In accordance with the provisions of Chapter 65, 1988 Session Laws of Kansas, there is hereby established an Accumulated Depreciation Equipment Reserve Fund, which shall be used by the City to finance the replacement of equipment necessary for the performance of various functions and services of the City. For the purpose of this division, the word “equipment” shall mean machinery, vehicles and other equipment (including office equipment), or personal property which has an estimated future purchase or replacement cost in excess of $20,000.00 or a life expectancy of not less than five (5) years.
(K.S.A. 12-1,117; Code 1982)
It is the policy objective of the Board of Commissioners that the Accumulated Depreciation Equipment Reserve Fund shall be used as a financing mechanism for the planned and orderly replacement of equipment necessary for the efficient and effective operation of the City, as well as providing financial assistance for emergency replacements of equipment as deemed necessary by the Board of Commissioners. It is the further intent of the Board of Commissioners to annually approve the budgeting of sufficient revenue and/or transfers thereof to finance such equipment purchases.
A. The City Manager or his/her designee shall submit to the Board of Commissioners a plan of operation for the implementation of this ordinance, which plan shall include proposed guidelines for determining the amounts to be transferred from the various operating funds and accounts of the City’s annual budget to the Accumulated Depreciation Equipment Reserve Fund, the timing of actual money transfers, and the procedure for authorizing expenditures from such fund as well as an equipment inventory of equipment to be replaced through the accumulated depreciation method. Funds transferred to such Reserve Fund shall not be limited solely to budgeted equipment depreciation expenditure transfers, but may include other authorized budgeted transfers.
B. The City Manager shall include in the proposed budget an amount sufficient to cover necessary accumulated depreciation costs for equipment designated on the reserve equipment inventory, plus an amount approximately equal to the proposed annual expenditures for such equipment purchases.
C. The City Manager shall submit with the proposed annual budget a proposed equipment replacement program and equipment inventory for the following three years. The proposed budget shall include an amount sufficient to finance proposed equipment replacements for the following year, plus an amount to be reserved for future replacements.
Monies in the equipment reserve fund shall be invested in accordance with the provisions of K.S.A. 10-131 and amendments thereto, with interest thereon credited to such fund.