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HomeMy WebLinkAboutItem 08 Approval of Transfer of Capital Funds Toward Purchase of Fire Truck AGENDA ITEM COVER SHEET Meeting Date: 12-20-2005 Item # 8 Contact Name: Contact Number: Richard Firstner 407 -905-3126 Reviewed By: Department Director: Richard Firstner City Manager: Robert Frank Subject: Transfer of Capital Funds Background Summary: $75,000 has been approved in the 2005-2006 Capital Budget for the first year's payment toward the purchase of a new fire engine. This amount covers the cost of the vehicle, but does not fund the necessary equipment to make the truck fully functional, or the finance charges. Issue: No funds were budgeted for the firefighting equipment necessary for the new engine to be fully functional. $8,000 has been budgeted for new additional mobile radios that will be required to be phased in over the next 5 to 7 years, due to technology advances. The purchase of these radios can be delayed one year. $20,000 was budgeted for the refurbishment of Engine 26. These funds can be used to cover the finance charges. Recommendations Staff recommends the transfer of $8,000 from Capital Equipment (6400) to Capital Vehicles (6401) to cover the cost to purchase the necessary equipment for the new fire engine. The $8,000 will be the first of four annual installments, that will subsequently be budgeted for over the next three years. It is also recommended that the Commission approve the change of use for the $20,000 to cover the finance charges, rather than the refurbishment of the engine. Any funds not expended on the finance charges will be used for refurbishment. Attachments: None Financial Impact: None Type of Item: (please mark with an "x'J Public Hearing _ Ordinance First Reading _ Ordinance Second Reading Resolution _ Commission Approval Discussion & Direction For Clerk's Deat Use: _ Consent Agenda _ Public Hearing _ Regular Agenda _ Original Document/Contract Attached for Execution by City Clerk _ Original Document/Contract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. N/A N/A Commissioners Garv Hood. District 1 Scott Anderson. District 2 Rustv Johnson. District 3 Nancy J. Parker. District 4 Mavor S. Scott Vandergrift Citv Manager Robert Frank STAFF REPORT TO: The Honorable Mayor and City Commissioners FROM: Richard Firstner, Fire Chief DATE: December 5, 2005 RE: Transfer of Capital Funds ISSUE Transfer $8,000 that has been budgeted for new mobile radios to provide the necessary firefighting equipment to make the new fire engine fully functional. $20,000 that is budgeted for Engine 26 refurbishment needs to be reallocated for the finance charges associated with the purchase of the new engine. BACKGROUNDIDISCUSSION $75,000 was budgeted for the purchase of the new fire engine, which will cover the cost of the truck alone, for the first year's payment. No funds were budgeted for the firefighting equipment that is necessary to make the truck fully functional, or for finance charges $8,000 was budgeted for the replacement of mobile radios. All fire department radios must be replaced within the next 7 years due to technology advances. There will not be any significant impact to delay the purchase of the radios for one year. $20,000 was budgeted for the refurbishment of Engine 26. These funds can be reallocated to cover the finance charges associated with the purchase of the new engine. Staff is requesting the City Commission approve the transfer of$8,000 in Capital Equipment funds (6400) to the Capital Vehic1e fund (6401) to cover the cost of procuring the necessary firefighting equipment to make the truck fully functional, and reallocate the $20,000 budgeted for the refurbishment of Engine 26 to cover the finance charges. 1