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Fiscal Impact |
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Fiscal Impact: |
The total anticipated cost for this purchase is $4,587,754.82. The City has been accumulating funds for replacement of these vehicles within the Equipment Replacement Fund (ERF) for many years, at an assumed annual inflation rate of 3%. Due to regulatory changes and recent national inflation rates higher than expected, prices have outpaced the City's accumulated savings. Estimated to the time of anticipated delivery, the ERF is will have $3.4M accumulated for these vehicles, inclusive of funds saved for a 2013 Spartan mini-pumper that will no longer be in the replacement schedule when it is taken out of service. The additional $1.2M is expected to be covered partially via the proceeds from the surplus sale of the replaced apparatus and through General Fund excess revenue transfer to the Equipment Replacement Fund over the next three years. |
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