In accordance with the provisions of K.S.A. 12-1,117, there is hereby established a municipal equipment reserve fund, which shall be used by the City to finance the acquisition of equipment necessary for the performance of various functions and services of the City. For the purpose of this ordinance, the word “equipment” shall mean machinery, vehicles and other equipment or personal property which has an estimated future purchase or replacement cost in excess of $5,000 and a life expectancy of not less than three years.
It is the policy objective of the Governing Body that such equipment reserve fund shall be used as a financing mechanism to secure the planned and orderly acquisition and replacement of equipment necessary for the efficient and effective operation of the City. It is the further intent of the Governing Body to annually approve in the future the budgeting of current revenues sufficient (a) to finance the acquisition of new equipment needed in the following year, and (b) to finance needed future replacements and acquisitions by setting aside a reserve amount. It is the planned intent of the Governing Body that the amount annually reserved shall be not less than the current use value of existing City equipment covered by the reserve fund.
(a) The city staff shall prepare a plan of operation for the implementation of this ordinance and for the achievement of the policy objectives of the Governing Body.
(b) In the year 1985, the city staff shall include in the proposed budget for 1986 an amount sufficient to cover necessary 1986 equipment acquisition costs, plus an amount approximately equal to the average annual expenditures of the City for equipment purchases during the past five years.
(c) Beginning in 1986, the city staff shall annually submit at the same time the proposed annual budget is submitted, a proposed equipment acquisition program for each of the following three years. The proposed budget shall include an amount sufficient to finance proposed equipment acquisitions for the following year, plus an amount to be reserved as set forth in the annually revised and extended equipment acquisition program.
Moneys in the equipment reserve fund shall be invested in accordance with the provisions of K.S.A. 10-131 and amendments thereto, with interest earnings credited to such fund.
(Ord. 540, Sec. 1:4)