Staff recommends that City Council review the FY26 Equipment Replacement Plan (ERP) for consideration and action at the November 18th City Council meeting.

In 2000, the City developed an equipment replacement program to monitor and plan for all equipment replacement in the City. All vehicles and non-stationary equipment with a useful life of greater than 3 years and a cost of $5,000 or more is included in the plan. The program has criteria and guidelines to identify when equipment should be considered for replacement, as well as allow the City to make intelligent investments in equipment in the future. The plan covers a 20-year time period and is reviewed annually.  Annually, every piece of equipment that is eligible for replacement is reviewed by a committee made up of representatives from across all City departments.  The committee makes replacement recommendations to City Administration and City Council for annual adoption. Once the plan is adopted, the replacement costs are included in the next fiscal year's budget.

All city equipment is included in the plan, which is used to budget and make sound financial decisions for equipment replacement. The City uses the plan to set aside money for replacements. Governmental fund departments, Parks, Code Enforcement, Police, Fire, Planning, and Library, contribute annually to a separate fund to ensure funds are available when equipment is in need of replacement, while Enterprise and Internal Service departments maintain reserves within their departmental funds for equipment replacement.  

No Council action is needed at the work session.

The FY26 ERP replacements total $9.7 million. This includes $7.5 million of planned replacements, with an additional $2.1 million in additional requests for added equipment costs related to upgrades and inflationary increases.
The FY26 ERP estimates that annual contributions of Governmental Funds to the Equipment Replacement Fund will total $1.58 million, a reduction of $50,000 from FY 25.

                                                             

Estimated Contributions by Fund
Fund	2025	2026	Difference
Parks & Recreation	352,555	343,550	(9,005)
Code Enforcement	25,191	24,385	(806)
General Fund Total	377,746	367,935	(9,811)
Animal Shelter	12,212	22,596	10,384
Fire	686,949	576,595	(110,354)
Police	519,299	577,703	58,404
Public Safety Total	1,218,460	1,176,893	(41,567)
Planning	2,414	2,337	(77)
Community Development	1,080	3,162	2,082
Library	33,632	33,005	(627)
Total Governmental	1,633,332	1,583,332	(50,000)