CCP 11-27-2006 - Laserfiche WebLink

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. The current process for funding capital cquipment is inconsistent, diiIicult to understand, . and difficult to explain. . It is very dit1icult to documcnt how much each city has contributed to equipment purchascs in the past. . The CUlTent system subjects membcr cities to large cbbs and t1o\Vs in capital spending from year to year. dcpending on whether or not a large piece of cquipment nceds to be funded. . It is not always c1car to whom the equipment bclongs: to a specific city or citics, to the department, or to a combination of both'? . Becausc it is not clear who the cquipment belongs to, it is not clear who should keep proceeds from a salc. . This system does not acknowledge thc rcality that while a picce of equipment may be housed in a certain station, the reality is that all equipmcnt is available to rcspond to calls in all three cities, and they arc used in all thrce cities. Under the ne\\! formula, thc following advantages would rcsult: . Capital cxpcnditures would be morc "even" ovcr time and largc peaks could bc avoided, allowing for easier tinancial planning and budgeting. . All cquipmcnt would clearly be assets of the LJFO and its member cities based on a clear financing fonnula. . This would acknowledgc that all LIFO equipmcnt is used in all thrce member citics. . The 11ll1ding fOlllmla would he consistent, easy to understand, and easy to explain. . Under thc "old" formula, Arden Hills would have some major expcnditures in the near illture. For example, Engine #3 is proposcd for rcplacement in 2008 at a cost of $4GO,000. Under the new t()JlllUIa, we would pay roughly 27.1 o,/il of that Engine rather than the full cost. REQUESTED ACTION Provide direction to stan' and the IJFD Liaison regarding capital cquipment financing: . Concurrcnce with thc formula being applied to capital purchases . Concurrence wi th the "catch up" approach Thc LJFD Board of Directors will meet again Septcmber 20th and will be discussing the proposal. Council direction is nceded as to whether or not the city of Arden Hills will support this proposed change, so that can be communicatcd to the Board. In the draft capital budget attached, the City of Arden Hills share of the cost for ncw 800 MHz radios is not retlected. I anticipate we \vill be paying that this year. This drail also docs not contemplate the "catch-up" payments discussed in the memorandum. \'.rnl'lro-inel\anknhills\aumird 'ny Admini'lIat<lr',l'oJIl'C SaviCL's and UFI)\::'O()(>\<)-14-1)6 Memo RF UFIl Capital Finaneing,d<lc .