Memo Captial Aquistion PlanTY 0
Ot CI e F 0
MINNESOTA g
DATE: 28 October 2013
TO- Lori Johnson, City Administrator
MEMORANDUM
FROM, Dan Jordet, Administrative Services Director
RE, Capital Acquisition Plan for Vehicles 2014 — 2023
Attached is a plan for acquisition of vehicles and rolling stock for both fleet additions and replacement
of existing vehicles. Additionally, four scenarios for financing those acquisitions are attached. They
assume that the City will continue to make an annual property tax levy for vehicle replacements through
2023.
For 2014 it is anticipated that one vehicle will be replaced; PW #16, a 1999 asphalt roller. Three other
vehicles will be purchased to supplement the existing fleet. One is a dump box trailer for Parks which
will take the place of an additional dump box truck such as PW #38, one is a % ton extended cab
pickup truck with a plow for Parks, and the third is an extended cab pickup truck for Utilities taking the
place of the proposed Utilities Field Vehicle. That vehicle has been pushed back to 2016 for further
consideration and discussion. sion. The budgeted total projected cost of 2014 vehicle replacements and
additions is $ 120,200.
Options I through 4 of the Cash Flow History and Projections make the following assumptions:
0 Property tax levy will be used as the primary source of funding for vehicles.
0 Vehicles will be acquired for cash and financing will not be considered.
0 The Capital Equipment Revolving Fund (CERF) will account for these activities.
0 The same acquisition schedule is followed for each option.
Option I shows that with no increase in the property tax levy from 2015 through 2023 the CERF will be
in a deficit position of ($ 898,633) at the end of that period. While it is not a realistic option, it is
included for reference. The total of levies for the entire period is $ 1,925,000.
Option 2 shows the acquisitions being financed by a steadily increasing property tax levy. Each year's
CERF levy increases by 11,85% which translates to an overall increase of from 0.42% to 0.84% in the
overall property tax levy. This assumes that the overall property tax levy increases by 2.50% per year.
This scenario puts the fund into deficit position by as much as $ 358,000, during the program but leaves
the fund with an ending balance of $ 303,1 2. The total of levies for the entire period is $ 3,112,513.
Option 3 shows the property tax levy being made at a level each year which would cover the costs
projected by the program. These levies would range from a high of 6.60% of the overall tax levy in
2016 to a decrease of (6.80%) in the overall levy in 2022. Again, the fund would have a cash balance
of $ 320,051 at the end of the program and would not go into a deficit during any of the program years.
It would levy a total of $ 3,113,495.
Option 4 shows an initial increase in the property tax levy of 2.87% of the total levy, or about 130,500
from 2014 to 2015. The levy would then remain the same for the balance of the circle. It would require
a fund deficit in one year of only ($46,542) and would produce an ending cash balance of $ 300,123,
This program option would levy $ 3,100,000 over the life of the program.
The chart below summarizes the salient points of each option.
Fund 206 d Capital Equipment Replacemnt Fund (CERF)
Ending Cash lowest Program
Total levies
Calance
Balance
Option 1 -fro Increase
11925,000
$
(898,633)
$
(898.1633)
Option 2 - Steady Increase
$ 311121513
3031102
(358,032)
Option 3 - Need Only
$ 31113,495
320,051
891471
Option 4- Flat Levy
3,100, 0
300,133
(45,,652)
City of Otsego - Capital Assets - Vehicles (by Year)
I October20113 I
Unit ##
Department
Assignment
Description
Descri
Mileage Hours Year
Purchased
Purchased
Cost
Add
Equipment
Total
Purchase
Scheduled
Replacement
Replacement
Cost
PW #16
Street
1999 Multi -Quip VR -36H Asphalt Roller
2005
S 3,000
$
$ 3,000
2014
$
20,000
ADDITION
Parks
Durnp Box Trailer
2014
$ 12,000
$
$ 12.000
2029
$
16,150
ADDITION
Parks
2014 3/4 ton extended cab pickup wlp!ovi
2014
$ 37,000
$
$ 37,000
2024
$
49,750
ADDITION
Utilities
2014 Extended Cab Pickupw1equipment boxes
2014
$ 32,000
$
$ 32,000
2024
$
34,300
2014
$
120,200
PW#14
Parks
2010 John Deere 320D Skid Loader - singles eyed
430
2010
$ 33.156
$
$ 33.156
2015
$
20.000
PW #45
Parks
2010 John Deere Z925A Ztrak Mower - zero turn
602
2010
$ 9.862
$
$ 9.862
2015.
$
12,000
PVV;91 I
Street
2000 International Tandem Duni p Truck, Plow
61348
4301
2000
$ 112,480
$ -
$ 112,480
2016
$
200,000
PW #2
Street
1995 International S/A Durn2 Truck, Plow
47010
3738
2005
$ 37,649
$ -
S 37,649
2015
$
180,000
PW #46
Street
2005 CAT 908 Loader
2689
2010
$ 53,331
$ -
S 53,331
2015
$
75,000
PW #24
Street
1970 Schmidt Snowblower
$ -
$ -
2015
$
60,0010
BD#17
Street
2006 Chevrolet extended cab pickup
70676
3585
2005
$ 19,706
$ -
$ 19.706
2015
$
25,000
PW #6
Utilities
2005 Chevrolet extended cab pickup
81850
2005
$ 22,080
$ -
$ 22,080
2015
$
35.000
2015
$
597,000
GD#20
Inspections
206 Ford Explorer
2006
$ 20,153
$ -
$ 20,163
2016
$
30,000
PW #38
Parks
2005 Ford F450 truck vild u rn p and pl ow "Ti he B I a ck Tru ff'
41702
2127
2007
S 32.500
$ -
$ 32.500
2016
$
45.000
PW #17
Parks
2005 C h ev ro! e t 2500 314 ton crew cab p] cku p
69242
225
2005
$ 23.953
$
$ 23.953
2016
$
35.000
PW 441
Parks
1998 Toro HL4800 Lam Sweeper
404
2009
$ 4.499
$ -
$ 4,499
2018
$
25,000
PW #48
Parks
2011 John Deere Gator TX Utility Vehicle
419
2011
$ 8,416
$ -
S 8,416
2016
S
20.000
PW #21
Street
2000 CAT IT28 Loader
5594
2000
$ 149.700
$ -
$ 149.700
2016
$
150.000
PW 94
Street
2006 Ford F-350 light duty, truck w1dump body and plow
511681
3244
2005
$ 36,040
$ -
$ 36.040
2016
$
45,000
PW#13
Street
2008 Felling TfalilerT14
2005
$ 4,484
$ -
$ 4,484
2016
$
10,000
ADDITION
Utilities
Utilities Field Vehicle
2016
$ 74,200
$ -
$ 74,200
2028
$
105,800
PW #28
U61jues
2002 Ford F-350 light duty truck wiflalbed, crane & P!0%y
68918
2002
$ 32,955
$ 14.963
S 47,918
2016
$
50,000
PW #18
UbliVes
2006 Chevero!et 1500 Ext. cab pickup
63867
1.3
2006
$ 19,706
$ -
$ 19,705
2016
$
30,000
2016
$
545,800
PW #37
Parks
2007 1545 John Deere Mwier, Snowbflower - wide area
811
2007
$ 19,194
$ -
$ 19,1 W04
2017
$
30.0003
BD#19
Parks
2006 Chevrolet extended cab pIckup
73109
2005
$ 21,361
$ -
$ 21,361
2017
$
25,000
-*PW 422
Parks
2012 John Deere Z926A - zero turn
271
2012
$ 10,200
$ -
$ 10,200
2017
$
11,000
PW #1
Street
2007 Elgin street sweeper
6899
1854
2041
$ 77,484
$ -
$ 77,484
2017
$
180.000
PW #20
Street
Atlas Capco Afr Compressor
834
2011
$ 10.270
$ -
$ 10,270
2017
$
1,5,040
2017
$
261,000
PW#49
Parks
2006 Felling tandem axel moWng trailer
2011
$ 6,000
$
$ 5,000
2018
$
10,000
I'M #3
Street
2000 Sterling 7501 SIA Dump wlplow & wino
44458
4440
2012
$ 37,433
$
$ 37.433
2018
$
180,000
PW#15
Street
2003 Steftg SIA Dump Truck, Plow
32664
1394
2003
$ 135.216
$
$ 135.216
2018
$
180,000
PW #35
Street
2006 5425 John Deere Tractor, Mower, Broom
2073
2006
$ 60,553
$ 13,146
$ 73,699
2018
$
70,000
2018
$
440,000
PW #40
Street
1999 Ford F578 Boom Truek
104704
2009
$ 9,676
$ -
$ 9.676
2019
$
150.000
PW #30
Street
2006 4720 John Deere Tractor, Mower, Plow
2218
2006
$ 49,908
$ -
$ 49.908
2019
$
40.000
2019
$
190,000
PW #42
Street
2002 Sterling L8511 Dump Truck, Plow
16681
2010
$ 62,983
$ -
$ 52,983
2020
$
190,000
PW#50
Parks
2013 GMG Slerra 3500 1 ton 4X4 w1 low
2013
$ 31.985
$
$ 31.985
2021
$
42,000
PW #5
Street
2001 CAT 143H Road Grader
5330
2013
$ 116.227
$ -
$ 116,227
2021
$
275,000
PW #10
Street
2013 Ford F150 extended cab 4X4
2524
2013
$ 25,600
$ -
$ 25,600
2021
$
35,000
PW#52
Street
2013 Ford F150 extended cab 4X4
1007
2013
$ 23.900
$
$ 23,900
2021
$
35,000
PW#12
WiUes
2013 F250 4X4 w/plow
2136
80
2013
$ 22.300
$ 22,300
2021
$
35.GOO
2021
$
422,000
PW#7
Street
2012 Ford F350 Pickup wlplow
9141
598
2012
$ 34,616
$
$ 34,516
2022
$
40,000
PW #31
Street
2012 Wanco Radar/Speed Trailer
2012
$ 10.313
$
$ 10.313
2022
$
15,000
2022
$
66,000
PW 951
Parks
2012 Toro 4100 wide area movier
2013
$ 64,665
$
$ 64,885
2023
$
86,900
PW 439
street
2008 Sterling L8500 Dump Truck, Plow
13056
210
2008
$ 68,028
$
$ 68,028
2023
$
200,000
2023
$
286,90D
PW ##23
Street
2004 WRT Rubber Tire Roller
2006
$ 12.500
$
$ 12,500
2024
$
18.000
PW #43
Street
2010 Mack GU713 Tandem Dump Truck, Plow
15402
887
2010
$ 197.609
$ -
$ 197,609
2025
$
200,000.
PW #a
Street
2010 CAT 3050 Excavator
324
2010
$ 55,286
$ -
$ 55,288
2025
$
80,000
-PW #44
Utilities
2010 Mack GU713 Jet -Vac
4650
2010
$ 260,514
$ -
$ 260.514
2025
S
400.000
#47
Parks
20114720 John Deere Tractor
683
2011
$ 36.011
$ -
$ 36.011
2026
$
50,000
-PW
PW #29
Street
1999 Felling F T20 Equipment Trailer - NO REPLACE
1999
$ 10.428
$ -
$ 10,428
N/A
PW #19
Wifles
Power Units - Fafl, ty Backup Generators
Beyond 2023
$
7481000
TOTALS
$
3.855,900
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