REVENUE AND EXPENDITURE ASSUMPTIONS
INTERNAL SERVICE
The City uses internal service funds to provide services to the operating departments on a cost reimbursement basis. These services are funded by internal service charges, which are collected from the operating departments. Costs are allocated to departments for compensated absences (i.e. time off earned but not yet used), information technology, Civic Center maintenance, telephone, mail, print services, and equipment rent based on usage and consumption. Approximately 80 percent of the increases in internal service charges are from changes in equipment rent and department related technology charges. Equipment rent is designed to recover the maintenance, replacement and fuel cost of City vehicles and equipment. The FY 2019-20 internal service charge to the departments for equipment rent was increased to reflect the full cost recovery method of services provided and replacement schedules. Charges also increased due to larger on-going projects, such as the Public Safety computer aided dispatch and records management system, the upgrade of the City’s Enterprise Resource Program (ERP) system, and the replacement of the City’s building and safety permitting system, anticipated to cost $6 million over the five-year period.
FY 2019-21 Proposed Budget
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