Page 73 - PowerPoint Presentation

INTERNAL SERVICE FUND OVERVIEW

Internal Service Funds are comprised of the following: (1) Utility Maintenance and Replacement
Fund 510; (2) General Maintenance and Replacement Fund 600; (3) Utility Vehicle Maintenance and
Replacement Fund 505; and (4) General Vehicle Maintenance and Replacement Fund 605.

The Maintenance and Replacement Funds provide money to plan for future facility financial
requirements. Given the size and complexity of the Town’s facility infrastructure, we will strive to
continue our practice of transferring money into these funds as economically prudent. Many of the
smaller daily maintenance efforts of the facilities are absorbed into the various operating budgets,
as appropriate. However, we recognize that it is important to have a proactive maintenance program
that addresses larger scale projects and prudently prepares for increased maintenance and repair
costs as the facilities age.

The Vehicle Replacement Fund accounts for the resources needed to manage the purchase of
vehicles and heavy equipment for the Town’s fleet. The establishment and funding of the vehicle
and heavy equipment replacement program was designed to even out expenses for the Town’s fleet
from year to year and provides a logical method for purchasing and retiring vehicles. A five-year
purchase plan has been developed to detail future capital investment needs.

FUND HIGHLIGHTS

REVENUES
Budgeted to be $2.98M; an increase of $2.3M from prior year revised.

Contribution & Investment Earnings - ($65,775)
Decreased $303K; due to one-time donation and new projected interest rates.

Transfers in from Other Funds - ($2.9M)
Increased $2.7M; The transfers in from other funds consists of the following:
 $65K from Utility Fund to Utility Vehicle Maintenance and Replacement Fund 505;
 $350K from Utility Fund to Utility Maintenance and Replacement Fund 510;
 $1.5M from General Fund to General Maintenance and Replacement Fund 600; and
 $1M from General Fund to General Vehicle Maintenance and Replacement Fund 605.

EXPENDITURES
Budgeted to be $2.0M; a 85% increase of $933K from the prior year revised. These expenditures consist
of the following:

 Fire Dept Equipment ($78,287) – Extrication Equipment, LifePak, and Training Manikin
 Fire Dept Motor Vehicle ($145,000) – Command Suburban and ATV
 Maintenance and repair for pump station equipment, sewer easement cleaning machine, water
main repair and maintenance, lift station repair, duct bank repair, and sewer line repair
($514,000).

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