FY25 Proposed 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.

Fund Balance (1)

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0

FY2022

FY2023

FY2024

FY2025

FY2026

Designated for Equip $17,488,464

$17,990,484

$17,222,268

10,196,168

10,991,814

Unassigned

$2,664,324

$3,064,920

$3,589,290

$3,975,290

$4,356,567

(1) FY24 – FY26 are estimates.

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