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APPROVED BUDGET FISCAL YEAR 2022-2023

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 increased over the
prior year by 3.64%. The increase is due to primarily to inflationary pressures.

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.
Internal services are budgeted to increase by 4.23% to mitigate inflationary pressures on project, wages,
and other costs necessary to continue to maintain our fleet and information technology infrastructure.

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 is
budgeted to remain essentially flat with a slight decrease of -0.52%.

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 are budgeted
to increase by 9.73%. This is being driven by the effects of inflation in contracted services and other
related items such as utilities, workers compensation and other liability insurance requirements that are
increasing in the aftermath of winter storm Uri.

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 budget have an increase of
23.77%. This large increase includes the operationalization of maintenance programs targeted towards
our infrastructure that qualify as a capital expenditure. Additionally, there are one-time equipment and
vehicle replacements scheduled in the budget based upon our regular replacement program.

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