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HomeMy WebLinkAbout97-41 RESOLUTION 97-41 RESOLUTION AUTHORIZING FUND TRANSFERS TO ESTABLISH REVOLVING EQUIPMENT FUND MOTION BY: Kedrowski WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS, SECOND BY: Schenck The City Council has determined that the City establish a regular replacement schedule for its equipment needs; and Equipment reliability is increased and maintenance costs are reduced as a result of not extending the useful life of equipment beyond recognized industry standards; and The City would realize significantly greater trade-in values which would reduce the net purchase cost of its equipment if such equipment is replaced based upon life cycle expectancy; and Individual operational safety is aprimary concern which would be increased by the utilization of quality equipment; and The establishment of a revolving equipment fund would provide the financing method to fund city department equipment needs of $5,000 or more; and A Revolving Equipment Fund would result in property tax savings by reducing capital expenditures within the City's operating budget and by the elimination of interest dollars spent on debt financing; and It is important that the City of Prior Lake present a positive community image by maintaining its equipment fleet in good condition and promoting pride of ownership. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, that a permanent Revolving Equipment Fund be created for the purpose of funding replacement and new equipment purchases of $5,000 or more and that the following allocations and appropriation transfers from the General Fund, Sewer & Water Fund and Equipment Fund balances are hereby authorized as follows: Financing Source: Fund Transfer: Amount 1. Equipment Fund Balance 2. General Fund '96 Surplus Allocation 3. General Fund Balance 4. S& W Fund Balance Revolving Equipment Fund Revolving Equipment Fund Revolving Equipment Fund Revolving Equipment Fund $304,727.96 $250,000.00 $200,000.00 $250,000.00 162{fflS~~~reek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER --------~~-~~._------~ Passed and adopted this 19th day of May, 1997. YES Andren x Andren Greenfield absent Greenfield Kedrowski x Kedrowski Mader x Mader Schenck x Schenck NO {Seal} RES97xxx.DOC