Summary
To: Town Commission
Through: Gay Lancaster, Town Manager
From: Christina R Porter, Finance Director
Date: 6/11/2024
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Subject:
Title
Equipment Replacement Fund: Proposed Budget FY 2024/2025
Summary:
The Equipment Replacement Fund was created to appropriately plan for and provide cash resources to be used exclusively for the replacement of essential Town capital assets, which are defined as items that have a purchase price greater than $5,000.
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Body
Previous Commission Action: The Commission reviewed a draft of the Equipment Replacement Fund in the April 2024 meeting.
Background/Problem Discussion: The capital assets of a government and the condition in which they are maintained are critical to the high quality of services provided by the Town in meeting the needs and priorities of stakeholders. The Equipment Replacement Fund should have a sufficient budget to provide for planned replacement of capital assets, as well as have reserves sufficient to address unexpected events that require repair or replacement. These cash resources are specifically earmarked and restricted for the future replacement and cannot be used for any other purpose. No transfers shall be made without Commission approval.
Due to staff turnover in recent years, there has not been a comprehensive review of capital assets or planning for replacement. This preliminary budget is based on discussions with each department and a review of the current state of their equipment, along with their future needs. It is significantly larger than in recent years to properly plan for replacement, as well as ensure a sufficient level of reserves for emergency or unplanned events as they relate to equipment. As a conservative estimate, this budget includes the replacement of 4 (four) police vehicles at $72,100 each, plus 4 new car radios at $6,500 each. This is due to the age of the vehicles (2 are 2013 and 2 are 2015 mode...
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