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Equipment Replacement Fund (2018-2022) <br />The Equipment Replacement Fund is a section of the Capital Improvement Plan (CIP). The Fund <br />covers replacement of wheeled equipment and vehicles and was established to provide funding and long- <br />range planning for the replacement of equipment. The fund is replenished on an annual basis through <br />charges paid by each general fund department through their operating budgets. The amount charged to <br />each department is allocated based on the amortization of their respective equipment and updated <br />annually. In addition, the fund receives the Local Government Aid (LGA), a portion of the payment in <br />lieu of tax from Elk River Municipal Utilities, interest earnings, and auction proceeds. The replacement <br />cycle is continuously evaluated, based on costs and department use to determine the optimal time to <br />replace vehicles. <br /> <br />Enterprise Budgets (proposed): <br />Storm Water – This fund was established to account for storm water activities to ensure compliance with <br />our storm water permit. Currently, there are over 300 ponds that will need maintenance and repairs over <br />time. <br /> 5% storm water rate increase is proposed for 2018. <br /> <br />Municipal Liquor – <br /> Due to Sunday sales, part-time pay was increased at both Northbound and Westbound. <br /> Credit Card Fees were increased at both stores based on prior years’ actuals. <br /> <br />Wastewater – <br /> 3% rate increase is proposed for 2018, consistent with prior year’s projections. <br /> Disposal Fee revenue was added for the Landfill’s disposal of their leachate at the WWTP. <br /> Personal Services includes the addition of a Locate Technician for a total cost of $65,550 ($62,900 <br />personal services and $2,650 additional costs). <br /> Capital Outlay items consist of plant improvements, pumps, a pickup and other equipment. <br /> <br />Garbage – Residential garbage and recycling program. <br /> Amanda will be proposing the garbage rate structure with Council. <br /> 30% of the Environmental Coordinator is allocated to the Garbage budget. <br /> Waste Disposal reflects the GRE tipping fee; in 2016 the fee increased from $64/ton to $75/ton. <br /> Contractual Services is for the garbage hauling contract and is based on customer count and <br />container choice. Garbage hauler rates are increasing 3% for 2018. <br /> <br />General Fund Update <br />An update on the overall preliminary General Fund revenue and expenditures is provided in the packet. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> Department Budget Worksheets <br /> Requested Personnel Summary <br /> Capital Outlay Summary <br /> General Fund Summary <br /> Preliminary Tax Impact <br />