Memo - Equipment Replacement Plan 2006-2010
CITY OF HOPKINS
I FINANCE DEPARTMENT I
MEMORANDUM
Date:
To:
July 8, 2005
Mayor & City Council
Christine Harkess, Finance Director
From:
Subject: 2006-2010 EQUIPMENT REPLACEMENT PLAN
Overview
The City of Hopkins is beginning the process of establishing the 2006-2010 equipment
replacement plan. Every year the city council reviews with the city manager and staff, the
equipment planned for replacement for the next five years. The goal is to ensure the city's
priorities and objectives are being met and the funding sources are reasonable and available.
Departments were once again asked to assess the equipment planned for replacement, evaluate
the estimated cost and life expectancy of the equipment with the intent to prolong equipment life
expectancy when practical and to refurbishing equipment instead of replacing it.
Through a combination of several equipment changes and a better estimate of costs, departments
were successful in accomplishing this goal. Currently the overall twenty-year replacement costs
for the equipment replacement fund show increased costs of $410,800 from the 2005 plan
primarily due to increased costs of equipment and inflation. Included in the ERP draft is an
explanation of the changes that are considered for implementation.
ERP Goals
. Maintain the integrity, reliability and safety of city equipment.
. Provide funding for replacement of current equipment as needed.
. Forecast funding needs and tax implications to assure strong long-term financial stability.
Attached is a draft of the 2006-2010 equipment replacement plan.