7.1. SR 08-15-2011 - Laserfiche WebLink

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~~ Item # 7_1. City of Elk MEMORANDUM .~, River TO: Mayor and City Council FROM: Tim Simon, Finance Director DATE: August 15, 201 I SUBJECT: 2012 Budget Discussions Equipment Replacement CIP (2012-2016 At tonight's meeting we will review the equipment replacement fund which is a section of the CIP. The equipment replacement fund covers replacement of wheeled equipment and vehicles. The fund is replenished on an annual basis through charges paid by each general fund department through their operating budgets. The amount charged to each department is allocated on the estimated replacements over the next 10 years and updated yearly. In addition, the fund receives a portion of the payment in lieu of tax (PILOT) from Elk River Municipal Utilities, interest earnings, and auction proceeds. This fund maintains a significant fund balance, but that is necessary given the sufficient variability as we utilize cash reserves when several costly vehicles are replaced in the same year. The replacement cycle is continuously evaluated, based on costs and benefits over the next several years, to determine the optimal time to replace vehicles. If the Council would like the equipment evaluation forms on an~piece of equipment being requested please let Bob Thistle or I know. The City's fleet committee is actively involved in the long-range planning of the replacement of the City's fleet and financial condition of the equipment replacement fund. Mark Thompson is the current chair of the committee. Storm Water Management See attached memo from Rebecca on the storm water budget and the NPDES requirements. This is a follow up from the July 11, 2011 budget review of the storm water budget. Other Items I have attached the last ten years of Council contingency. It appears the budget percentage has ranged from .5% to 1 % of the budget. N:APublic Bodies\City Council\Council RCA\Agenda Packet\OS-15-20ll\2012-2016equipmentxeplacementfund[l~.docs