CR 93-174 Adopt Equipment Replacement
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. September 30, 1993 ,y o P K \ "" Council Report #93 -174
ADOPT EQUIPMENT REPLACEMENT PLAN 1994-1998
ProDosed Action.
Staff recommends adoption of the following motion: "Move to adopt the 1994-1998 Equipment
Replacement Plan. "
Overview.
The plan is a detailed summary of the next five years of a 20 year schedule listing replacement of City
equipment for all funds. The items which are funded in the Equipment Replacement Fund 202 derive
their funds from the tax levy and support General Fund activities. Other items are funded from the
respective operations to which the items are assigned.
Primary Issues To Consider.
0 Is the 20 year schedule, especially the first five years, on target?
. 0 Does the annual levy remain constant.
SUDDortim! Information.
0 Agenda - Council preliminary review August 10, 1993.
0 Proposed Equipment Replacement Plan 1994-1998.
0 Letter from Fire Chief
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. Adopt Equipment Replacement Plan 1994-1998
Report 93-174
Page 2
Back2:ronnd.
The Equipment Replacement Plan has two main purposes:
1, A long range systematic planning guide.
2. Provides a method for projecting funding to smooth out large swings in the annual levy.
The funding requirements are calculated using an estimated replacement date for each item with a 3%
inflation factor.
Replacement dates are the best estimate at the time the schedule is developed. The dates are hot absolute
and can be advanced or delayed depending on the useful life of an item which is reviewed annually.
There are nine items delayed and one item eliminated in this document from last yearts document. The
Ultimap in the Engineering Department will not be replaced (was estimated to cost $81,500). Six items
are delayed two years and three items are delayed one year, with a reduced estimate cost for the nine
. items of$16,000. The attached letter from the Fire Department proposes to delay two additional units.
The average annual funding need on the current 20 year schedule is $443,000 for Fund 202 - Equipment
Replacement Fund. Fund 202 revenue for 1994 is budgeted from three sources:
Tax Levy $400,000
Interest Earned 13,000
Sale of Equipment 20,000
No new item may be added to the schedule until it is first approved in the operating budget.
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CITYOF HOPKINS
CAPITAL EQUIPMENT REPLACEMENT PLAN
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Council Preliminary Review August 10, 1993
-5 Year (1994-1998) Expen~iture Summary
5 Year (1994~1998) Funding,Summary
20 Year Equipment Replacement Schedule
Inventory of Present Equipment& Buildings.
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FUNDING SOURCES ,.
Current Revenues - General Fund C.R.
Equipment Replacement Fund E.R.
Water Fund W.F.
Sewer Fund S.F.
Refuse Fund R.F.
Pavilion Fund P.A.
Housing & Redevelopment Authority BRA
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To: John Schedler, Finance Director
From: Dave Klocek, Fire Chief
Date: Thursday, September 30, 1993
Subject: Amendments to equipment replacement plan
I am recommending that two items within the proposed equipment replacement plan be
delayed for one year due to the condition and needs of the department.
The ambulance van is currently slated for replacement in 1994. Our review of the
vehicle and discussions with Norb Kerber have indicated that the van is in adequate
condition to allow for it to remain in service for at least one more year. At the
conclusion of its useful life, it should be reviewed with Public Works to determine if any
other department can utilize the vehicle for their purposes. This would be consistent
. with past practice wherein the last two ambulance vans have been and continue to be
used by other departments.
The other item scheduled for replacement is the 4 x 4 crew cab pickup. Our review of
this vehicle also indicates its useful life to be sufficient for at least one more year of
service.
We will review both of these vehicles next year to determine the need for replacement.
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