Equipment Replacement Plan
The Equipment Replacement Plan (ERP) is a twenty-year forecast and a five-year plan of equipment needs within the City. In is intended to inform the Council and citizens of the major equipment needs on the horizon. The first year of the plan becomes an adopted equipment budget and relates to the operating budget of the equipment replacement fund, which is approved on an annual basis. The remaining nineteen years represent an estimate of equipment needs and funding capabilities of the City.
Funding & Equipment
Funding requirements vary from year to year. In order to maintain a fairly consistent levy each year, the twenty-year schedule is projected with a 3% inflation factor for operating expenses. Equipment needs are evaluated each year and the schedule modified to account for changes in the condition of the equipment. Some items may need replacement sooner than expected due to high maintenance costs and other items lives may be extended thus delaying their replacement. Each piece of equipment is evaluated each year, the maintenance records and condition of the equipment reviewed so as to maximize the life of each piece of equipment.
Revenues for the ERP are derived from charges to the departments that use the equipment and are based on the equipment needs of the various departments over the twenty-year period.
Capital Improvement Plan
The City of Hopkins also annually prepares an Equipment Replacement Plan in addition to the Capital Improvement Plan.