The city council is considering an amendment to increase the Capital Replacement Fund budget by $770,000 to pay for a new fire truck that needs to be ordered earlier than planned due to manufacturer delays. The current budget scheduled replacement of the fire truck for fiscal years 2023-2024 but it now must be pre-ordered 23 months in advance with full payment up front to avoid further delays and increased costs. The funds are available in the Capital Replacement Fund and this amendment follows the city's financial policies of paying for capital equipment through savings instead of loans.

1. CITY OF ALAMO HEIGHTS
ADMINISTRATION AND FINANCE DEPARTMENT
CITY COUNCIL AGENDA MEMORANDUM
TO: Mayor and City Council
FROM: Robert Galindo, Finance Director
SUBJECT: Budget Amendment for Capital Replacement Fund Fiscal Year 2021-2022
DATE: April 25, 2022
SUMMARY
An Ordinance authorizing an amendment to the Capital Replacement Budget. This budget
amendment is for an additional $770,000 to the Capital Replacement Fund for the replacement
of the fire truck that was scheduled in 2024. The funds are available in the Capital Replacement
Fund.
BACKGROUND INFORMATION
The Capital Replacement Fund is for the purchase of capital equipment. The fire truck was
scheduled for replacement in FY 2023-24. Due to challenges faced by the manufacturer, the
manufacture requires at least 23 months to pre-order and full payment in advance. Delaying the
order could add more time to the final delivery, increased costs and loss of pre-payment
discounts. The funds are available in the Capital Replacement Fund and there will not be any
negative impact to other departments.
POLICY ANALYSIS
City staff practices sound financial management and this budget amendment is in line with the
city’s fiscal policies and strategic planning to pay for capital equipment on a pay as you go basis.
FISCAL IMPACT
The following is the total amount of the budget amendment.
ATTACHMENT
Attachment A – Ordinance
______________________
Robert Galindo
Finance Director
______________________
Buddy Kuhn
City Manager
Capital Replacement Fund
Adopted Budget FY 2018-19 Budget Amendment 5-07-19 Total
$275,526 $770,000 $1,045,526

2. Attachment A
ORDINANCE NO. 2189
AN ORDINANCE AMENDING THE CAPITAL REPLACEMENT FUND
BUDGET FOR $770,000 TO FUND THE REPLACEMENT OF THE FIRE
TRUCK; AND SETTING AN EFFECTIVE DATE.
WHEREAS, the City of Alamo Heights scheduled for the replacement of the Fire Truck
in Fiscal Year 2023-24; and
WHEREAS, the manufacturer has notified the City that all new fire trucks have to be pre-
ordered at least twenty-three (23) months in advance; and
WHEREAS, the manufacturer requires full payment up front and the funds are available
in the Capital Replacement Fund; and
WHEREAS, delaying the order could add more time to the final delivery, increased costs
and loss of pre-payment discounts and therefore this budget amendment follows sound financial
management and fiscal policy to fund capital equipment on a pay as you go method; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ALAMO HEIGHTS, TEXAS that the adopted fiscal year operating budget Fiscal Year 2021-
2022 is amended by an additional $770,000 in the Capital Replacement Fund. The current adopted
budget for Capital Replacement is amended to reflect this budget amendment. This ordinance shall
become effective upon passage by the City Council.
PASSED AND APPROVED this 25th day of April, 2022.
_____________________________________
BOBBY ROSENTHAL, MAYOR
ATTEST:
_________________________________
ELSA T. ROBLES, CITY SECRETARY
APPROVED AS TO FORM:
_________________________________
FRANK J. GARZA, CITY ATTORNEY