Title
Resolution to Amend the Fiscal Year 2022 Council Approved Budget to Appropriate $3,000,000 from the Equipment Replacement Fund's Unrestricted Net Position to the Equipment Replacement Fund's Operating Budget to Fund Replacement Cost for Emergency Equipment
Purpose
PURPOSE/BACKGROUND:
During FY 2021, while funds were frozen, the Public Works - Fleet Services Division worked with Newgen Financial to implement an equipment replacement model based on age, mileage, and repair costs. It was determined that the cost of emergency equipment due for replacement for the Fire and Rescue Division, which includes six (6) ambulances and other needed emergency equipment (the "Equipment"), was more than the budgeted allocation. The higher replacement cost is attributed to, in large part, the impact that the COVID-19 pandemic has had on production, demand, and supply chains. Replacement of this Equipment is critical to the day-to-day operations of the Fire and Rescue Division and their ability to protect and serve the Hampton community.
In order to expedite the purchase order of the Equipment, given the anticipated longer than average delivery time, a transfer from the Equipment Replacement Fund’s Unrestricted Net Position to the Equipment Replacement Fund's operating budget is required.
Discussion:
The Equipment Replacement Fund was established to manage the replacement of City-owned equipment assets that are necessary for the day-to-day operations of City departments. On-going work is being done with City departments to identify equipment needs based on the mission to maintain City services, as well as the safety of City staff and the citizens being served. The Equipment identified as being critically in need of replacement this year will also produce revenue through services.
Impact:
As of the date of this resolution, the balance of the Equipment Replacement Fund's Unrestricted Net Position is $9,444,368. After the $3,000,000 appropriation to replace the ...
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