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Item 3.
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| City Council Work Session | |
| Date: | 11/20/2023 |
| Title: | FY25 Equipment Replacement Plan |
| Presented by: | Andy Zoeller, Finance Director |
| Department: | Finance |
| Presentation: | Yes |
| Legal Review: | No |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that City Council review the FY25 Equipment Replacement Plan (ERP) for consideration and action at a December City Council meeting.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
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. 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 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.
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.
ALTERNATIVES
No Council action is needed at the work session
FISCAL EFFECTS
The FY25 ERP replacements total $11.5 million. This includes $9.6 million of planned replacements, with an additional $1.9 million in additional requests for added equipment costs related to upgrades and inflationary increases.
The FY25 ERP estimates that annual contributions for Governmental Funds into the Equipment Replacement Fund will total $1.63 million, a reduction of $26,668 from FY24,
The FY25 ERP estimates that annual contributions for Governmental Funds into the Equipment Replacement Fund will total $1.63 million, a reduction of $26,668 from FY24,
| Estimated Contributions by Fund | |||
| 2024 | 2025 | Difference | |
| Parks & Recreation | 364,546 | 352,555 | (11,991) |
| Code Enforcement | 23,079 | 25,191 | 2,112 |
| General Fund Total | 387,625 | 377,746 | (9,879) |
| Animal Shelter | 22,498 | 12,212 | (10,286) |
| Fire | 648,955 | 686,949 | 37,994 |
| Police | 574,433 | 519,299 | (55,134) |
| Public Safety Total | 1,245,886 | 1,218,460 | (27,426) |
| Planning | 2,497 | 2,414 | (83) |
| Community Development | 1,116 | 1,080 | (36) |
| Library | 22,876 | 33,632 | 10,756 |
| Total Governmental | 1,660,000 | 1,633,332 | (26,668) |