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<br />.. tI-1 '.J l <br /> <br />EQUIPMENT CERTIFICATES - CAPITAL OUTLAY <br /> <br />. <br /> <br />Provides for the purchase of needed equipment and vehicles that <br />have a life span of three (3) years or five (5) years or more. Equipment <br />certificates function like a bank loan and funds are levied' <br />accordingly to repay these loans annually. <br /> <br />., <br /> <br />2000 BUDGET COMPARED WITH 1999 BUDGET <br /> <br />Funding for the equipment certificate program comes from city tax revenues <br />and is part of the tax levy resolution. The amount of the 2000 equipment <br />certificate program for new equipment and vehicles is projected to be <br />$215,800. <br /> <br />Use of the equipment certificates is essentially a three to five year loan that <br />requires interest payments by the city. If the city were to purchase all of the <br />proposed equipment without using certificates, then the total 2000 expense <br />would be $215,800 versus about $57,500 by financing these expenditures over <br />five years. This is a significant difference in one year and this amount of <br />expenditures is difficult to absorb in the city budget without a tax rate . <br />increase. Equipment certificates are not the preferred method for purchasing <br />equipment because you pay more in total for the item than if you paid cash, <br />but it is one method that allows cities to keep the tax rate slightly lower for <br />the upcoming year as the expenditures are spread out over time. <br /> <br />The equipment that is planned to be purchased through the use of <br />certificates in 2000 is very straightforward and is shown on the adjacent <br />page. The proposed expenditures include a building inspector truck, :6:ve <br />police vehicles (and their set up), ten self contained breathing apparatuses <br />(SCBA) for the firefighters, an emergency preparedness siren, and a utility <br />tractor for the street department. Requests at a similar level are anticipated <br />in future years from these departments. For example, once all the SCBA's <br />are replaced in the fire department, it is anticipated that funding will be <br />needed for the replacement of fire department vehicles and trucks. <br />Additionally, once all of the emergency preparedness sirens are purchased, <br />then funds will be required for improvements at the emergency operations <br />center. It should be noted that some other capital outlay items are financed <br />with equipment reserves and also some smaller items are identified in the <br />general fund departmental budgets. <br /> <br />. <br /> <br />64 <br />