FY25 Proposed Budget

cost-per-ton transfer is made from the landfill operations to the replacement reserve. These funds are intended to eliminate future borrowing or significant rate adjustments in order to open new cells. The budgeted balance for the landfill cell replacement reserve for fiscal year 2025 is $3,693,268.

At June 30, 2023, it is estimated that the landfill had deposited 5,017,075 tons versus its permitted capacity of 5,461,000 or 91.9%.

Capital replacement reserves The City maintains long-term replacement reserves including cable television equipment, library equipment, vehicles and heavy equipment, information technology equipment replacement, transit system buses and facilities, parking facilities, water and wastewater facilities, airport infrastructure, and storm water infrastructure. Included in the operating budget are transfers and internal charges to the replacement reserves for the purpose of funding the replacement of these types of equipment, facilities, and infrastructure. Equipment Fund transfers are equivalent to the annual depreciation on the equipment so that these replacements are fully funded when they are necessary. The replacement reserve for transit buses and facilities is funded at 20% of accumulated depreciation due to the availability of state and federal grants to make these purchases. Transit buses and facilities are depreciated using the straight-line method over an eight-year useful life. These grants typically fund 80% - 85% of the acquisition cost of the bus. The projected balances for replacement funds for fiscal year 2025 are as follows:

Reserve

Fund

Balance

Library equipment

General Parking

$ $ $ $

188,413 195,000

Parking infrastructure & facilities

Public transportation buses & facilities Transit

2,761,556 5,528,028

Facility replacement

General

Vehicles and heavy equipment Cable television equipment Info technology equipment

Equipment

$ 10,196,168

General

$ $

131,171

ITS

1,415,189 3,359,160 3,599,596

Wastewater infrastructure & facilities Wastewater $

Water infrastructure & facilities

Water

$

Stormwater infrastructure & facilities Stormwater $

662,961

The City also collects funds to replace copy machines through a charge-per-copy that is collected in the Central Services Fund. This fund is projected to have $822,501 in fund balance at the end of fiscal year 2025 available for the replacement of copy machines. Risk Management and Health & Dental Insurance Reserves (OPEB) The City contracts for actuarial services for the purpose of calculating and maintaining reserves that are intended to provide for certain liabilities. Actuarial calculations regarding liabilities for future expenditures are determined for risk management (liability, workers compensation, and property insurance) payments, health and dental insurance payments, and retiree health and dental insurance benefits. Actuarial calculations are updated annually and help determine internal charge rates and premium rates for risk management and health insurance charges. The estimated Risk

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