Page 232 - Watauga FY21 Budget

PROPRIETARY FUNDS

EQUIPMENT REPLACEMENT FUND
Internal Service Fund – 22 Budget Summary

The Internal Service Fund is used to account for the acquisition of various replacement capital
items in the City. The objective of the fund is to accumulate sufficient funds to meet the capital
needs of the City. The fund is accounted for on the modified accrual basis of accounting.
Revenues are recorded when available and measurable, and expenditures are recorded when
the liability is incurred.

Beginning in the FY2013-14 Budget Year, the use of the Equipment Replacement Fund was
enhanced for all the City one-time purchases for all funds. We have continued this commitment
this year and have evaluated prior year purchase equipment, vehicle, technology, and building
maintenance needs. We began funding a portion of these future needs in FY2014-15 Fiscal
Year as the Legacy Program. Transfers for capital financing of major equipment purchases will
be made from funds on an annual basis based on the purchases made per fund.

HISTORY PROJECTED YEAR BUDGET
2017-18 2018-19 2019-20 2019-20 2020-21
Actual Actual Budget Projected Budget
Working Capital, October 1 $1,514,279 $1,606,067 $1,812,289 $1,812,289 $1,145,499
Revenues:
Total Revenue Charges for Service $ 407,040 $ 402,550 $ 316,946 $ 94,710 $ 92,460
Other Revenues:
Interest Income 32,574 66,038 25,000 35,000 10,000
Total Other Revenue $ 32,574 $ 66,038 $ 25,000 $ 35,000 $ 10,000
Transfers-In:
Total Transfers-In $500,000 $174,500 $12,500 $12,500 $89,000
Total Revenues $939,614 $643,088 $354,446 $142,210 $191,460
Expenditures:
Motor Vehicles - CCD 289,000 35,000 0 0 180,000
Other Equipment - CCD 59,000 15,000 0 0 0
Motor Vehicles & Equip W&S 0 29,000 133,000 133,000 89,000
Storm Drain Vehicles and Equip 36,989 31,000 0 0 76,000
Motor Vehicles - General Fund 14,895 0 0 0 0
Other Equipment - General Fund 0 0 18,000 18,000 12,000
Technology Replacement - GF 0 0 266,800 255,400 0
Technology Replacement - TS 0 0 0 0 0
Technology Replacement - FIN 20,146 0 0 0 35,000
Motor Vehicles - Fire 230,936 0 0 0 0
Fire Department Equipment 0 21,500 12,500 12,500 0
Furniture and Fixtures/Office Equip 0 0 19,100 19,100 25,074
Signage 0 7,500 7,500 7,500 0
Motor Vehicles - Parks 0 0 0 0 0
Recreation and Parks Equipment 0 40,500 43,000 29,000 30,000
Water Meter Program 27,410 37,500 37,500 37,500 37,500
Bldg/HVAC 5,972 3,971 117,000 97,000 37,000
Depreciation Expense/Transfers Ou 163,478 221,563 200,000 200,000 100,000
Total Operating Expenditures 847,826 442,534 854,400 809,000 621,574
Operating Surplus/(Deficit) 91,788 200,554 (499,954) (666,790) (430,114)
Working Capital, September 30* $1,606,067 $1,806,620 $1,312,335 $1,145,499 $715,385
*Adjusted to end of year actual Working Capital

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