2024-12-11 CC Minutes - Approved

Home Browse Search

City of Centerville City Council Meeting Minutes December 11, 2024 2. Res. #24-0XX - Transfer from Enterprise Funds to Equipment Replacement Fund Finance Director DeJong stated that staff reviewed with Council the Equipment Replacement Fund in 2023. He stated that at that time, staff stated that they would come back to Council with recommendations. He stated that with the Parks & Recreation funds being finalized, staff recommends transferring $250,000 out of the Enterprise Fund to the Equipment Replacement Fund to assist in funding all of the equipment purchases that were planned. He explained that $100,000 would come from the Water Fund, $100,000 would come from the Sewer Fund and $50,000 would come from the Storm Water Fund. Finance Director DeJong stated that all the funds were healthy, it was anticipated that they would increase on an annual basis and that there were no questions that the City would not have funding for Capital Improvements or emergencies. He stated that it was appropriate to transfer the funding as the equipment is utilized on a daily basis for each of those funds and activities related to those funds. Administrator Statz stated that the park improvements and the Equipment Replacement are different. He explained that salaries are accounted for from the Enterprise Funds as employees are testing water, checking sewers, etc. and the associated equipment that gets used to complete the tasks should also be accounted for accordingly. Administrator Statz stated that he wanted to decouple the recent Parks & Recreation Capital Replacement transfer from this transfer as those funds were from the general fund ($100,000 one-time transfer and $40,000 annually for their 15-year replacement fund) for park equipment capital replacement. Council Member Koski asked several questions regarding trucks and Administrator Statz stated that the city currently has two multi $100,000 large trucks and the other vehicles were driven daily. He stated that prior to the pandemic, it was believed that vehicles were financially easy to come by and the resale value was profitably, but that had not been the case for numerous years. He stated that staff has considered the amount of time when depreciation outweighs the value and how to dispose of the older stock. He explained that the existing Capital Improvement Plan (CIP) runs a 6-year period. He referenced that in the past the city purchased a truck, and it took two years to receive the truck. Finance Director DeJong stated that the city has two large plow trucks and two 1-ton trucks as the rotation was strategic due to pending retirement(s). Council Member Koski requested that additional discussion be had regarding the (CIP) soon. Motion by Koski, seconded by Taylor to Adopt Res. #24-028 – Transferring Funds from Enterprise Funds to the Equipment Replacement Fund as presented. All in favor. Motion carried. 3. Res. #24-0XX - Cancelling Copier Leases and Authorize Staff to Enter into New Equipment Leases Finance Director DeJong stated that the Public Works copier was 6 years old, and City Hall’s copier would shortly be 5 years old. He stated the importance of operation of City Hall’s machine as it produces all utility billing, correspondence, etc. and that it is very wise to have reliable equipment. He stated that staff would be looking at leasing these machines through the state’s cooperative purchasing program so there would be no need for going through the bidding process He explained that this process would allow staff to enter into agreements for another 5 years. He stated that the city was paying approximately $202/month for the City Hall copier. Council Member Koski asked if there were other options rather than entering into a lease agreement. Page 4 of 9