Laserfiche WebLink
o1' fixed ~sscts. },'or p[lrp(,scs of l;~Ss reporting, cities are establishing/and or updating fixed asset <br />thresholds so theft they are not too Ir,w, snch as the $1,000 cun'ently in place at Ramsey. The <br />auditor h~ls rccormncndcd, m~d olher cities are using a threshold of $5,000 per fixed asset. She <br />explained all lhc ~zapital assc:ts un(let 55,000 right now will be taken as a lump sum and offset the <br />capital items. ~l'l,~c City is lookini~ at several vehicles being purchased in 2005, and this will be <br />used to offset thc (;est. They haci depreciated that money that had come from the general fund <br />into thc cquip,nc~,t ,'eplacement fu,~d and it is to be used for capital items at a later date. <br /> <br />Chairperson l!lvi[,, questionect how thi~ would change the revolving fund. <br /> <br />l~inancc O['f'icc:r £,und explail~ed ~ny items included in the $5,000 would become like a small <br />tool. Nc~lhin~,, will be transl'crrcd into the equipment revolving fund at that time. It would be <br />loolccd :~t with thc life being that y~m'. <br /> <br />Chairperson I!lvi~ questioned whist lb. at might do to the impact of the general fund. He noted <br />llaere has bcct~ ~ lot of small fu[idi~g put in to match that will not be seen anymore. He <br />questioned il'thc equipment would c:ome out the general budget. <br /> <br />Finance Of'fitx:r lxlnd explained tl~e equipment would come from the general fund. Cun'ently <br />pm'chases have been done throu~(h the capital equipment certificates, and are normally an <br />cxpcnditm'e t~' th~ general fund /a~d,get. She explained if a squad car is $15,000 and it is <br />deprecittted over lwo years, the $1.;,000 is listed under the line item of capital equipment in the <br />general fired, attd u~dcr transk:rs tc~ tl~(; equipment revolving fund is the first year depreciation of <br />$?,500. That $7,5()0 is still being paid by the general fund levy and is transferred over to the <br />equipment replacement tim& Afte' txxo years when the squad has to be replaced the $15,000 is <br />transferred back re) thc general funci. With the smaller items the general fund will front the cost, <br />but there will m~t be the expense to go with it. <br /> <br />Motion by Co tmcilmcmbcr Zi nm-~ei mai~, seconded by Councilmember Strommen, to recommend <br />Ihat thc C ily ( i~)tmr:il approx/c thc C'~tpita~lization Threshold for Foxed Asset Policy in the amount <br />oi'$5,000 and adopl a resolutio~ ad(~pti~g the threshold policy. <br /> <br />Motion ca~'ricd, x/t~lmg <br />Strommcn. <br /> <br />('h~irperson Elvig, and Councihnembers Zimmerman and <br /> <br />Case #2: <br /> <br />Introduce Ordinan~:e Amending Chapter 3 and Repealing and Replacing <br />Section 3.40 Entitle(~ '~City Funds" <br /> <br />Finance et'lice I.tt~d cxplainc(t thi,, ordinance would amend Chapter 3, Section 3.40 Entitled <br />"City lrumls'' to ;~(ltl tile Pm'l( Maimenance Fund. The changes are updates or deletions to <br />outdated items. <br /> <br />Cmmcilmcmbcr Slrcm-mlcn ~;×lCress¢:(t concern that if another fund is created that has a limited <br />usc they will bc rcc~'cating the probl{~m ii'om a different angle. Eventually at build-out there will <br />not be park dedication Fees going irate that park fund. She questioned what would be used for <br /> <br />Fi~mn~'e Committee/May 25, 2004 <br /> Page 3 of 6 <br /> <br /> <br />