FINANCIAL POLICIES
Equipment and Vehicles: o The Fleet Replacement Fund will be used to pay for the original acquisition, replacement, ongoing maintenance, and operation of significant equipment. Equipment replacement will be determined based on age and actual and projected vehicle maintenance costs. The goal is to maximize each vehicle’s useful life, while minimizing lifetime cost. o The annual contribution to the Fleet Replacement Fund will include: internal service charges based on the allocation of vehicle expenses to user departments, interest earnings, proceeds from sale of surplus equipment, and any vehicle-related damage and insurance recoveries. o During the budget process, a list of new and replacement equipment for each department will be established through a fleet evaluation. The list of recommended new and replacement equipment purchases shall be approved by the City Council as part of the budget adoption. Technology: o The Strategic Technology Plan (STP) Fund will be used to pay for the original acquisition, replacement, ongoing maintenance, and operation of significant technology. o The annual contribution to the STP Fund will include: internal service charges based on the allocation of technology expenses to user departments, interest earnings, and any proceeds from sale of surplus technology equipment. Prior to approving the acquisition or construction of a new infrastructure asset, City staff will present to the City Council an estimate of the full cost to operate and maintain the asset through its useful life, the plan for meeting these costs, and funding availability in the applicable Repair and Replacement fund. G. Interfund Transfers and Loans Any transfers between funds for operating purposes shall be clearly set forth in the biennial budget. From time to time, interfund borrowing may be approved by the City Council, with clearly established terms and conditions for the loans. H. User Fees and Cost Recovery The City shall charge for services provided by City staff when such services benefit individual users rather than members of the community as a whole. User fees and charges shall be established at a level that fully covers both direct and indirect costs of providing the service, wherever possible, in accordance with the Cost Recovery policies and Master Fee Schedule established by the City Council. Fees shall be reviewed and updated on an ongoing basis. Development process costs and related administrative expenses shall be fully offset by development fees, wherever possible. I. Cost Allocation for Administrative and Support Functions The City shall maintain a Cost Allocation Plan (CAP) to appropriately charge special funds for central administrative and support functions costs such as executive management, legal services, personnel, equipment and facility maintenance. CAP shall be updated at least every two years.
456
FY 2023-25 Adopted Budget
Made with FlippingBook interactive PDF creator