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Expenditure/Expenses Descriptions continued

MATERIALS AND SUPPLIES

This object classification is for expendable materials and operating supplies necessary to conduct
departmental activity and is consumed through use. For all funds, this classification decreased over the
prior year in an amount of -$182,991 or -6.7%. The decrease is due to line item reductions to help
balance the budget due to the economic downturn from COVD-19.

INTERNAL SERVICES

The Internal Services classification records user charges for the Fleet Service Fund and Information
Technology Fund. For Fleet Services, the formula developed for the charge back system is designed to
generate a dollar amount over the life of any given vehicle equal to the total operating expense
associated with that vehicle and its replacement cost. Information Technology charges back operating
costs based on direct and indirect expenses associated with supporting each division’s information
service needs.

MAINTENANCE

All materials or contract expenditures covering repair and upkeep of City buildings, machinery and
equipment, systems, infrastructure and land are included in this classification. Overall, maintenance
decreased -$194,830 or -5.1% due to line item reductions to help balance the budget due to the
economic downturn from COVD-19.

SUNDRY CHARGES

Sundry Charges consist of miscellaneous items that are not in the supply or maintenance category. This
classification may be used for services provided by private professional organizations, by public utilities,
for outside consultants, or payment of claims on damages against the City. Sundry charges decreased
by -$1,258,649 or -4.5%, for the 2020-2021 budget year. The decrease is primarily related to decreases
in wholesale water and wastewater and costs. The primary driver of this decrease is due to the reduction
in indirect cost allocations to help relieve funds that are suffering during COVID-19.

CAPITAL OUTLAY

This classification is for expenditure/expenses for acquiring fixed assets including land or existing
buildings, land improvements and new or replacement equipment such as machinery, furniture and
fixtures, vehicles and computer hardware and software. Capital Outlay shows a decrease of -$710,840 or
-31.69%, from the previous year. Only Street Infrastructure needs and Fire Equipment were approved in
the budget.

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