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HomeMy WebLinkAboutAdoption of the Tree Maintenance Fund Capital Impr_11.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Tree Maintenance Fund Capital Improvement Plan (CIP) for FY14-18. AGENDA ITEM TYPE: Action MEETING DATE: November 26, 2012 RECOMMENDATION: Adoption of the Tree Maintenance Fund Capital Improvement Plan (CIP) for FY14-18. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The Tree Maintenance District supports the capital purchases and operations of our Forestry division. The division has a small number of equipment needs. During the last few budget processes, they have opted to “push-out” the replacement of their Chipper (FOR06). Though scheduled for FY13, it was not budgeted or is expected to need to be replaced in the current year and has been pushed to FY14 of the plan. Their Half-Ton Truck replacement (FOR07) has been pushed to replacement in FY18, in accordance with our newly adopted Vehicle Replacement Policy changes. 301 UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY14. Report compiled on: November 19, 2012 Attached: Tree Maintenance Fund CIP 302 Tree Maintenance DistrictCapital Improvement PlanFinancial Summary Current YearFY13 FY14 FY15 FY16 FY17 FY18UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 45,649$           67,649$               22,157$           44,377$       66,819$        89,486$       ‐$                Plus:  Tree Mtc Revenues Dedicated to CIP 22,000$           22,000$               22,220$           22,442$       22,667$        22,893$       ‐$                Less:  Scheduled CIP Project Costs‐$                  (67,492)$               ‐$                  ‐$               ‐$               (26,000)$      ‐$              Projected Year‐End Cash Dedicated to CIP 67,649$           22,157$               44,377$           66,819$       89,486$        86,379$       ‐$              Assumptions Made for Revenue Estimates: Current YearFY13 FY14 FY15 FY16 FY17 FY18Estimated Annual Tree Mtc Revenues 400,000$            400,000$               400,000$           404,000$       408,040$        412,120$          Estimated Annual Increase ‐ Attributed to Annexations‐                       0% 1% 1% 1% 1%Total Estimated Revenues 400,000$            400,000$               404,000$           408,040$       412,120$        416,242$        Current Revenues Dedicated to CIP % 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%  Plus:  Increase Dedicated to CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%  Total % Dedicated to CIP 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP 22,000$              22,000$                  22,220$             22,442$         22,667$          22,893$          80,00070,00060,00050,00040,00030,00020,00010,0000FY14 FY15 FY16 FY17 FY18 UnscheduledTree Maintenance Projects & Equipment303 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY14FY16UnscheduledFY15FY17FY18Tree Maintenance DistrictFOR06FORESTRYCHIPPER$67,492FOR07FORESTRY1/2 TON TRUCK$26,000Summary for  Tree Maintenance District (2 items)Totals by year:$67,492FY14FY15FY16UnscheduledFY18$26,000FY17304 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR06 DEPARTMENT FORESTRY PROJECT NAME CHIPPER FY14 $67,492 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This a request to replace a 2000 model chipper.This would be a scheduled equipment replacement as this chipper would be over 12 years old. This equipment would be powered by an alternative fuel such as BioDiesel. ALTERNATIVES CONSIDERED Continue to use older, less efficient model. Lease. As directed by Commission. ADVANTAGES OF APPROVAL Replacing the old chipper will provide the division with more reliable equipment, improved safty, use of alternative fuels, lower exhaust emissions, and more production due to improvements in design. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: no increase. A new chipper would be cheaper than the existing repairs required on the older model currently in use. FUNDING SOURCES 100% Tree Maintenance District Fund Revenue New Replacement Equipment Project FY17 FY18 305 CIP Project Fund Tree Maintenance District PROJECT NUMBER FOR07 DEPARTMENT FORESTRY PROJECT NAME 1/2 TON TRUCK FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT <div>This is a request to replace a 1999 pickup. This would be a scheduled replacement as this truck will be 19 years old. This truck would be passed on to another Division such as Parks to be used by seasonal employees.</div> ALTERNATIVES CONSIDERED Continue to use older, less fuel efficient model. Lease. As directed by Commission. ADVANTAGES OF APPROVAL Replacing this equipment provide the division with more reliable equipment, imporved safty, use of alternative fuels, lower exhaust emissions. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Tree Maintenance District Fund Revenue New Replacement Equipment Project FY17 FY18 $26,000 306