10.1. SR 08-20-2012 - Laserfiche WebLink

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/j* El . REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 10.1 AGENDA SECTION MEETING DATE PREPARED BY Work Session August 20, 2012 Tim Simon, Finance Director ITEM DESCRIPTION REVIEWED By 2013 Budget Discussions Cal Portner, City Administrator REVIEWED BY ACTION REQUESTED Continue 2013 budget discussions. BACKGROUND/DISCUSSION Following is an overview of the Equipment Replacement Fund, Environmental, Energy City,Landfill, Garbage, Storm Water,and Fire budgets. Attached are the department requested budget worksheets for those departments along with the proposed 2013 department/division goals. Let me know if you would like more detail than what's provided. Equipment Replacement Fund (2013-2017) We will review the Equipment Replacement Fund which is a section of the Capital Improvement Plan. The Equipment Replacement Fund covers replacement of wheeled equipment and vehicles. This fund was established to provide a funding source and long-range planning for the replacement of equipment. The fund is replenished on an annual basis through charges paid by each General Fund department through their operating budgets. This year the Fleet Committee recommended adding Pinewood to our long-range planning and had Pinewood forecast their replacements for the next 10 year. 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. The 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 department use over the next several years, to determine the optimal time to replace vehicles. If the Council would like any more information on any specific piece of equipment being requested please let Mark Thompson (Fleet Committee Chair) 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. P O II E R E II B I N:\Public Bodies\City Council\Council RCA\Agenda Packet\08-20-2012\budgetstaffreport0820.docx NATURE