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Memorandum <br /> <br /> <br />Date: November 8, 2023 <br /> <br />To: Honorable Mayor and City Council Members <br /> <br />Through: Mark Statz, City Administrator <br /> <br />From: Bruce DeJong, Finance Director <br /> <br />Item: Capital Improvement Plans Update <br /> <br /> <br />The City Administrator, Public Works Director, and Finance Director have reviewed the <br />proposed expenditures for fund 409 Î Capital Equipment Replacement Fund and 452 Î <br />City Street Projects Fund. The review was prompted by the City Council action to add <br />$25,000 to the 2024 budget to increase the transfer to the Capital Equipment <br />Replacement Fund, and more generally, by a spike in the cost of equipment, materials, <br />and labor. Recent bids on pickup trucks and street paving have made it clear that these <br />funds would not be adequate to replace our equipment and other assets over the long- <br />term, using current revenue streams. <br />A recap of changes made since the last time the equipment spreadsheet was shared with <br />the City Council back in August is a good place to start this review. <br /> <br />Equipment Replacement Fund <br />City Hall <br />Staff is still investigating new financial software solutions. Clearly, we wonÓt be able to <br />get that done in the next two months, so we have moved the funding to 2024. The <br />original estimate was for $100,000 with $50,000 coming from ARPA funding. Since we <br />have exhausted the ARPA money, we will need to budget the full amount in 2024. We <br />arenÓt sure we will need all that funding if we go with a cloud-computing solution. Most <br />of the software we are reviewing is not premise based any longer, so the initial costs <br />might be lower, but there would be a corresponding increase in annual maintenance costs <br />with a cloud computing solution. Staff is unable to project a corresponding decrease in <br />costs with Metro-INET at this time. <br /> <br />Metro-INET recommends computer equipment be replaced every five years. We attempt <br />to keep them longer if they are in good physical shape and still support the current <br />software platforms, but we had to replace two computers this year. We moved the <br /> <br />