FY2023 Adopted Budget

EQUIPMENT FUND The Equipment Fund is an internal service fund created to account for the City’s fuel facility, maintenance of the City’s vehicle and equipment fleet, and the accumulation of funds for the replacement of vehicles and equipment. Internal customers and departments and other local governments are charged labor and parts for the cost to repair vehicles and equipment by the City’s fleet maintenance division. Those charges are designed to cover the division’s actual cost of service. Fuel has also been charged at actual cost, however, starting in fiscal year 2015 a fuel surcharge was added to accumulate savings for the future replacement of the new fuel facility. These funds are reported in the replacement reserve assigned fund balance. The Equipment Fund also charges departments for the replacement cost of their vehicles and equipment. These charges are calculated at the estimated replacement cost less the estimated resale value of the piece of equipment. Purchases of new vehicles and equipment are budgeted in the departmental budgets. When new equipment is added, the departments are then charged by the reserve for their future replacement.

The graph below represents the Equipment Fund’s actual and projected fund balances.

(1) FY22 – FY24 are estimates.

The Equipment Fund’s unassigned fund balance is budgeted to decrease in fiscal year 2022 by $190,955 or 1.06% from fiscal year 2021 to $3,349,322. This budgeted decrease is directly related to a transfer to the Capital Projects fund in fiscal year 2022 for the replacement of the non-public safety radios. This project will be done in coordination with Johnson County

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