KANNAPOLIS — The city of Kannapolis is currently putting together its Imagine Kannapolis Strategic Plan to improve and build upon several “focus areas” in order for the entire community to thrive over the next several years.

As part of that plan, Assistant to the City Manager Kristin Jones centered in on Kannapolis’ six-year capital outlay needs and its replacement process during Monday night’s meeting.

Capital outlay refers to any “expenditure expected to have a useful life greater than than one year or a total value of $5,000 or more” according to Jones. These include aging or broken city-owned vehicles, machinery and equipment. Jones noted that although the city has done a good job of raising salaries, replacing regularly used equipment also does well for employee morale.

Jones admitted that Kannapolis does not have a clear policy on changing out equipment, so some items have become overused. When the city receives requests to replace an item, Jones says, “We prioritize them based on our budget capacity and our cash reserves.”

The funding plan sets aside $3-4 million, allocated mostly from cash reserves, every year until 2029, totaling around $23 million. Depending on the price and urgency of each request, Kannapolis can use several options to finance them. For items with a higher price, short-term financing options might be more viable. Jones said that it’s best to use the operating budget for purchases that have a life expectancy of less than 7-10 years and cash reserves for purchases that have a life expectancy greater than 7-10 years.

For the upcoming fiscal year, funds are mainly going towards replacing vehicles, equipment and filling new job positions. To give the city a better idea on what is needed and how it should be financed, requests for new equipment extend three years out. Over $6 million in requests have already been made for both 2025 and 2026.

Due to long lead times, some of these project accounts span multiple fiscal years. When an order will not arrive within the same fiscal year, Jones explained that funding will roll forward for when it actually arrives. “It’s kind of a unique approach to things. We typically haven’t had this long of a lead time on equipment,” Jones said.

The Imagine Kannapolis Strategic Plan will be formally approved by city council in the coming months.