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address the short term solutions currently being developed by staff (most <br /> likely a second modular building and some limited renovations to 200 Old <br /> Bernal). To accommodate this transfer, staff recommends that the $750,000 <br /> which is being recommended to assure the completion of existing City <br /> facility development projects funded in the CIP (as included above) be <br /> reduced to $500,000. If approved, the City Hall Expansion and Renovation <br /> project will have a balance of $690,000 of which approximately $225,000 is <br /> already allocated to the 123 Main Street modular project. <br /> <br /> 2. Utilizing an undetermined portion of the revenue to assure that the City's <br /> replacement reserves are as fully funded as possible. <br /> <br /> Comment: As the Council indicated, the City's replacement reserve funds <br /> are not fully funded. Determining the appropriate amount of revenue which <br /> must regularly be transferred into the reserve funds to assure 100% <br /> replacement of all City equipment and facilities would require additional <br /> study. As a result, staff is not in a position to completely address this matter <br /> at this time. However, based on a preliminary review of fixed asset records, <br /> staff estimates adequate replacement fund totals would be: <br /> <br /> Existing Funding Adequate Shortfall <br /> Vehicles $450,000 $500,000-600,000 $50,000-150,000 <br /> Equipment 250,000 400,000-500,000 150,000-250,000 <br /> Park Renovations 250,000 500,000! 250,000 <br /> Facilities 75,000 150,000-200,000 75,000-125,000 <br /> <br /> While a portion of this revenue can be transferred to the City's replacement <br /> reserves, maintaining adequate replacement reserves over an extended period <br /> of time requires a regular ongoing appropriation of revenue to the various <br /> replacement reserve funds. Unfortunately, at this time, available ongoing <br /> revenue has not been adequate to fully fund these reserves. While the <br /> transfer of revenue from existing reserves to various replacement reserve <br /> funds will certainly augment the fund balances in the replacement reserves, <br /> unless a long-term funding mechanism is developed to fully fund the <br /> reserves, the transfer will act more as an appropriation to replace existing <br /> City equipment rather than fully funding the reserves. <br /> <br /> 3. Redesiguating the reserve funds to a new "undetermined" project fund which <br /> would be used to fund yet to be determined future projects. <br /> <br />SR 96:197 <br /> 9 <br /> <br /> <br />