Capital Purchases Fund

The Capital Purchases Fund provides for General Fund capital purchases and is primarily funded by a transfer of unrestricted fund balance. The city defines capital purchases as any equipment (including software) with a price that exceeds $5,000 and has a useful life of over 3 years. This fund also simplifies the tracking of fixed assets for city staff and auditors and allows for a quick reference for annual capital purchase spending.

History Budget Budget

2020 Actual 2021 Budget 2021 Revised 2022 Budget % Change

Beginning Fund Balance 87,492 150,218 327,795 6,034 -95.98%

Revenue

Interest Income 17,607 - 1,500 500 -

Sale of Assets 22,468 - - - -

Insurance Reimbursements 14,838 - - - 54,912 - 1,500 500 -

Transfers In

General Fund 547,500 600,000 600,000 2,000,000 233% 547,500 600,000 600,000 2,000,000 233%

Total Revenue 602,412 600,000 601,500 2,000,500 233%

Expenditures

Engineering

Police

Fire

Parks & Recreation

Streets - - - - 142,270 - 425,052 466,153 108,614 - 187,335 226,219 28,664 51,108 60,608 51,108 12,136 - 101,000 30,500 -

Neighborhood Services

- - - 90,000 Facilities Maintenance 6,727 - 133,350 - Information Technology 12,591 - 15,917 195,000 311,002 51,108 923,262 1,058,980 1972%

Fund Balance

Transfers Out

Debt Service 51,108 - - - 51,108 - - - -

378,903 699,110 6,034 947,554 36%

Committed Fund Balance Ending Fund Balance

- - - 500,000 327,795 699,110 6,034 447,554 -36%

The Fiscal Year 2021 budget included a transfer of $600,000 with no specific purchases identified. This was done in an abundance of caution as COVID created several unknowns and potentially negative impacts to 2021 revenues. As the year progressed it became obvious that our community was fortunate to not experience the same revenue losses as others and some spending was allowed.

October – The Police department received grant funding for forty body cameras. This included the purchase of a server by the Information Technology department.

December – Council allowed distribution of $85,000 worth of available fund balance for the newly established Grounds Crew. This equipment was redistributed when the Grounds Crew was reclassified.

The Facilities Maintenance department also purchased a work van to replace a 2007 pick up truck being used by the Facilities Maintenance Coordinator.

The Fire department completed the purchase of a new EMS vehicle that was approved in 2020 and upgraded some SCBA equipment based on potential CARES grant funding.

The Capital Purchases fund accounts for monthly payments for the purchase of the Pinson Farm property. Payments total $51,108 annually and are included in the annual transfer from the General Fund. Parks will also purchase a mower in 2021.

In July, the City Council voted to allow the purchase of nearly $600,000 worth of equipment from the funds that were set aside with no specific purpose during the Fiscal Year 2021 budget process. These purchases include:

POLICE -$348,247 • Tasers (CEW) Conducted Electrical Weapon • Ballistic Helmets • Communication Earpieces • Patrol Vehicle • Night Vision Safety Equipment FIRE - $83,750 • Faro Handheld Scanner • LP15 Cardiac Monitor/Defibrillator • LUCAS3 Mechanical Chest Compression System STREETS - $101,000 • Two Sand Spreaders • 3 Ton Asphalt Roller • Flashing School Zone Signs

The following items are proposed for purchase in Fiscal Year 2022:

POLICE • LENCO Bearcat - $286,153 o This is an armored vehicle for SWAT use. • Two Replacement Patrol Vehicles - $180,000

FIRE • Replace Medic 2 Vehicle - $95,000 • Replace Brush 1 Truck - $131,000

STREETS • Large Message Board - $17,000 • Small Message Board - $13,500

NEIGHBORHOOD SERVICES • Two Additional Trucks for New Employees - $90,000

INFORMATION TECHNOLOGY • Public Safety Radio Inventory -$195,000

The total transfer from the General Fund for Fiscal Year 2022 is proposed at $2,000,000. This transfer will cover all of the requested purchases, allow for $500,000 to be committed for the future purchase of a Fire Engine and leave nearly $450,000 in fund balance available for unforeseen or future needs.