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