Staff recommends that City Council review the FY23 Equipment Replacement Plan for consideration and action to occur at the December 13 City Council 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 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 FY23 ERP replacements total $7,014,077 across multiple departments. This includes $6,101,648 of planned replacements, with an additional $912,429 in additional requests for added equipment costs related to equipment upgrades.
 

Department	FY 2023 Replacement Cost	Funding From ERP Fund	Funding from Department Fund
Airport	$78,535		x
Animal Shelter	71,702	x
Engineering	75,985		x
Fire	249,088	x
IT Department	10,939		x
MET Transit	1,052,667		x
Parks	414,971	x
Police	268,197	x
Public Works Belknap	593,375		x
Solid Waste	2,494,540		x
Street & Traffic	791,649		x
Total Plan Replacements	$6,101,648
Additional Equipment Funding Requests	912,429		x
Total Recommended Replacements	$7,014,077		x

FY2023 Contributions to the ERP Fund are $1,493,335, a reduction of $18,665 from FY2022:

Fund	2022	2023	Difference
Parks & Recreation	306,800	328,460	21,660
Code Enfrocment	13,047	13,017	(30)
General Fund Total	319,847	341,478	21,631
Animal Shelter	19,180	19,137	(43)
Fire	682,673	646,640	(36,032)
Police	448,592	437,544	(11,049)
Public Safety Total	1,150,445	1,103,321	(47,124)
Planning	3,712	3,705	(7)
Community Development	1,128	1,126	(2)
Library	36,869	43,705	6,837
Total Governmental	1,512,000	1,493,335	(18,665)