Memorandum

City of Lawrence

Finance Department

TO:	Diane Stoddard, Interim City Manager Casey Toomay, Assistant City Manager
CC:	Bryan Kidney, Finance Director
FROM:	Ashley Lonnberg, Senior Accountant
DATE:	June 17, 2015
RE:	2016 Vehicle and Equipment Budget

The 2016 budget requests for vehicles from all funding sources are attached. We have also attached the General Fund equipment requests. The resources are available for vehicle replacements and equipment for all non-general funds.

There were more requests for funding out of the General Fund than the 2015 level. Our recommendation is to keep the vehicle and equipment funding at the same level of the 2015 adopted budget of $786,800. To do so, we recommend a portion of the requested general funded vehicles and equipment be moved to the capital improvement reserve fund and equipment reserve fund.

The City has a $260,000 a year police cruiser annual replacement program and is included in this recommendation. Of the remaining requested vehicles, 18 vehicles totaling $757,000 have been labeled as Needs Immediate Consideration (NIC). We propose 16 of these vehicles totaling $502,000 be funded from the capital improvement reserve fund. The remaining 2 vehicles, totaling $255,000, would be added to the City’s debt issue in Fall of 2015. The first estimated debt service payment of $58,562.08 would not be due until 2017.

In addition, there was $1,071,800 in general fund equipment requests leaving a $545,000 gap. We propose $500,000 of the equipment requests be funded by the equipment reserve fund and reduce the new roof for the salt dome from $150,000 to $100,000. If the $100,000 is not sufficient to pay for the roof after bids are received, we recommend to carryover the $100,000 and make the roof a 2017 funding priority.