IV.4. Amend 2023-2027 Equipment Replacement Plan; Bishop
CITY OF HOPKINS
City Council Report 2023-018
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: February 7, 2023
Subject: Amend 2023-2027 Equipment Replacement Plan
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO approve an amendment to the 2023-2027 Equipment Replacement Plan
increasing the cost of the log truck by $68,000.
OVERVIEW
The City Council approved the 2023-2027 Equipment Replacement Plan (ERP) on
September 6, 2022. The approved ERP included the purchase of a log truck at an
estimated cost of $163,600. Staff has obtained quotes for the purchase of a new truck,
which are higher than estimated in the ERP. The difference is price is attributed to
supply chain issues and rising inflation.
The actual price of the truck will be $231,600, which is a $68,000 increase from the
ERP. The estimated trade in value of the current truck is $30,000. The net cost of a new
truck after trade in would be a $38,000 increase from projected. The log truck will be
funded through equipment certificates as part of the 2023A GO bonds.
SUPPORTING INFORMATION
• Project Detail for 01-ERP-804 (as amended)
• Projected Cashflows (as amended)
Finance Department
EQUIPMENT REPLACEMENT PLAN
City of Hopkins, MN - ERP Contact Public Works Director
2023 2027
thru Department Public Works: Parks/Forestry
Description
Truck is used for hauling brush and logs in the Forestry department.
Current vehicle: 2007 International LP4600 Log Truck (#811)
Project #01-ERP-0804
Priority n/a
Justification
Budget Impact/Other
Increased amount by $68,000 from original 2023-2027 ERP to reflect actual cost. Amendment approved on February 7, 2023.
Useful Life 15 years
Project Name Log Truck Category Vehicles
Type Equipment
Future
Total Project Cost:$591,484
Total2023 2024 2025 2026 2027Expenditures
231,600231,600Vehicles
231,600 231,600Total
Total2023 2024 2025 2026 2027Funding Sources
115,800115,800Equipment Replacement Fund
115,800115,800RF - Refuse Fund
231,600 231,600Total
Wednesday, February 1, 2023
2023 2024
Beginning Fund Balance 990,652 560,917
Revenues & Other Financing Sources
Tax Levy 250,000 250,000
Equipment Charges 709,940 752,536
Sale of Equipment 50,000 35,000
Interest Earnings 9,906 5,609
Equipment Certificates (Bonds)100,800 318,100
Transfer In 220,564 -
Total Revenue & Other Financing Sources 1,341,210 1,361,245
Expenditures & Other Financing Uses
Current Expenditures 35,600 35,956
Capital Projects
Community Services - Activity Center - -
Community Services - Information Technology 416,085 255,954
Fire Vehicles & Equipment 156,000 -
Police Vehicles & Equipment 948,160 311,500
Public Works: Parks/Forestry 151,200 10,000
Public Works: Streets/Traffic 63,900 318,100
Total Expenditures and Other Financing Sources 1,770,945 931,510
Increase (Decrease) in Fund Balance (429,735) 429,735
Projected Ending Fund Balance 560,917 990,652
Equipment Replacement Fund - Projected Cash Flows
As Amended on February 7, 2023