Page 283 - City of Watauga FY22 Adopted 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 FY2013-2014 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 FY2014-2015 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 ESTIMATE
2019-2020 2020-2021 2020-2021 2021-2022 2022-2023
Actual Budget Projected Budget FORECAST
Working Capital, October 1 $2,095,530 $1,145,499 $1,789,726 $1,494,612 $1,398,372
Revenues:
Total Revenue Charges for Service $ 92,460 $ 92,460 $ 92,460 $ 92,460 $ 92,460
Other Revenues:
Interest Income 36,586 10,000 10,000 10,000 10,000
Total Other Revenue $ 36,586 $ 10,000 $ 10,000 $ 10,000 $ 10,000
Transfers-In:
Total Transfers-In $174,500 $89,000 $89,000 $110,000 $110,000
Total Revenues $303,546 $191,460 $191,460 $212,460 $212,460
Expenditures:
Motor Vehicles - CCD 180,000 180,000 0 140,000
Other Equipment - CCD 0 0 0 0
Motor Vehicles & Equip W&S 89,000 89,000 0 0
Storm Drain Vehicles and Equip 61,253 76,000 76,000 50,000 427,000
Motor Vehicles - General Fund 0 0 0 0
Other Equipment - General Fund 22,801 12,000 12,000 0 0
Technology Replacement - GF 198,787 0 0 0 4,000
Technology Replacement - TS 0 0 0 0
Technology Replacement - FIN 35,000 0 50,000 20,000
Motor Vehicles - Fire 0 0 0 0
Fire Department Equipment 1,106 0 0 0 0
Furniture and Fixtures/Office Equip 6,798 25,074 25,074 4,200 24,000
Public Works Vehicles 116,126 0 0 90,000 90,000
Motor Vehicles - Parks 0 0 0 0
Recreation and Parks Equipment 23,397 30,000 30,000 0 0
Water Meter Program 11,604 37,500 37,500 37,500 37,500
Bldg/HVAC 76,495 37,000 37,000 77,000 30,000
Depreciation Expense/Transfers Out 408,341 100,000
Total Operating Expenditures 926,708 621,574 486,574 308,700 772,500
Operating Surplus/(Deficit) (623,162) (430,114) (295,114) (96,240) (560,040)
Working Capital, September 30* $1,472,368 $715,385 $1,494,612 $1,398,372 $838,332

*Adjusted to end of year actual Working Capital

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