2026 Budget for the City of Shakopee

136

2026 Annual Budget

Equipment Internal Service Fund

Establishment: The Equipment Fund was established by Resolution #4077 in 1994.

Description of Services: This fund finances the multi-year Equipment Plan. Financing to purchase equipment is provided by "rent" payments from the operating departments at rates established annually by the Finance Department as part of the budget process. Equipment for the Sewer and Storm Drainage enterprise funds is not included. The Equipment Fund shall "own" and acquire larger pieces of equipment including but not limited to cars, trucks, graders, loaders, tractors and larger mowers or items generally costing $20,000 or more.

Accomplishments:  20-year CIP was updated for long range financial planning.  Fire Department restructured equipment to meet future needs.

Goals/Challenges:  With nearly 400 pieces of equipment and vehicles, it is important to have a well-planned vehicle replacement program.  Raising inflation on vehicles and longer waiting times on orders makes replacing equipment and vehicles more costly.

Performance Measures:

Actual 2023

Actual 2024

Projected 2025 $1,900,300

Projected 2026 $3,979,000

Cost of Vehicles Added/Replaced # of Vehicles Added/Replaced

$1,075,777

$2,610,250

22

29

23

26

Capital Improvement Plan: The city prepares a five-year capital improvement program (CIP). A separate CIP document was approved by Council on October 21, 2025. The CIP book provides a summary of each project’s location, description and source and use of funds.

A full 20-year equipment replacement plan, encompassing all equipment and vehicles, is included as an appendix in the CIP.