2017-2021 Equipment Replacement Plan (ERP); HarkessCITY OF HOPKINS
MEMORANDUM
Date: October 11, 2016
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: 2017-2021 Equipment Replacement Plan (ERP)
The ERP is financially challenged in the short term and while we are selling bonds for 2016-2017 items
that have a life for 10 years or more and again in 2018 for planned purchases in 2018-2019 a funding
shortage remains. We have a number of capital items whose lives are less than 10 years and those items
cannot be financed with bonds as the life of the asset must match the bond term. Items that we are unable
to finance include police vehicles, police equipment, records management system and computer related
items.
Body worn cameras totaling $160,000 over 4 years have been removed. Of the total $115,000 was in
2018. Related to digital data is the expenditure of $115,000 for a video data server. This item is needed
despite the removal of the body cameras as our current digital data needs more efficient and secure storage.
In this ERP is the 5-year replacement of the squad car cameras ($65,000), mobile data computers
($65,000) both in 2019 and the records management system ($150,000) in 2019 which may or may not be
needed depending on the status of the software company which was recently acquired by another
company.
Long term projections for this fund are favorable primarily due to a tax levy in years 2018-2021 which will
be adjusted each year to levy only what is needed. In the meantime we have a shortfall in 2017 and 2018
that could be covered by an internal loan between city funds.
At the work session our discussion will focus on this financing approach and if that is not an avenue we
would like to pursue then we have some decisions to make with regards to items that are in the ERP that
cannot be funded with bonds.
FINANCE DEPARTMENT
EQUIPMENT REPLACEMENT FUND (602)10/6/2016
Rate Change 9% 9% 9% 10% 9% 9% 9%
BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET
2015 2016 2017 2018 2019 2020 2021
Working Capital Begin Year 538,514 (373,504) 893,249 (618,491) (296,266) 16,020 299,100
Revenues from charges 376,884 408,459 445,220 489,742 533,819 581,863 634,231
Tax Levy per FMP 400,865 472,848 532,834 605,750
Transfer in General Fund
Transfer In - Pavilion - Hockey Loan
Federal & State Grants 237,120
Interest earnings 5,982 3,000 3,000 3,000 3,000 3,000 3,000
Net Incr (Decr) in FV of Investments
Other revenues (sale of assets) 27,535 30,000 30,000 30,000 35,000 35,000 35,000
Equipment Certificates (Bonds) 1,800,000 590,000
Transfers In (Misc)
Total Revenues 647,521 2,241,459 478,220 1,513,607 1,044,667 1,152,697 1,277,981
Expenditures (excludes Leases & Depr.) 72,150 74,315 76,544 78,841 81,206 83,642 86,151
Fire Truck Financing Pymnts (2009-2018) 53,803 54,217 54,217 54,217
Capital Outlay - Equipment 1,433,586 846,174 1,859,200 934,950 527,800 662,600 430,900
Transfer Out
Total Expenses 1,559,539 974,705 1,989,961 1,191,382 732,381 869,617 640,426
Working Capital Ending Balance (373,504) 893,249 (618,491) (296,266) 16,020 299,100 936,654
(cash + receivables - payables)
Total
Items less than $10,000 and leased vehicles 5,090,755 1,962,017 1,155,657 639,187 780,147 553,747
moved to General Fund
Fire Leased Vehicles (130,735) (26,147) (26,147) (26,147) (26,147) (26,147)
Fire Leased Vehicles - outfitting (30,000) (5,000) (15,000) (10,000)
Workout Equpment - Elliptical (6,700) (6,700)
Workout Equpment - Treadmill #1 (6,700) (6,700)
Workout Equpment - Treadmill #2 (5,800) (5,800)
Workout Equpment - Weight Lifting (6,700) (6,700)
Workout Equpment - Dumb Bells (5,000) (5,000)
Automated External Defibrillator (7,800) (7,800)
Fire - Washing Machine (8,500) (8,500)
Fire - Dryer (4,500) (4,500)
Police - Admin Vehicle Leased (146,180) (25,940) (27,880) (29,360) (31,000) (32,000)
Police - Admin Vehicle Leased - Outfit (25,000) (5,000) (5,000) (5,000) (5,000) (5,000)
Police - DTF Vehicle - Leased (67,690) (11,930) (13,380) (13,380) (14,500) (14,500)
Police - DTF Vehicle - Leased - outfit (10,000) (5,000) (5,000)
Police - Admin Vehicle Floater Leased (38,500) (7,500) (7,500) (7,500) (7,500) (8,500)
Police - Admin Vehicle Floater Leased - outfit (10,000) (5,000) (5,000)
PW - Tire Changer (5,500) (5,500)
Total Items moved to General Fund Budget (515,305) (102,817) (105,707) (96,387) (102,547) (107,847)
Net ERP Funded Items 4,575,450 1,859,200 1,049,950 542,800 677,600 445,900
Delete:
Body Worn Cameras (160,000) 0 (115,000) (15,000) (15,000) (15,000)
Adjusted totals 4,415,450 1,859,200 934,950 527,800 662,600 430,900
EQUIPMENT REPLACEMENT PLAN
City of Hopkins, MN
PROJECTS BY FUNDING SOURCE
2017 2021thru
TotalSourceProject# Priority 2017 2018 2019 2020 2021
AC - Arts Center Fund
01-ERP-1104 17,10017,100Art Center Theater Projector n/a
17,10017,100AC - Arts Center Fund Total
Bonds/Lease
01-ERP-0106 108,43454,217 54,217Aerial Truck n/a
108,43454,217 54,217Bonds/Lease Total
Equipment Replacement Fund
01-ERP-0003 110,00022,000 22,000 22,000 22,000 22,000CH - Network Server n/a
01-ERP-0006 150,00030,000 30,000 30,000 30,000 30,000Computers n/a
01-ERP-0008 11,30011,300Document Management Scanner (2) n/a
01-ERP-0012 17,00017,000Core Network Switch n/a
01-ERP-0013 12,0006,000 6,000Wi-Fi and Cellular n/a
01-ERP-0014 50,00050,000Distribution Network Switches n/a
01-ERP-0015 132,00066,000 66,000Backup Server n/a
01-ERP-0036 15,00015,000Activity Center Sound System Replacement 3
01-ERP-0100 900,000900,000Tele-Squirt (Engine 2) n/a
01-ERP-0109 27,40027,400Extrication Tool (2) n/a
01-ERP-0112 12,90012,900Thermal Imaging Camera (2) n/a
01-ERP-0200 611,50098,000 147,000 98,000 107,400 161,100Marked Patrol Vehicles (7) n/a
01-ERP-0201 49,00049,000Sergeant's Vehicle n/a
01-ERP-0202 53,70053,700PSO / Parking Enforcement Vehicle n/a
01-ERP-0203 55,00055,000PSO - Utility 4x4 n/a
01-ERP-0211 110,00022,000 22,000 22,000 22,000 22,000PD - Network Server n/a
01-ERP-0212 65,00065,000Squad Car Camera Systems n/a
01-ERP-0214 35,00035,000Tactical Ballistic Vests / Helmets - SWAT n/a
01-ERP-0217 29,00029,000Taser Replacement n/a
01-ERP-0218 17,00017,000Building Video Server n/a
01-ERP-0219 145,000115,000 10,000 10,000 10,000PD - Video Data Server n/a
01-ERP-0220 65,00065,000Mobile Data Computers n/a
01-ERP-0221 150,000150,000Records Management System n/a
01-ERP-0222 160,000115,000 15,000 15,000 15,000Body Worn Cameras n/a
01-ERP-0223 12,00012,000Squad Car Wireless Solution n/a
01-ERP-0302 54,60054,6004x2 1 Ton Dump Truck n/a
01-ERP-0305 132,100132,100Single Axle Dump Truck (2) n/a
01-ERP-0306 460,000225,000 235,000Tandem Dump Truck (2) n/a
01-ERP-0311 156,400156,400Sweeper n/a
01-ERP-0312 45,90045,900PW - Roller n/a
01-ERP-0313 11,20011,200Striper n/a
01-ERP-0314 118,000118,000PW - Asphalt Paver n/a
01-ERP-0315 160,000160,000Snow Blower n/a
Wednesday, July 13, 2016
TotalSourceProject# Priority 2017 2018 2019 2020 2021
01-ERP-0318 15,00015,000Asphalt Hot Mix Heating Box - Trailer n/a
01-ERP-0710 31,30031,3004X4 1/2 Ton Truck n/a
01-ERP-0714 10,00010,000PW - Truck Scan Kit 1
01-ERP-0801 85,20085,2004x4 3/4Ton Trucks (2) n/a
01-ERP-0803 23,75023,750Swap Loader n/a
01-ERP-0807 34,20034,200Trucksters (3) n/a
01-ERP-0810 92,70092,700Large Turf Mower n/a
01-ERP-0812 45,00045,000Stump Cutter n/a
01-ERP-0814 10,00010,000Trailer Flatbed n/a
01-ERP-0815 32,00032,000Skid Loader n/a
01-ERP-0816 63,30063,300Toolcat n/a
4,575,4501,859,200 1,049,950 542,800 677,600 445,900Equipment Replacement Fund Total
RF - Refuse Fund
01-ERP-0803 71,25071,250Swap Loader n/a
01-ERP-0900 270,300270,300Refuse Truck (RAP-R) (2) n/a
01-ERP-0901 101,600101,600Refuse Truck (Rear-L) n/a
443,150101,600 71,250 270,300RF - Refuse Fund Total
SF - Sanitary Sewer Fund
01-ERP-0552 425,000425,000Jet Vactor n/a
01-ERP-0555 36,00036,000Generator (2) n/a
01-ERP-0559 70,00070,000SCADA Upgrade 1
531,000531,000SF - Sanitary Sewer Fund Total
WF - Water Fund
01-ERP-0500 32,00032,0003/4 Ton Truck n/a
01-ERP-0509 100,000100,000Water Treatment Plant 1
01-ERP-0559 90,00090,000SCADA Upgrade 1
222,000222,000WF - Water Fund Total
5,897,1342,768,017 1,192,517 542,800 677,600 716,200GRAND TOTAL
Wednesday, July 13, 2016