2019 City of Shakopee Budget

154

2019 Annual Budget

Fund:

Equipment Internal Service Fund

Description of Services:

This fund finances the multi-year Equipment Plan. Financing to purchase equipment is provided by "rent" payments from the operating departments at rates established annually by the Finance Department as part of the budget process. Equipment for the Sewer and Storm Drainage enterprise funds is not included. The Equipment Fund shall "own" and acquire larger pieces of equipment including but not limited to cars, trucks, graders, loaders, tractors and larger mowers or items generally costing $20,000 or more.

Key Measures:

Actual

Actual

Budgeted

Budgeted

2016

2017

2018

2019

Cost of vehicles added/replaced # Vehicles added/replaced Vehicles and Equipment in Service

$1,681,675 $1,649,785 $1,661,850

$823,900

14

16

11

11

167

323

325

325

Establishment:

The Equipment Fund was established by Resolution #4077 in 1994.

Budget Impact:

Unlike most consumers who wish they had saved in advance, this is what the city does to avoid borrowing money. Prudent planning with a smart strategic replacement plan ensures vehicles are replaced at the right time. The Finance and Public Works Departments work closely with the city’s vehicle users to ensure we meet all the city’s vehicle needs. With nearly 400 pieces of equipment and vehicles, it is important to have a well-planned vehicle replacement program. For the larger, more expensive vehicles (e.g., cars, trucks, police squads, fire engines, etc.), the city charges city departments rent for the replacement of the vehicles. Yes, the city charges the city. The home department/division for the vehicle contributes a rent amount to the Equipment Internal Service Fund to ensure adequate funds are in place for the purchase of the vehicle at time of replacement.