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<br />EQUIPMENT RESERVE <br /> <br />Provides for some of the annual equipment purchases for city <br />departments. Other equipment that the city annually purchases is <br />identified in the equipment certificate budget or within each <br />department in the general fund. Part of the funding for the equipment <br />purchases within this budget comes from the annual contribution that <br />the city receives from the Elk River Municipal Utilities. <br /> <br />2000 BUDGET COMPARED WITH 1999 BUDGET <br /> <br />Expenditures from the city reserves are listed on the adjacent page and are <br />outlined by department. Each of the described capital expenses will still <br />require city council approval. The total expenditures from the reserves in <br />2000 are proposed in the amount of $182,700. <br /> <br />The creation of the equipment reserve budget allows the city to better track <br />which capital outlay expenditures are being financed with reserves and <br />which ones are being financed with general tax monies. The capital outlay <br />items financed with taxes are either in the general fund budget or in the <br />equipment certificate budget. <br /> <br />Equipment reserves to fund this budget are limited. The city does annually <br />add money into this reserve by way ,of allocating part of the annual Elk River <br />Municipal Utilities contribution to the city. Interest revenue is also a source <br />of income on an annual basis, but this revenue fluctuates from year to year. <br />The city must be careful to not become too dependent on financing major <br />pieces of equipment on an annual basis with this reserve fund or else it win <br />become depleted and other funds including tax monies will have to be used to. <br />finance these equipment expenditures. <br /> <br />Regarding the 2000 budge~, it should be noted that the street department <br />truck is the second of four. Two more are proposed over the next three years <br />and whether or not these vehicles will be financed entirely out of equipment <br />reserves has yet to be determined. Additionally, the pumper payment for the <br />fire department is scheduled to go on until 2002, then these funds in 2003 <br />will be added to the $72,900 tax levy that is "freed up" (because the 1989 fire <br />equipment bond ends) so that a $275,000 fire department tanker can be <br />purchased in 2002. The final item in this budget is for the ice arena and is a <br />back pressure water regulator to help melt the snow in the ice melt pit. <br /> <br />66 <br /> <br />v. <br /> <br />ci,.. .tI. ;..}:;:- <br /> <br />. <br /> <br />. <br /> <br />. <br />