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Home My WebLink AboutRES CC 2019 3827 2019 0619 RESOLUTION NO. 2019-3827 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE CREATION OF AN IT EQUIPMENT REPLACEMENT FUND (3008), VEHICLE REPLACEMENT FUND (3009) AND FACILITIES REPLACEMENT FUND (3010); AND AMENDING THE FISCAL YEAR 2018/2019 BUDGET BY APPROPRIATING $1,644,095.65 AND AUTHORIZING THE TRANSFERS FROM VARIOUS SOURCES TO FUND THE EQUIPMENT REPLACEMENT REQUIREMENT; AND AUTHORIZING THE DESIGNATION OF ADDITIONAL FUND BALANCE FOR EQUIPMENT REPLACEMENT OBLIGATION IN CERTAIN RESTRICTED FUNDS WHEREAS, in Fiscal Year (FY) 1985/86 the City established the Equipment Replacement Fund 3003 (ERF) to set-aside money to replace various machineries and equipment as they age and/or as the asset's useful life has exhausted; and WHEREAS, on June 20, 2018, the City Council adopted the Operating and Capital Improvement Budget for FY 2018/2019 which excludes any transfers to fund the reserve for equipment replacement; and WHEREAS, a staff report has been presented to the City Council summarizing the challenges of one equipment replacement fund and recommending to establish three new funds: IT Equipment Replacement (3008), Vehicle Replacement (3009) and Facilities Replacement (3010) to provide a better system to address the disparities caused by varying useful life of the capital equipment categories; to prioritize the financing of reserve; and to monitor the utilization of the funds. The reserve requirements of the assets covered by these new funds will allocated from the ERF. Accordingly, a transfer of $1,358,694.00 from ERF to IT Equipment Replacement Fund (3008) - $393,824.00; Vehicle Replacement Fund (3009) - $433,207.00; and Facilities Replacement Fund (3010) - $531,663.00 is proposed; and WHEREAS, the same staff report included a list of capital assets with a reported book value of$4,145,810.81 as of June 30, 2018. The City's replacement reserves should equal the accumulated depreciation of these assets. The estimated accumulated depreciation of these equipment on June 30, 2019 will be $2,975,860.35; while the projected aggregate reserves for equipment replacement will be $2,437,747.58, resulting in a $538,112.77 shortfall; and WHEREAS, a budget amendment of$285,401.65 from the General Fund (1000) is requested to fully subsidize the reserve requirement for replacement in the Equipment Replacement Fund (3003), IT Equipment Replacement Fund (3008), Vehicle Replacement Fund (3009), and Facilities Replacement Fund (3010). Accounting entries totaling $44,525.35 —$25,380.83 from the Gas Tax Fund (2415), $12,387.23 from Country Club Estates (2315) and $6,757.29 from Moorpark Highlands (2322) are required to be Resolution No. 2019-3827 Page 2 designated as additional obligation in Account 33020 — Reserve for Equipment Replacement within the respective funds. The remaining $208,185.77 reserves assigned to certain Landscape Maintenance Districts and PEG Capital Fund (3006) will deferred; and WHEREAS, Exhibits "A" and "B", attached hereto and made a part hereof, describes said budget amendments and the resultant impacts to the budget line items. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The creation of IT Equipment Replacement Fund (3008), Vehicle Replacement Fund (3009), and Facilities Replacement Fund (3010); and designated for future equipment replacement, is hereby approved. SECTION 2. An aggregate budget amendment and fund transfer of $1,644,095.65, as more particularly described in Exhibit "A", is hereby approved. SECTION 3. The accounting entries totaling $44,525.35 to designate additional fund balance reserve for equipment replacement as more particularly described in Exhibit "B", is hereby approved. SECTION 4. That the deferral of the funding obligation for with aggregate total of$208,185.77 is hereby approved. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 19th day of June, 2019. / ) a Ja ce S. Parvin, Mayor ATTEST: a 4< 4. 167 Cia, K Span er City Clerk a Ai Attachments: $4�� Exhibit 'A' °94r .c Exhibit `B' f° �`'` Resolution No. 2019-3827 Exhibit A Page 3 Budget Amendment for Various Funds for Equipment Replacement Obligation FY 2018/2019 A. Fund Allocation Fund/Account No. Fund Description Amount 1000-000-00000-33990 General Fund $285,401.65 3003-000-00000-33990 ,Equipment Replacement Fund $1,260,282.14 3008-000-00000-33990 IT Equipment Replacement Fund ($452,111.90) 3009-000-00000-33990 Vehicle Replacement Fund ($495,307.10) 3010-000-00000-33990 Facilities Replacement Fund ($598,264.79) Total $0.00 B. Revenue Budget Allocation Fund/Account No. Current Budget Revision Amended Budget 3003-000-00000-49010 $0.00 $98,411.86 $98,411.86 3008-000-00000-49010 $0.00 $452,111.90 $452,111.90 3009-000-00000-49010 $0.00 $495,307.10 $495,307.10 3010-000-00000-49010 $0.00 $598,264.79 $598,264.79 Total $0.00 $1,644,095.65 $1,644,095.65 C. Expenditure Appropriation Budget Number Current Budget Revision Revised Budget 1000-000-00000-59010 $0.00 $285,401.65 $285,401.65 3003-000-00000-59010 $0 00 $1,358,694.00 $1,358,694.00 Total $0.00 $1,644,095.65 $1,644,095.65 D. Interfund Transfer Transfer FROM TO 1000-000-00000-49010 3003-000-00000-49010 TOTAL 3003-000-00000-49010 $98,411 86 $0.00 $98,411.86 3008-000-00000-49010 $58,287 90 $393,824.00 $452,111.90 3009-000-00000-49010 $62,100.10 $433,207.00 $495,307.10 3010-000-00000-49010 $66,601 79 $531,663.00 $598,264.79 Total $285,401.65 $1,358,694.00 $1,644,095.65 Resolution No. 2019-3827 Exhibit B Page 4 Fund Balance Designation for Equipment Replacement Reserve Fund Fund/Account From To Gas Tax 2415-000-00000-33990 $25,380.83 2415-000-00000-33020 $25,380.83 Country Club Estates 2315-000-00000-33990 $12,387.23 2315-000-00000-33020 $12,387.23 Moorpark Highlands 2322-000-00000-33990 $6,757.29 2322-000-00000-33020 $6,757.29 TOTAL $44,525.35 $44,525.35 Resolution No. 2019-3827 Page 5 STATE OF CALIFORNIA ) COUNTY OF VENTURA ) ss. CITY OF MOORPARK ) I, Ky Spangler, City Clerk of the City of Moorpark, California, do hereby certify under penalty of perjury that the foregoing Resolution No. 2019-3827 was adopted by the City Council of the City of Moorpark at a regular meeting held on the 19th day of June, 2019, and that the same was adopted by the following vote: AYES: Councilmembers Enegren, Mikos, Pollock, Simons, and Mayor Parvin NOES: None ABSENT: None ABSTAIN: None WITNESS my hand and the official seal of said City this 19th day of June, 2019. Ky Spa ler, Cit Jerk (seal) o-1141111111441/4 9 -41War4M4 ftip % w SFO Jo4:4