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> i- ! <br />' -V • 1 <br />> ,’v. <br />y'rf-* ...i. <br />ill. <br />w4 <br />0 <br />mb'- <br />A <br />0I’ip. <br />t^ <br />0># <br />-^<0^ ' 4fj <br />/=^ <br />TO Mayor and City Council <br />FROM: Ron Moorse, City Administrator <br />DATE: April 23, 1992 <br />SUBJECT: Equipment Purchase Public Works <br />% <br />' f9^ <br /></ <br />■’■*i J <br />At the March 23 Council meeting the Council tabled the bid award <br />concerning the replacement of a utility tractor due to questions <br />remaining concerning the impact of State Budget problems on the <br />city's finances. The final result of the Legislative session was <br />the extension of the 6.5% sales tax to the purchases of all local <br />government jurisdictions. This change goes into effect on June <br />1, 1992. <br />The Finance Director has estimated that the sales tax will add <br />approximately $20,000 to the 1992 city budget. This assumes that <br />as many newly taxable items as possible are purchased prior to <br />June 1. Staff will prepare recommendations for expenditure <br />reductions to offset the sales tax cost. <br />In the interim, it is important that the city move ahead to <br />purchase priority capital items prior to June 1. The utility <br />tractor is a priprity because it replaces a tractor that can no <br />longer be used for the city's mowing activities. <br />It is recommended that we move ahead with the purchase of the <br />utility tractor at this time. The attached memo summarizes the <br />bids received for the replacement of the utility tractor.