Staff recommends that City Council review the FY27 Equipment Replacement Plan (ERP) for consideration and action at the December 8, 2025 City Council Regular Business 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 $10,000 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 annually, every piece of equipment that is eligible for replacement is reviewed by a committee consisting 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 City's fiscal year's budget and the City uses the plan to make sound financial decisions for equipment replacement. Governmental fund departments, which include 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.  Enterprise and Internal Service departments maintain reserves within their departmental funds for equipment replacement.

No Council action is needed at this work session, but consideration for recommendations is welcomed.

The FY27 ERP replacements total $12 million. This includes $9 million of planned replacements, with an additional $3 million in supplemental requests for added equipment costs related to upgrades and inflationary increases.
The FY27 ERP estimates that annual contributions of Governmental Funds to The Equipment Replacement Fund will total $1.58 million, nearly identical to FY26.