Agenda Packets - 1990/03/05 - Laserfiche WebLink

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DATE: February 26, 1990 SUBJECT: Capital Budget TO: Donald C. Poss Blaine City Manager Donald F. Pauley Mounds View Clerk-Admini tratar Donald B. Busch Spring Lake Park Clerk -Treasurer FROM: Fire Chief jL4•-- 14L& ., pia fES 0 Our Capital Budget Committee met to review and update the current document in the light of our projected needs. Attached hereto is a copy of our latest projections which contains three additional items; justification for these items will be discussed further on in this memo. The eye-catcher in this projection is the humongous increase for the year 1993 and beyond. By the time 1997 rolls around, the projected cost will be over $500,000 annually as opposed to $103,000 for 1990. The largest PP~ percentage increase occurs in 1992. All of this indicates to us that another funding method must be used outside the tax levy limitations. Mot knowing all the options available to cities for 20 year purchases, we opted for going for a bond issue in the amount of 2.75 million dollars, the details of which are outlined on page 2 of the projected Capital Budget. This amount will take care of the apparatus and buildings as listed as well as ancillary equipment. By going the route of a bond issue, our current yearly Capital Budget would allow us to build up a reserve to replace/purchase smaller items such as chief's cars, pickup truck, jeeps, etc. In our example, we also show the difference In yearly cost by going for a bond issue to replace Ladder 9 and Engine 6, since at that point in the future, the combined cost will be approximately $1,000,000. We are firmly convinced that the present method of financing capital expenditures, having the amount necessary included in the yearly tax levy, will not be a viable option down the road unless the State Legislature makes drastic changes in the tax laws/levies more favorable to the cities. I discussed going for a bond issue with our firefighters, and they were very enthusiastic in their agreement to help push this through with neighborhood meetings, handouts, Cable TV announcements, etc.