2024-12-11 CC Packet - Revised - Laserfiche WebLink

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Memorandum Date: November 8, 2023 To: Honorable Mayor and City Council Members Through: Mark Statz, City Administrator From: Bruce DeJong, Finance Director Item: Transfer from Enterprise Funds to Equipment Replacement Fund Staff is bringing forward a resolution to transfer money from the Water, Sewer, and Storm Water funds to the Equipment Replacement Fund. This action is finalizing the process staff last discussed with City Council members on November 8, 2023. At that point, staff had proposed a potential transfer of $300,000 from both Water and Sewer for a total cash infusion of $600,000. There have been a number of project changes since that time. There have been changes to all areas that have moved out some of the need. We can make the fund solvent with a transfer of $250,000 this year and annual transfers in of $60,000. Staff proposes that the following allocation of funds be used for transfers. Fund One-Time Transfer Ongoing Transfers starting in 2025 Water $100,000 $25,000 Sewer $100,000 $25,000 Storm Water $ 50,000 $10,000 Equipment Replacement Fund City Hall Staff is still investigating new financial software solutions. Clearly, we wonÓt be able to get that done in the next two months, so we have moved the funding to 2025. We arenÓt sure we will need all that funding if we go with a cloud-computing solution. Most of the software we are reviewing is not premise based any longer, so the initial costs might be lower, but there would be a corresponding increase in annual maintenance costs with a cloud computing solution. Staff is unable to project a corresponding decrease in costs with Metro-INET at this time.