| | | | | | | | |  | Town of Miami Lakes
Memorandum | |
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| | | | | | | | | To: | Honorable Mayor and Councilmembers
| | From: | Alex Rey and Edward Pidermann, Town Managers
| | Subject: | Long-term Infrastructure Renewal and Replacement Fund
| | Date: | 2/5/2019
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| | | | | | | | | Recommendation: | It is recommended that the Council establishes a restricted Long-Term Infrastructure Renewal and Replacement Fund “Sinking Fund”, to renew or replace depreciating and/or decaying general fund assets, excluding routine repairs & maintenance or new construction. To accomplish this, a contribution from the general fund in the amount of at least $150,000 will be budgeted annually and transferred to the fund. This amount may be increase as needed through the budget process.
No cash or cash equivalents from this sinking fund shall be used for any other purpose other than to renew or replace existing assets thereby adding to its useful life.
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| | | | | | | | | Background: | During the FY 18-19 budget process, staff recommended funding a sinking fund in the amount of $150,000 to renew and replace general fund assets based on a list of infrastructure items.This was approved during the budget process.
At the October 2nd, 2018 Council meeting, Councilman Luis Collazo proposed a new business item to formalize the creation of an infrastructure renewal and replacement fund and mandate an annual contribution of at least $150,000 into the fund. The purpose is to fund future major infrastructure repairs and replacements such as roofs, air conditioners, etc. in correlation with their respective life cycle.
Subject to a biennial review of the renew and replacement schedule, staff may recommend an increase to the Sinking fund contribution through the budget process |
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