Operating and CIP Budget Fiscal Year 2015-16

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CITY OF MORGAN HILL
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FY 15-16
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OPERATING AND CIP BUDGET
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CITY OF MORGAN HILL
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FY 15-16
OPERATING AND CIP BUDGET

CITY OF MORGAN HILL

FY 15-16

OPERATING AND CIP BUDGET

CITY OF MORGAN HILL
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FY 15-16 OPERATING AND CIP
CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY15-16  OPERATING AND CIP BUDGET 
Equipment Replacement [790-8500]
ACTIVITY DESCRIPTION
The Equipment Replacement Fund provides a mechanism for the City to budget and fund future replacement of vehi-
cles and equipment. Each department that uses City vehicles or equipment with future replacement funding is
charged an annual fee based on future replacement costs and the useful life for each item. This program continues to
provide a basis for the City to plan for and achieve incremental costs related to equipment and vehicle replacement to
smooth fluctuations in the City budget in any given fiscal year.
In FY 15-16, the Finance Department will continue to provide a budgetary planning tool for departments including cal-
culation of salvage values, serviceable life spans, accounting replacement contribution, and interest distribution.
These tracking tools will be updated periodically. The Equipment Replacement Management Committee will work to
increase coordination between departments in managing their equipment and vehicles.
FINANCIAL COMMENTS
Pre-funding of vehicle and equipment replacement provides for a measure of budget predictability, insures timely re-
placement which enhances safety and efficiency, and reduces the need for deficit spending based on a large capital
outlay in any given fiscal year. For FY 15-16 the following equipment is proposed to be replaced. As approved by staff
report in December 2014, Equipment Replacement fund will fund the costs for implementing the SVRIA (Silicon Valley
Regional Interoperability Authority) including Infrastructure, consoles and radios for the Fire and Police department.
The General Fund will make annual payments of $130,000, for the 10 years, or until the total cost of implementing the
infrastructure and equipment has been repaid.
Department Vehicle/Equipment Description Replacement Cost
Police PO62422006 Ford F150 Extended Cab 48,000.00 $
Police PO7406 2007 Dodge Charger Black 45,000.00
Police PO74072008 Dodge Charger Silver 45,000.00
Police PO6120 Honda Motorcycle 34,000.00
Police PO6121Honda Motorcycle 34,000.00
Public Works W82163 19 Jeep AM Genl 4 Cycl - Customer Service Maintenance 55,000.00
Public Works W03167 20 GMC Sierra Pickup - Meter Change-out 55,000.00
Public Works S07152 2 07 Ford F350 55,000.00
Public Works W07168 20 Ford F450 Supercab w/ Scelzi Utility body (valve exercising) 60,000.00
Public Works W06165 20 Ford F150 4x4 (50% sewer, 50% water) 42,000.00
Streets D02330 2 02 John Deer Tractor with tiger attachments 130,000.00
Streets D02339 2 02 Tiger Flail Mower 11,000.00
614,000.00 $