PRESENTER: Presenter
Karrie Cook, Budget Manager
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SUBJECT: Title
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Approval of an FY 2025 budget amendment for the Fleet Services Fund and the Solid Waste Fund to complete the purchase of a fleet service replacement vehicle originally funded in FY 2023.
DEPARTMENT: Fleet Services and Solid Waste
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
In FY 2023, City Council approved funding to purchase multiple heavy-duty trucks to support various city operations. These vehicles were authorized in the FY 2023 Enterprise Equipment Replacement Fund budget as replacements for other vehicles being retired from service.
Due to extended delivery timelines, the vehicle initially set for delivery in FY 2023 is now scheduled to be delivered in FY 2025. The Enterprise Equipment Replacement Fund was closed in FY 2024, and procedures were amended so that all Enterprise/Internal Service Funds could purchase vehicle and equipment replacements directly from their respective funds.
In FY 2023 when this vehicle was originally funded, the Fleet Department was a division under the Solid Waste Fund. Since then, the two have separated into different Funds. To ensure that Solid Waste covers the cost of the purchase, but the vehicle asset is associated with the Fleet Fund, the following needs to occur; the Fleet Services Fund will receive an interfund transfer (revenue) from the Solid Waste Fund (expense) for the vehicle's full price. Staff recommends increasing the Solid Waste Fund budget to account for the interfund transfer to the Fleet Services Fund.
Budget Amendment - The following amendment is necessary to fund capital expenditures for the above-referenced F-550 heavy-duty service truck within the Fleet Services Fund and account for the interfund transfer from the Solid Waste Fund to the Fleet Services Fund.
ISSUE:
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FISCAL IMPACT:
With the approval of the budget amendment, sufficient budget will be available in the Fleet Services Fund to cover the above-referenced vehicle replacement purchase. While this amendment will increase the Fleet Services Fund capital expenditure budget, the budgeted interfund transfer revenue into the Fleet Services Fund will result in a net-zero impact within the FY 2025 Fleet Services Fund budget. The Solid Waste Fund has a sufficient fund balance dedicated to equipment and vehicle replacements to cover the interfund transfer expenditure.
Recommendation
RECOMMENDATION:
Staff recommends approval this budget amendment.