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<br />"''''~~ <br />,.....'7;.-."y"-'"o' >: <br />.....,... . <br /> <br />EQUIPMENT CERTIFICATES - CAPITAL OUTLAY <br /> <br />. <br /> <br />Provides for the purchase of needed equipment and vehicles .' <br />which have a life span of three (3) years or five (5) years <br />,or more: Equipment certificates function like a bank loan <br />and funds are levied accordingly to repay these loans <br />annually. <br /> <br />1994 BUDGET COMPARED WITH 1993 BUDGET' <br /> <br />Th'e amount of 1994" Equipment Certificate funds needed for" new <br />equipment and vehicles is projected in the amount of $109,700. <br /> <br />The use of ~quipment certificates is essentially a three or <br />five year loan which requires interest payments by the City. <br />This is not the preferred, method of purchasing equipment. <br />Ideally, the City would like to move away from this method of <br />purchasing equipment and vehicles, and this may now be possible <br />with the levy limits being eliminated. With no levy limits on <br />cities, these expenditures could be placed into the General <br />Fund. The taxpayers would take a "hit" for a few years for <br />these capital purchases, but after a few years, the City would <br />be paying less for the actual purchases as there would be no . <br />interest payments necessary. This changing of the financing <br />method for equipment purchase was evaluated by the City Council . <br />in 1994, but no change took place in the past practice of using <br />these certificates. No change in the use of this financing <br />mechanism was due mainly to a concern over an increase in the <br />,tax rate based on the need to finance other programs and <br />. personnel. Most' likely ,the use of equipment certificates by <br />the City will have to decrease for a number of years to reduce <br />our reliance upon this financing tool and this issue is sure to <br />be evaluated by.the City Council in future years. <br /> <br />Consistent with past practice, the equipment certificates in <br />1994 are proposed to be used for three police department <br />vehicles and the set up of these vehicles; 'an emergency <br />preparedness siren; and Street Department equipment. The <br />Street Department equipment is listed on the adjacent page and <br />the amounts requested by each department are very similar to <br />previous years. <br /> <br />. <br />. <br /> <br />57. <br />