HomeMy WebLinkAboutFS 2009-07-21 Item 2A - Purchase - John Deer Front LoaderCity of Tukwila
TO: Mayor Haggerton
Finance Safety Committee
FROM: Finance Director
Public Works Directo
DATE: July 14, 2009
INFORMATIONAL MEMORANDUM
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SUBJECT: Purchase of John Deer Front Loader
Jim Haggerton, Mayor
ISSUE
Authorize transfer of funds from the Water, Sewer and Surface Water Capital Outlay funds to
the Equipment Rental 501 Fund to purchase a front loader.
BACKGROUND
The City budgeted $57,500.00 in each of the Street, Water, Sewer and Surface Water funds for
a total of $230,000.00 to purchase a front loader in the 2009/2010 Budget. Due to the economic
downturn and the General Fund's 3% reduction, the $57,500.00 was reduced from the Street
Fund 000.16.
The front loader will support daily maintenance operations and infrastructure repairs. The loader
will facilitate the removal of ditch cleaning waste, vactor waste and emergency management
sanding operations. The loader will be very beneficial for any flood control operations that may
be necessary as it will remove large logs, stumps and rocks.
To our benefit, the John Deere dealership still has a 2008 Front Loader available that will meet
all of the City's requirements. The dealership will honor the 2008 State bid price for the 2008
front loader rather than the 2009 bid prices. The price of the front loader including the 3.5 cubic
yard quick change bucket and quick change forks is $146,783.00 and with tax and licensing the
total will be $161,167.74.
Analysis
Using just the three enterprise funds; Water, Sewer, and Surface Water, their budgeted
amounts of $57,500.00 provide a budget total of $172,500.00. The Enterprise funds are more
than adequate to purchase the 2008 front loader and no General Funds are needed.
Funds need to be transferred from the Enterprise Fund's Capital Outlay accounts to
corresponding Transfer -out funds and then transferred to the 501.02 Equipment Rental Fund.
The Equipment Rental fund needs to recognize the purchase in order to start the depreciation
and replacement funds.
RECOMMENDATION
The Council is being asked to approve the Authorization for Transfer of Funds and consider this
item at the July 27, 2009 Committee of the Whole meeting and the subsequent August 3, 2009
Regular meeting.
attachment: Transfer of Funds form
W: \PW Eng \OTHER \Pat Brodin \Info Memo Loader Transfer.doc
City of Tukwila
AUTHORIZATION FOR
TRANSFER OF FUNDS
Department: Public Works Date: 7/15/09
Under the provisions of Ordinance No. 2221, the following transfer of funds within the budget is requested:
From:
To:
1
Budget Line Item Number/ BAR
Water 401.01.594.340.64.00
Sewer 402.01.594.350.64.00
Surface Water 412.01.594.380.64.00
Budget Line Item Number/ BAR
Water 401.01.597.380.00 Transfer Out
Sewer 402.01.597.380.00 Transfer Out
Surf Wtr 412.01.597.380.00 Transfer Out
Equip Rental 501.397.380.00.00 Transfer -In
Equip Rental 501.02.293.800.00.00
No.
Amount
balance of 501.02 Fund.
$54,000.00
$54,000.00
$54,000.00
$54,000.00
$54,000.00
$54,000.00
$162,000.00
$162,000.00
Amount
Detailed justification for transfer: See 2009/2010 budget Page 184 Line 17
Transfer Enterprise Funds Capital Outlay budgeted for the Loader (pg 163,167,177) to Enterprise
funds Transfer -Out funds in order to transfer to 501 Equipment Rental and reduce ending fund
APPROVED BY THE TUKWILA CITY COUNCIL AT A MEETING THEREOF:
the day of
APPROVED BY THE FINANCE DIRECTOR:
Signature: Date:
APPROVED BY THE MAYOR:
Signature: Date:
W: \PW Eng\ OTHER\ Pat Brodin \Loader Authorization for Transfer of Funds.doc
CO:ksn 7/16/2009