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CR 98-22 Approve Budget for Purchase of FD VehicleFebruary 3,1998 K k Proposed Action Council Report 98 - 022 APPROVE BUDGET FOR PURCHASE OF VEHICLE FOR FIRE DEPARTMENT Staff recommends adoption of the following: Move to approve a budget adjustment of $18,000 in the Equipment Replacement Fund to purchase a vehicle for the Fire Department. Adoption of this motion will result itt staff moving forward with the purchase of a vehicle and adjusting the capital replacement plan document to include this vehicle. Overview Currently the Fire Department inherits a used squad car once every five years from the police department. In reviewing our past arrangement for replacing vehicles, it has been determined that the reliability and performance of the old police squad cars are not adequate . for fire use. Squad cars that have actual mileage of 50,000 really have engine use of 100,000 miles because of the idling that the police squads are subjected to. There is a higher maintenance associated with these vehicles and therefore they are unavailable for use by the fire department. Primary Issues to Consider • One solution to the problem is to include a vehicle for the Fire Department in the replacement schedule. The cost to do this is approximately $3,400 a year. Currently the Fire Department is spending $1,500 to $4,500 a year on maintenance of a vehicle. • Another solution is to speed up the replacement schedule of the police squads to provide the fire department with lower mileage vehicles. This would most likely be a temporary fix and would still increase costs overall. • Currently the fund balance in the equipment replacement fund is $961,000, which is double the amount of average yearly expenditures. In reviewing the future uses of this fund and the revenue sources, I have determined that there would not be a need for increased tax revenues until the year 2004. We like to maintain a higher fund balance in the equipment replacement fund to enable us to react to unforeseen expenditures. The additional cost for the fire vehicle could be funded from undesignated fund balance in the equipment replacement fund. Staff Recommendation Finance recommends including the fire vehicle in the replacement schedule for future years and approving a budget adjustment of $18,000 in the Equipment Replacement Fund, to purchase a vehicle this year, using available fund balance in that fund. Supporting Information • Five Year Equipment Replacement Plan Expenditure Summary • Six Year Equipment Replacement Funding Summary Lori"YagEr Finance Director CAPITAL EQUIPMENT REPLACEMENT PLAN FIVE YEAR EXPENDITURE SUMMARY PROGRAM FUNDING CATEGORY PROTECT TIT] R SGIIRC;F 1Q,pg 1999 2E82 20.Q1 2002 20.01 C-1 Luveme Pumper ER. 318,500 Stuphen Aerial Truck E.R. 687,000 02 Marked Patrol Vehicles (11) E.R. 56,400 58,800 91,200 62,800 65,800 34,200 C-3 Parking Enforcement Vehicle E.R. 14,000 C-4 Utility 4x4 E.R. 29,800 C-5 - Administration Vehicles (5) ER. 18,000 18,600 19,100 19,700 20,300 20,900 Copier - Fire Station ES. 7,400 C-6 Radio System E.R. 470,800 C -7 Body Amcor E.R. 5,800 C-8 Police Computer ER. 220,000 C -9 Police Copy Machine E.R. 14,200 C -10 Police Logging Recorder E.R. 25,000 29,000 C-1 1 4X4 One Ton Truck ER. 22,000 C-12 One Ton Dump Truck (2) E.R. 30,500 G13 Single Axle Dump Truck E.R 75,000 C -14 Tandem Dump Truck E.A. 83,000 015 Skid Loader ER. 32,500 016 Grader E.R. 80,000 G17 Sweeper ER. 115,300 Striper ER. 10,100 018 1/2 Ton Pickup E.R. 15,900 1/2 Ton Truck E.R. 20,300 G19 3/4 Ton Utility Truck E.R. 21,000 020 Tractor ER. 32,700 021 Truckster (3) E.R. 12,700 Riding Mowers (2) E.R. 13,400 G22 Riding Mowers (2) E.R 11,800 023 Gang Mower E.R. 42,300 C -24 Turf Sweeper E.R 10,900 Brush Chipper E.R 19,100 025 City Hall Main Copy Machine (2) E.R. 19,000 35,000 20,800 026 City Hall Micro Network Upgrade E.R. 10,000 10,000 10,000 027 Optical Scanner ER. 6,000 6,800 028 Election Equipment E.R. 68,000 029 Telephone System E.R. 102,700 029 Telephone System W.F. 8,000 G29 Telephone System S.F. 8,000 4X4 1/2 Ton Truck -BRA HRA 22,800 C -30 4X4 3/4 Ton Dump Truck W.F. 21,900 G31 Air Compressor W.F. 17,700 032 Public Works Copy Machine W.F. 9,100 G33 let Vactor S.F. 100,000 C -34 Refuse Track R.F. 127,700 NEW Marked Fire Vehicle E.R. 18,000 18,000 TOTAL CAPITAL EQUIPMENT REPLACEMENT PROGRAM 479,900 344,700 470,900 776,500 631,100 892,200 FUNDING: EQUIPMENT REPLACEMENT FUND BALANCE (5,100) (268,000) (145,100) 291,500 112,400 384,400 HRA FUND 22,800 ENTERPRISE FUND 127,700 131,000 33,700 LEVY 485,000 485,000 485,000 485,000 485,000 485,000 ENDING FUND BALANCE 966,100 1,234,100 1,379,200 1,087,700 975,300 590,900 B SIX YEAR FUNDING SUMMARY EQUIPMENT REPLACEMENT FUND 1998 1999 2000 2001 2002 2003 2004 BEGINNING YEAR FUND BALANCE $962,000 $1,012,200 51,307,300 $1,482,400 $1,226,400 $1,149,400 $818,000 TAX LEVY $485,000 $485,000 $485,000 5485,000 5485,000 $485,000 $485,000 OTHER INCOME 537,000 537, 000 $40,000 $45,000 $45,000 $45,000 580,000 TOTAL $522,000 $522,000 5525,000 $530,000 5530,000 $530,000 $565,000 OPERATING EXPENSES $9,900 59,900 59,900 510,000 510,000 $10,000 511,000 CAPITAL PURCHASES $461,900 $217,000 $340,000 5776,000 $597,000 $851,400 $585,100 TOTAL $471,800 $228,900 $349,900 5786,000 5607,000 5861,400 5576,100 ENDING YEAR FUND BALANCE $1,012,200 $1,307,300 $1,482,400 $1,226,400 $1,149,400 $818,000 5806,900 CASH BALANCE END OF YEAR $838,000 $1,133,100 $1,308,200 $1,052,200 $975,200 $843,800 $632,700