6.0. SR 11-10-2003 - Laserfiche WebLink

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Budget Staff Report November 10, 2003 Page 5 of 6 program (CIP) items. The main CIP discussion items were the timing and funding for the replacement of the barn floor, the timing of the fire truck purchase (Engine #2 replacement), and the funding for the city portion of the Pavement Rehabilitation Program (PRP). /ce Arena Floor The Council has had periodic updates over the past month regarding the status of the barn floor. It appears that the floor will make it another year but that ice will not be available until later than normal. The delay is costing the city revenues and we are incurring additional expenses in trying to correct the problems to get ice established in the barn. In this regard, the General Fund contribution to the Ice Arena at the end of 2003 will be substantially higher than originally anticipated. This will slightly reduce the flexibility the city has svith its Fund Balance at the end of the year. In terms of financing the $400,000 to $425,000 floor replacement project in 2004 the city has a couple of options. One option is to use some NSP funds and some Liquor Store funds to pay for the project. The other option is to use the Government Building Reserve money; but this money is not available until 2005. (The Government Building Reserve obtains its money through the Landfill Surcharge, which has now become part of the Host Fee.) This arena floor financing decision should be made either when the bids are approved on November 10, 2003 or when the updated five year CIP is reviewed. The recommended approach is to use NSP and Liquor Store funds. (In 2005 the Council, at their discretion, can always move the Government Building Reserve money to other funds.) Fire Truck The City Council has expressed a desire to finance the $375,000 fire truck engine over two years. Accordingly, the fire department is moving forward assuming that the truck will be purchased and paid for in later 2004 and early 2005. In the next few months staff will get a recommendation to the City Council on how this truck should be funded. The two main approaches available are Equipment Reserves and Equipment Certificates that are repaid with tax monies. Additionally, the Fire Chief is obtaining information on truck funding options from various manufacturers. Regardless of the funding approach, a significant amount of money will be required by the end of 2004 and this source will likely be Equipment Reserves. This truck funding issue should be finalized when the CIP is reviesved. Pavement Rehabilitation Program (PRP) The first phase of the PRP took place in 2003 and in very "round numbers" the city is using its street reserves (Landfill Surcharge money that is now part of the Host Fee) for about one- third of the project, tax revenues for about one-third of the project, and assessing out about one-third of the project. The original concept was about one million dollars worth of improvements every other year but the final outcome may be larger projects on an every other year or every third year timetable. The city has accumulated about $276,000 in tax monies for this program and has $100,000 in the 2004 tax levy. The city is in good shape initially with this program but we still need to work out the details in terms of what we can afford and what makes sense from a bonding and construction point of viesv. S: ~Council~Pat~BudgctN 1103balancing.doc