3.1. SR 08-12-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 3.1 Agenda Section Meeting Date Prepared by Work Session August 12, 2013 Tim Simon, Finance Director Item Description Reviewed by 2014 Budget Cal Portner, City Administrator Reviewed by Action Requested Continue 2014 budget discussion. Background/Discussion Following is an overview of the Equipment Replacement Fund, Streets, Snow Removal, Equipment Maintenance, Environmental, Energy City,Landfill Fund, Recreation, Senior Center,Ice Arena and Pinewood budgets. Attached are the department-requested budget worksheets for those departments along with the proposed 2014 department/division goals. Let staff know if you would like more detail. Equipment Replacement Fund (2014-2018) The Equipment Replacement Fund is a section of the Capital Improvement Plan (CIP). The Equipment Replacement Fund covers replacement of wheeled equipment and vehicles. This fund was established to provide funding 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 and Pinewood Golf Course 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. Starting in 2014,we have programmed our Local Government Aid (LGA) to be included in the Equipment Replacement Fund and a subsequent increase to the transfer in from ERMU for the corresponding amount in the General Fund. The fund maintains a significant fund balance,which is necessary to accumulate adequate reserves for the purchase of expensive vehicles, such as fire trucks and to cash flow purchases of multiple high cost vehicles in the same purchasing cycle. The replacement cycle is continuously evaluated, based on service needs, equipment condition,and projected use, to determine the optimal time to replace vehicles. The Fleet Committee conducts the long-range planning and replacement of the city's fleet and financial condition of the Equipment Replacement Fund. COD Director Suzanne Fischer is the current committee chair. If the Council would like more specific information on any equipment request, please contact Suzanne. pawEe � u ar N:\Public Bodies\Agenda Packets\08-12-2013\x10.1 si.docx IN U