Council consideration and adoption.
Background
Council reviewed the proposed list of capital equipment purchases for 2022 during the December 6, 2021 workshop. Based on discussions from the meeting, the attached 2022 proposed Capital Equipment Fund Budget is presented for Council’s consideration and adoption. Total planned capital expenditures for 2022 are $2,256,555.
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 2021 year-end will be sufficient to fund all proposed capital purchases in 2022.
Also presented herein is the five-year outlook for the Capital Equipment Fund. Projections indicate stable capital expenditures annually in the succeeding four years. Staff will be reviewing this projection more thoroughly in 2022 as part of its comprehensive capital and strategic planning initiative.
Strategic Plan Relationship
Staff continue to ensure the City is equipped with the most effective equipment to provide exceptional services to the residents and maintain infrastructure.
Additionally, it improves organizational health by providing staff with the best, safest, most efficient tools available. Through staff’s continued analysis of replacement cycles and evaluation of the condition of existing equipment, the City can continue working towards its priority of greater financial sustainability.
Board/Commission Review
N/A
Financial Impact
By utilizing unrestricted general fund reserves, it allows the City to fund capital purchases without the issuance of debt related to capital or additional tax levies for capital equipment.
Public Outreach/Input
N/A
Staff Recommendation
By motion, approve the following resolution.
Attachment List
2022 Capital Equipment Request Details
Body
WHEREAS, a proposed Capital Equipment Fund Budget for the fiscal year commencing January 1, 2022 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 2022 appropriations attached hereto are approved.
3. That the 2022 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, if necessary and 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 20th day of December 2021.