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b. Defer large ticket items (mostly P/W items) until 2010. <br />i. In 2010 the City issues an Equipment Certificate for the large <br />ticket items (first year levy = 2011. <br />ii. The impact is offset by the decertification of the Chandler District. <br />3) Bond Fund — annual funding available = $200,000. <br />a. Issue $2,000,000 in debt. <br />b. Annual principal and interest payments are made from the $200,000. <br />4) Reduce the project so that the savings equals the cost of the project with no Levy. <br />Other considerations: <br />When reviewing the Johnson Controls numbers it is important to focus on the numbers <br />they have presented under the heading of Operational Savings an how that impacts the <br />budget process. <br />Under this concept, the Public Director would have to trim the current maintenance <br />budget starting with $17,003 in 2009. Then add an additional 10% reduction for each <br />year thereafter. This may be an unrealistic expectation based on inflation and what might <br />or might not occur with this budget over the next 15 years. <br />It concerns me that since Johnson Controls does not guarantee or have an on -going <br />responsibility of making sure the operational savings is accomplished that the projected <br />savings won't become reality. If the savings are not accomplished, my thinking is that <br />the levy would have to be increased to balance any shortfall. <br />Recommendation: <br />Any of the first three options is viewed as acceptable; however, my recommendation is <br />rather than take the approach of trimming the Operational Savings line item out of the <br />budget, to include the amount as part of the levy. Example (Continues to 2023): <br />2009 $69,553 plus $17,003 = Levy $86,556 <br />2010 $69,553 plus $18,703 = Levy $88,256 <br />2011 $69,553 plus $20,573 = Levy $90,126 <br />2012 $69,553 plus $22,631 = Levy $92,184 <br />2013 $69,553 plus $24,894 = Levy $94,447 <br />