2023 City of Shakopee Budget

184

2023 Annual Budget

Equipment Internal Service Fund

Fund:

Establishment

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. 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

Projected

Projected

2020

2021

2022

2023

Cost of Vehicles Added/Replaced # Vehicles added/replaced

1,035,616

1,085,209

1,248,300

733,500

21

14

24

14

Budget Impact:

Capital Improvement Program: The City prepares a five year capital improvement program (CIP). A separate CIP document was approved by Council on October 4, 2022. The CIP book provides a summary of each project location, description and source and use of funds. The CIP book also provides a cashflow for the fund. 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.