2018 City of Shakopee Budget

158

2018 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

2015

2016

2017

2018

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

$2,406,772 $1,681,675 $1,109,500 $1,616,850

22

29

19

18

136

167

166

171

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. This year brings us to a sad moment when one of our old police squads, which was being used as a public works staff car (the last of our old “Crown Vics”), was determined to be at the end of its useful life. We decided it was time to sell the old goat. It will be replaced by another hand-me-down police Ford Interceptor, retired from the police department. 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.