11-08-90 CCM - Laserfiche WebLink

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The Parks Commission met last night and worked on its 5 year CIP. That will be sent to the council later this week so you can review it prior to the November pre -budget hearing meeting. So that Marilyn can finish the CIP's and get them out to you, I would like to bring up the Capital items that we would like here in the office. First is an upgrade of our telephone system. We got a bid from AT&T for a "Merlin Plus" communication system. I have enclosed brochures from AT&T that outline the systems capabilities. We budgeted $3,000 for telephone expenses in 1991. We lease our present phones at $66.95 per month for a total yearly cost of $804.00. Three lines of service is $2,196 yearly for a total of $3,000. For four lines of telephone service (which we are proposing rather than the 2 regular <rollover>, and one private line that we now have) will cost approximately $2,928.00 per year. If we purchase this new phone system outright our costs would be: 4 lines, plus one additional phone for conference room all installation and training plus 1 year maintenance & warranty: $5,437.00 4 years maintenance agreement @ $56.50 per month: $2,712.00 Cost of purchasing phones over 5 years: $8,149.00 Please note that if we continued to lease our present phone system for the next five years, we will have spent at a minimum $4,020.00 on lease payments and will not own the system. AT&T also has a lease program and the cost for that will be $188.50 per month. Over a 5 year period that would total $11,310.00. Therefore, the savings of purchasing outright versus leasing would save the City $3,161.00 over the next five years. I have attached a copy of the "Fund Balances", that will be part of your final budget. Please note under "Other Fund Balances" that the proceeds from our bond sale amounted to $263,413. Of that amount, $17,066 was spent on administrative CIP purchases, $184,639 was spent on Fire Deptartments CIP purchases and $38,126 was spent on maintenance department CIP purchases. There remains a balance of $28,833 in that fund, and administration could use to pay for the telephone system and the computers.