SCC 11-17-14 Cover Memos0
CITY OF
se o
MINNESOTA
DATE: 14 November 2014
MEMORANDUM
TO: Mayor and City Council Members
Lori Johnson, City Administrator
FROM: Daniel Jordet, Administrative Services Directo
RE: CIP Meeting — Monday, November 17, 2014
Because of the City Administrator's illness we have not conferred on the final form of the presentation
materials for Monday evening's meeting. Therefore, she has asked that I distribute the materials that
have been prepared for vehicles and equipment. She will follow with a cover memorandum over the
weekend.
Those materials are attached with a short explanatory memorandum. The materials have been
prepared following consultations between the City Administrator, Street Superintendent, Utilities
Superintendent, Parks and Recreation Superintendent and me.
The materials for the 24 November 2014 CIP discussions on streets, parks and buildings will be
distributed at Monday evening's meeting.
0
CITY OF
se o
MINNESOTA
DATE: 13 November 2014
MEMORANDUM
TO: Mayor and City Council Members
Lori Johnson, City Administrator
FROM: Daniel Jordet, Administrative Services Direct
RE: Capital Improvement Plan for 2015 —VEHICLES
Attached are a number of schedules for review in finalizing the Vehicle portion of the Capital Improvement Plan
for 2015. They are:
• Schedule of Capital Assets — Vehicles by Replacement Year
• Schedule of Capital Assets — Vehicles by Classification and Rating
• Schedule of Capital Assets — Vehicles by Department Assignment and Replacement Year
• Eight sheets (A through H) detailing alternatives for financing the acquisitions
• A description of the Rating System for Medium Duty Vehicles
• Fourteen sheets, detailing the Rating for each of the Medium Duty Vehicles.
The Schedule of Capital Assets — Vehicles sheets detail the inventory of vehicles and rolling stock equipment.
The sheet detailing these assets by Replacement Year is the primary document used to determine what goes into
the CIP budget. It is supported by the other two Schedules. The same detail information is contained in those
but is sorted and listed in different ways to provide additional information about what kind of vehicles are being
considered, what is their use, what is their condition and which department uses them.
The alternatives for financing are first considered by whether they incorporate a debt levy. Schedules A — D do
not incorporate debt. Schedules E — H incorporate the issuance of $ 500,000 of equipment debt at 3% interest for
a term of 7 years. Then the schedules are shown with different assumptions about the property tax levy adopted
to fund equipment replacements.
• Schedules A and E apply an increase of 10% per year in the equipment levy beginning in 2016.
• Schedules B and F apply and increase of $ 20,000 per year for 11 years
• Schedules C and G apply increases of $ 40,000 per year through 2019 and then stabilize the levy at
$ 320,000 because $ 320,000 is the average annual need for funding
• Schedules D and H raise the levy to the average need of $ 320,000 per year beginning in 2016.
The blue highlighted line on each sheet shows the amount of capital equipment purchases for each year.
The green highlighted line on each sheet shows the cash balance at the end of each year after taxes are
collected and vehicles are purchased.
The Medium Duty Truck Rating System was used to determine the relative fitness of those vehicles and help
determine the urgency for replacement of the vehicle. Two sheets describe the parameters of the system.
The individual rating sheets show the results of applying the Medium Duty Truck Ratings criteria to the City's
current Medium Duty equipment.