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Capita/Improvement Planning -June 11, 2001
<br />
<br />Capital equipment is an essential element of municipal services.
<br />City creates and maintains 1 O-year projections of equipment
<br />acquisition and replacement needs..
<br />
<br />The
<br />
<br />On-going
<br />
<br />$500,000 to $600,000 per year.
<br />
<br />The City does not currently have a long-term funding plan for capital
<br />equipment. In the past, purchases have been financed with a
<br />combination of operating revenues, reserves and debt. While the City
<br />has the ability to borrow money for all types of capital equipment, a
<br />cash-based funding plan avoids the additional finance and interest
<br />expense.
<br />
<br />Equipment is currently financed through the General Fund and the
<br />Capital Outlay Reserve. The General Fund budgets approximately
<br />$320,000 for equipment purchases. The Capital Outlay Reserve
<br />receives $120,000 in transfer of funds from municipal utilities.
<br />
<br />Additional annual revenues will be needed in 2002 and beyond to
<br />provide for a sustainable funding plan. Property taxes and enterprise
<br />funds are the most likely sources.
<br />
<br />Financing all costs through the Capital Outlay Reserve would
<br />improve the ability for long-term planning.
<br />
<br />Capital Outlay Reserve
<br />
<br />Expenditures
<br />
<br />Net transfers
<br />
<br />Surplus/Deficit
<br />
<br />Fund Balance
<br />
<br /> 1997 1998 1999 2000
<br />Property tax 299 0 0 0
<br />Landfill surcharge 0 0 0 0
<br />Interest 26,400 25,294 15,285 20,137
<br />Other 207,340 70,495 210,973 145,699
<br />
<br /> 234,039 95,789 226,258 165,836
<br />
<br />Current 46,113 27,097 29,663 103,360
<br />Capital 222,705 148,767 403,371 118,621
<br />
<br />a~n
<br />
<br />268,818 175,864 433,034 221,981
<br />105,182 66,976 18,439 103,623
<br />70,403 (13,099) (188,337) 47,478
<br />
<br />437,139 514,339 501,240 312,903
<br />507,542 501,240 312,903 360,381
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