3.1. SR 08-11-2014 - Laserfiche WebLink

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Public Safety Building—The Utilities line item is adjusted to reflect recent trends from our energy management system. The Building RepairlMaintenance changes for costs associated with gun range repairs and material disposal. Community Operations and Development Budgets (proposed)- Engineering—The General Fund has revenue (engineering services reimbursement) which offsets approximately 70% of the time the city engineer and engineering tech II work on projects. This is higher than prior years since 2015 is a street reconstruction year. In order to easily track the cost we budget all salaries in the Engineering Department and chargeback the project funds. The Equipment Repair and Maintenance line item is decreased to offset copier costs in the Information Technology budget. Equipment Replacement Fund (2015-2019) 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,Local Government Aid (LGA), interest earnings, and auction proceeds. The fund maintains a significant fund balance,but 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 Suzanne Fischer (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. Storm Water Staff will begin reviewing the 2015 and 2016 storm water budget and the long-term plan for the MS4 permit requirements. General Fund Update An update on the overall General Fund revenue and expenditures will be provided. In early September, we should get the preliminary Net Tax Capacity (NTC) number from the County. We will then run tax impacts to residential and industrial/commercial properties. N:\Public Bodies\Agenda Packets\08-11-2014\3.1 sr budgetmemo0811(waiting for Cal to review).docx