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<br />The trade-in values have been changed to reflect which equipment is being replace in <br />each year. These values are conservative, meaning lower than existing Kelley Blue Book <br />Private Party values. <br /> <br />The funding plan is based on the existing plan where we increase the transfer from the <br />General Fund tax levy by $5,000 again in 2021, and 3% per year thereafter. This plan <br />also anticipates transfers from the Water and Sewer Funds in the amount of $11,000 total <br />($5,500 each) for 2020 and increasing that by 3% per year thereafter. <br /> <br />With these assumptions, we are able to balance out all expenditures through 2029 with a <br />minor dip into negative fund balance in 2028. This seems reasonable given the revenue <br />constraints that we have imposed on ourselves. The City Council will certainly have <br />more flexibility in how to fund capital replacements as the debt service tax levy drops to <br />zero from the current $457,000 by 2029. <br /> <br />The other thought from the Public Works director is in regards to bobcat replacements. <br />There was a program several years ago for a guaranteed trade-in on an annual basis that <br />would allow us to get a new piece of equipment each year for a nominal sum of around <br />expenditures and the second which turns capital expenditures into much smaller <br />operating budget expenditures. We are not certain this program will be available when <br />we plan to replace the bobcats, but it is worth consideration if it does. <br /> <br />With all these considerations, staff strongly recommends that the City Council authorize <br />the purchase of three pickups from the State Contract in 2020. <br /> <br /> <br />Attachment: Vehicle Replacement Spreadsheet <br /> <br /> <br /> <br />82 <br /> <br />