Replacement fund, vehicle policy and K-9 funding: committee weighs FEMA timing, EV policy and ongoing costs for police dog 'Red'

Committee members reviewed the replacement fund schedule and discussed the city’s approach to recently accelerated purchases made in response to FEMA-eligible events. Finance staff said the replacement reserve balance moved from about $4.2 million (actual 2023) to an estimated $3.3 million in 2024 after accelerated purchases; staff are awaiting FEMA reimbursement and plan to model two budget scenarios — one that assumes reimbursement and one that assumes the city is not reimbursed.

“We are on track to be able to have that available for the audit,” a finance representative said, adding that the final FEMA submission was expected this week and that reimbursement timing could be six months or longer. Staff estimated about $1.7 million in FEMA-eligible reimbursements tied to capital purchases; those reimbursements would be split among affected funds according to where the original spending occurred.

City staff and aldermen also discussed updates to the vehicle replacement policy. Dan (staff) summarized the existing policy language in the employee handbook and noted older resolutions referenced thresholds such as three years/75,000 miles for patrol vehicles and five years/75,000 miles for unmarked vehicles. He recommended revising the policy to add categories that did not exist when prior policies were written (for example, side-by-side off-road utility vehicles and K-9 units) and to include criteria for electric vehicles (EVs). Committee members asked staff to produce modeled replacement schedules showing alternatives (for example, extending replacement from 3 years/75,000 miles to 5 years/100,000+ miles) and to show budget impacts.

The police department briefed the committee on the K-9 program and the funding gap after initial foundation fundraising slowed. Police staff said ongoing annual costs for the K-9 program (training, food, veterinary care) were projected at about $6,500 per year. The police recommended that ongoing maintenance costs be paid from the city’s general fund rather than asset forfeiture funds; the committee reached informal consensus to fund K-9 maintenance from the general fund going forward, with such costs to be reflected in the FY26 budget.

The committee also discussed a previously approved asset-forfeiture-funded electric patrol vehicle. Members reiterated that asset-forfeiture purchases are intended as add-on capabilities, and they debated whether the vehicle should be included in the regular replacement program or considered a one-time asset whose replacement funding would be addressed later. Some members said their intent during the budget process was to set aside asset-forfeiture funds for long-term replacement; others emphasized that tying up asset-forfeiture balances for a decade would limit other uses.

Why it matters: The replacement fund and vehicle-replacement-policy deliberations determine how the city funds long-lived capital items, balance reserve levels, and plan for future capital needs; the K-9 funding decision shifts recurring operating costs into the general fund.

What’s next: Staff will run two replacement-fund scenarios (with and without FEMA reimbursement), update the vehicle replacement schedule to include EVs, UTVs and K-9s, and present modeled alternatives and budget impacts to the committee in coming months. Police maintenance costs for Red will be included in the FY26 budget.