Fleet Replacement Program contributions and expenses Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Expenses $4,711,900 $6,216,468 $4,132,838 $3,709,227 $4,229,329 $3,783,134 $4,054,854 $5,668,618 $4,339,395 $3,691,822 $4,383,779
Contributed Depreciation $2,697,199 $2,899,489 $3,116,951 $3,350,722 $3,602,026 $3,872,178 $4,162,591 $4,474,786 $4,810,395 $5,171,174 $5,559,012
Intra Fund Transfer $0 $207,059 $217,412 $0 $0 $0 $0 $0 $0 $0 $0
Estimated Interest $70,957 $51,520 $20,936 $13,161 $9,707 $3,531 $4,457 $5,579 $0 ($1,594) $13,184
Year-End Balance $5,151,998 $2,093,597 $1,316,057 $970,713 $353,117 $445,692 $557,886 ($630,367) ($159,368) $1,318,391 $2,506,808
The following policy guidelines are used to define a capital expenditure and steer the management of the process: • A capital expenditure is defined as a major construction, expansion, purchase, or major repair/replacement of buildings, utility systems, streets, or other physical structures or property which has an estimated total cost of $5,000 or more and generally has an expected life of at least five years.
This recurring source of money makes the fund selfsufficient. Existing assets are replaced on a life cycle replacement schedule. New equipment can be added through a new initiative if it can be shown to support the Strategic Plan. The table on the left shows the estimated replacement cost of the City’s fleet inventory for the next ten years with corresponding annual contributions required from department users of vehicles, in order to make “pay-as-yougo” fleet purchases. This annual contribution eliminates borrowing money to finance a vehicle’s replacement. In Fiscal Year 2015, the City will invest nearly $4.7M to replace vehicles and equipment that otherwise would be more costly to maintain.
Computer replacement: The Computer Replacement Program is used to purchase and maintain computer hardware (including scanners, laptops, and desktops) and software. This is also a self-sufficient, internal service fund. Existing computer technologies are replaced on a standardized replacement schedule that considers legacy as well as usage. The table below shows the annual investment cost to replace the existing inventory of computers.
• Capital items under $5,000 are generally included in the various Fiscal Year 2015 funds’ operating budgets.
Capital Projects Funding
• Capital improvements are programmed and scheduled based on the City’s projected financial ability to purchase and maintain the capital project. All projects are prioritized and ranked based on criteria including the strength of the linkage between the capital expenditure and the City’s strategic priorities.
General Fund, Fire Fund, and Water and Sewer Fund operating revenues—these appropriated revenues will generally be used to purchase modest, routine operating capital items.
• General Fund debt service expenditures will not exceed 12.5% of the total annual General Fund budget. • Voter-approved general obligation debt outstanding will not exceed 5.0% of the City’s total taxable assessed valuation. CIP Project Categories: Capital projects are divided into one of three primary categories: Capital improvement projects: The purchase, replacement, maintenance, and repair of infrastructure and fixed assets is budgeted and accomplished through the Capital Improvement Program. Fleet replacement: The entire inventory of vehicles and equipment is evaluated annually in order to prioritize replacement and repairs needed in the upcoming year, based on age, condition, maintenance cost, and expected life of each equipment. The Equipment Services Fund provides for the purchase, replacement, and maintenance of the City’s fleet and other large equipment (such as generators or tillers). This is an internal service fund in which departments are charged for the usage or depreciation of the equipment.
Funding for capital projects can be obtained from any of the following sources:
Franchise revenue bonds and capital revenue bonds—this consists of debt that is secured through the pledge of City General Fund franchise revenues and other non-ad valorem revenues. Water and Sewer revenue bonds—the Water and Sewer Fund is an enterprise fund supported by fees for service rather than by taxes. Revenue bonds are repaid with revenues generated from
Computer Replacement Program contributions and expenses Fiscal Planned Contributed Year Expenditures Depreciation 2015 438,450 362,945 2016 1,628,100 381,092 2017 479,200 400,147 2018 660,000 420,154 2019 657,050 441,162 2020 1,680,893 463,220 2021 370,450 486,381 2022 665,850 510,700 2023 526,350 536,235 2024 1,769,600 563,046 2025 391,500 591,199
City of Coral Springs, Florida
Year-end Balance 2,351,821 1,104,813 1,025,760 785,913 570,025 (647,648) (531,718) (686,868) (676,984) (1,883,537) (1,683,839)
69