Cost Savings Proposal Coming Soon
One of the most frequently asked questions asked especially around tax time is, "Just what are you doing to keep our taxes down?" Asked or not, this is a very valid expectation that we should all have regarding our city’s operation.
Sometimes this is difficult for me to answer because on a day-to-day basis I think everything we (the city) does should be on a needs-only, efficient, and timely manner and to single out any particular functions among the many functions that our departments do boggles the mind.
Here is some good news. You should be hearing and reading about an energy cost savings project we’d initiated last year with Johnson Controls. At our May 8th COW (Committee of the Whole) meeting Johnson Controls outlined the results of their 6 month study and made recommendations that we will discuss and most likely approve at our next council meeting on May 15.
Johnson reps worked closely with all departments and especially our Director of Finance to identify areas that would most benefit our fair city in the next 10 years. They identified 20 areas which could realize savings and that were in need of change anyway. They propose a course of action which would replace light fixtures, ventilation systems, boilers, and other similar kinds of equipment that would save us tax dollars for many years to come.
Our expected costs of making these changes are to be paid for by the savings and are guaranteed by Johnson Controls. We’re looking at roughly a $6,000,000 cost/savings to be realized in a 10 year payback – 12 years with amortization costs and a very conservative savings estimate. They guarantee a cost savings of around $650,000 a year for the life of the contract and, if not met, they will pay us the difference.
Our current utility costs had been used for the projections and so with the estimated rising costs of energy we expect the savings to be even higher than planned for. In addition labor savings attributed to the proposed improvements also had not been factored in which would increase the overall cost savings for us.
Keep tuned. I think this is a really exciting and different way to run our city and am excited to get started on this proposal.
As always, if you have any questions, comments, or just want to talk give me a call.
Bob
285-0295 bobnow@charter.net
Sometimes this is difficult for me to answer because on a day-to-day basis I think everything we (the city) does should be on a needs-only, efficient, and timely manner and to single out any particular functions among the many functions that our departments do boggles the mind.
Here is some good news. You should be hearing and reading about an energy cost savings project we’d initiated last year with Johnson Controls. At our May 8th COW (Committee of the Whole) meeting Johnson Controls outlined the results of their 6 month study and made recommendations that we will discuss and most likely approve at our next council meeting on May 15.
Johnson reps worked closely with all departments and especially our Director of Finance to identify areas that would most benefit our fair city in the next 10 years. They identified 20 areas which could realize savings and that were in need of change anyway. They propose a course of action which would replace light fixtures, ventilation systems, boilers, and other similar kinds of equipment that would save us tax dollars for many years to come.
Our expected costs of making these changes are to be paid for by the savings and are guaranteed by Johnson Controls. We’re looking at roughly a $6,000,000 cost/savings to be realized in a 10 year payback – 12 years with amortization costs and a very conservative savings estimate. They guarantee a cost savings of around $650,000 a year for the life of the contract and, if not met, they will pay us the difference.
Our current utility costs had been used for the projections and so with the estimated rising costs of energy we expect the savings to be even higher than planned for. In addition labor savings attributed to the proposed improvements also had not been factored in which would increase the overall cost savings for us.
Keep tuned. I think this is a really exciting and different way to run our city and am excited to get started on this proposal.
As always, if you have any questions, comments, or just want to talk give me a call.
Bob
285-0295 bobnow@charter.net
posted by Bob Nowicki | 7:11 PM
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