3.8. SR 05-19-2008`Elk REQUEST FOR ACTION
~_
River
To Item Number
Ci ~ Council 3.8.
Agenda Section Meeting Date Prepared by
Consent Ma ~ 19, 2008 Tim Simon, Finance Director
Item Description Reviewed by
Establishment of an F,quipment Replacement Fund and Lori ohnson, Citv Administrator
Resolution Authoxizuig a'Txansfex From the Capital Outlay Reviewed by
Reserve Fund to the Equipment Replacement Fund
Action Requested
Council is asked to approve the establishment of the equipment replacement fund and authorize a
transfer to provide funding.
Background/Discussion
On b4ay 5, 2008, the City Council reviewed the establishing of an equipment replacement fund to provide
a long-term funding source fox the City capital equipment needs. The equipment replacement fund will
be used to account fox the purchase and replacement of the City's equipment. A partion of the cost evill
be recovered from the departments based on a pro-rated share of the next ten year's replacements, which
will be updated annually.
The City's fleet committee will also meet regularly to continually update esthnates and work with the
finance department to ensure we maintain the appropriate cash flow levels in all forecasts. As part of the
budget process fox 2009 we will determine how much can be charged to the departments in the general
fund and adjust accordingly.
Financial Impact
Will be part of the 2009 budget process. The initial uansfex is required to cash flow the purchases since
the other funding sources will be received over a 12-month period.
Attachments
• Resolution authorizing a transfer from the capital outlay reserve fund to the equipment
replacement fund
Action Motion by Second by Vote
Follow Up
C:\Documents and Settings\jmillei\Local Settings\'1'empoxazy Internet Pdes\OLK3E\equipmen¢eplacementfund.doc
RESOLUTION 08 -
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE CAPITAL OUTLAY
RESERVE FUND TO THE EQUIPMENT REPLACEMENT FUND
WHEREAS, 'The City Council approved establishing the equipment replacement fund on May 12,
2008, and,
WHEREAS, 'The City Council has reviewed the request and determined it to be a sound financial
practice; and,
WHEREAS, It has been determined that $1,000,000 should be transferred out of the Capital
Outlay Reserve Fund to provide funding fox the Equipment Replacement Fund;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Ciry of Elk River
makes the following transfer of funds from the Capital Outlay Reserve Fund:
Equipment Replacement Fund $1,000,000
Passed and adopted this 19`h day of May 2008.
Stephanie K1ixlzing, Mayor
A`1"TEST:
Tina Allard, City Clerk
C:AUocumenCS and Settings\jmillex\Local Secti~gs'\Tempoiary Intunet Files\OLK3S\egwpmenh-eplacemenrf~nddoe