Page 217 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 5 Internal Service Funds
Guidelines for Vehicle Maintenance & Replacement

Funding for vehicle/ equipment replacement should be incrementally allocated from
department operating funds to a restricted Capital Maintenance and Replacement
Fund, subject to funding availability on an annual basis. Future vehicle/ equipment
replacements should be funded from this restricted fund, which receives accumulated
operating fund transfers based upon the Vehicle and Equipment Depreciation
Schedule.

Funding will consist of an annual set-aside based upon a straight-line depreciation for
each vehicle over the course of its useful life and budgeted as part of the annual
budget development process.

Depreciation fees should commence the same fiscal year of each new and
replacement vehicle/equipment purchase. Likewise, depreciation expenses should be
expensed from the respective department operating budget and deposited into the
Capital Maintenance and Replacement Fund. Depreciation expenses shall continue
through the service life of the new vehicle/equipment and shall cease upon retirement
of said vehicle/ equipment.

REPLACEMENT AND DEPRECIATION GUIDELINES

Purpose - To provide a fiscally responsible vehicle and equipment replacement and
depreciation policy, which will enable the Town of Westlake to maximize asset utilization
while maintaining a positive public image and being fiscally responsible in our
budgeting and fleet replacement programs.

Policy - Replacement criteria for Town-owned vehicles and equipment will depend
primarily on a point system, which is based upon the following factors:

Age
Miles/ Hour Usage
Type of Service
Reliability
Maintenance and Repair Costs ( not to include incident repairs)
Condition

Point Range Chart Note: The Town may decide to retain a vehicle beyond the stated
criteria after an evaluation of anticipated usage, repairs and operating costs. Each
Town vehicle and small equipment have been placed in a specific category (as listed
below) in order to allow for uniformity in our replacement standards.

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