2022 City of Shakopee Budget

176

2022 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

2019

2020

2021

2022

Vehicles and Equipment in Service Cost of Vehicles Added/Replaced # Vehicles added/replaced

347,037

1,035,616

1,019,500

1,248,300

7

21

11

24

370

381

383

390

Budget Impact:

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.

Capital Improvement Program:

The City prepares a five year capital improvement program (CIP). A separate CIP document was approved by Council on September 21, 2021. 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.