CR 2000-140 Adopt Equipment Replacment Plan 2001-2005
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August 15, 2000 Council Report 00-140
ADOPT EQUIPMENT REPLACEMENT PLAN 2001-2005
Proposed Action
S1affrecommends adoption of the following: Move to adopt the 2001-2005 Equipment
Replacement Plan.
Overview
The equipment replacement plan is a detailed summary of the next five years of a twenty
year replacement schedule, for most equipment of the City of Hopkins. General and Special
Revenue fund equipment items are placed in the Equipment Replacement Fund budget
which derives its revenues from service charges to the General and Special Revenue funds,
equipment sales and interest eamings. The Enterprise fund equipment in the plan is placed
in the individual enterprise fund budgets, in the year in which the equipment is to be
purchased.
Primarv Issues to Consider
. . Should the annual service charges to the general and special revenue funds be
increased?
. What changes have occurred in the equipment replacement plan since last year?
Staff Recommendation
Finance recommends adoption of the 2001-2005 Equipment Replacement Plan.
Supportine: Information
. Equipment Replacement Plan 2001-2005
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Lori Yager I
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Finance Director i/
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. Should the mmual service charges to the general and special revenue funds be
increased?
After forecasting the future equipment needs of the general and special revenue funds it
has been determined that a service charge increase of $8,000 a year will help level off
the need for larger increases in the future and also sustain the equipment fund until
2020. This $8,000 increase will increase the overall general fund budget by about the
same amount.
What changes have occurred in the Equipment Replacement Plan since the last year?
Highlights of changes fTOm last year:
Finance: The city hall secondary copy machine was not replaced in 2000 and is
being considered for replacement in 2001. The total costs have remained
about the same at $20,000. Purchasing the copier later than planned
saves the city about $1,000 in gained interest earnings in 2000. We may
also consider leasing a copier in 200 I instead of purchasing.
Police: The K-9 squad was scheduled to be replaced in year 2000 but purchase
was deferred for one year because vehicle was still in good condition.
The logging recorder has been moved back fTOm 2005 to 2006 since it
. was not replaced until 1999.
Public Works: The purchase of a roller has been moved back one year from 2004 to
2005. The riding mower that is to be replaced in 2001 has been
increased from $15,000 to $18,000 to add 4 wheel drive for winter use in
plowing sidewalks. The hustler unit is 21 years old and in extremely
poor condition. This item has been moved up from 2005 to 2001. The
gang mower replacement cost has been increased from $42,300 to
$50,000 to reflect actual cost. The turf sweeper is in good condition and
has been moved back fTOm replacement in 2001 to 2003.
Activity Center: The addition of the copy machine and a refrigerator/freezer have been
added for replacement in 2002.
Pavilion: The ice resurfacer has been added to the equipment replacement plan. It
is due to be replaced in 2002.
Arts Center: The addition of the copy machine to be replaced in 2003.
Water Fund: The addition of a hydraulic jack hammer for the backhoe has been added
forreplacement in 2001.
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