2025 Budget for the City of Shakopee

134

2025 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 wait times on orders makes replacing equipment and vehicles more costly.

Performance Measures:

Actual 2022

Actual 2023

Projected 2024 $1,256,700

Projected 2025 $1,900,300

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

$623,190

$1,075,777

17

22

22

23

Capital Improvement Plan: The City prepares a five year capital improvement program (CIP). A separate CIP document was approved by Council on November 6, 2024. The CIP book provides a summary of each project 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.