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Item 1.M.
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| City Council Regular | |
| Date: | 12/19/2022 |
| Title: | FY2024 Equipment Replacement Plan (ERP) |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | No |
| Legal Review | No |
RECOMMENDATION
Staff recommends that City Council adopt the FY24 Equipment Replacement Plan
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
City staff presented the FY24 Equipment Replacement Plan at the November 21st, 2022, City Council work session. No changes have been made to the plan that was presented, based upon discussion that occurred at that meeting.
In 2000, the City developed an equipment replacement program to monitor and plan for all equipment replacement at 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 into the future. The plan covers a 20-year time period and is reviewed annually. Each year 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 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 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.
In 2000, the City developed an equipment replacement program to monitor and plan for all equipment replacement at 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 into the future. The plan covers a 20-year time period and is reviewed annually. Each year 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 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 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.
ALTERNATIVES
City Council may:
- Approve; or,
- Not Approve the Equipment Replacement Plan
FISCAL EFFECTS
The FY24 ERP replacements total $10,024,412 across multiple departments. This includes $9,228,174 of planned replacements, with an additional $796,238 in additional requests for added equipment costs related to equipment upgrades.
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FY2024 contributions to the ERP Fund are $1,660,000, and increase of $141,130 from FY2023:
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FY2024 contributions to the ERP Fund are $1,660,000, and increase of $141,130 from FY2023: