Page 81 - CityofKennedaleFY23Budget

FUND OVERVIEW: CAPITAL FUNDS

There are three funds included in this section as follows –
1) Fund 04 Capital Projects fund receives revenues from franchise fees from the City’s
waste collection contractor Waste Connections for landfill revenue. Funds are
transferred to Fund 02 Debt Service to pay for debt requirements related to
improvements to Dick Road, the road that leads to the landfill.
2) Fund 05 Capital Replacement Fund receives funds through transfers from other funds
that utilize vehicles. The fund pays for vehicles through a lease with Enterprise Lease.
In December 2016, a lease was signed with Enterprise for a majority of its vehicles. In
2020, the City determined that the lease was not in the best interest and has been
working an exit strategy on the lease that includes purchasing vehicles and allowing
vehicles under the lease to continue to be utilized at a small cost per month ($30-$50)
until full expiration of the lease. Under the terms of the lease the vehicles remain the
property of Enterprise and cannot be purchased by the City.
3) Fund 13 Capital Bond Fund receives proceeds from bonds and records the expense
associate with the bond proceeds. A $5.7M bond issue occurred in October 2021 for an
ambulance, fire truck, and street repairs. The ambulance was ordered and received and
paid for in September 2022. The fire truck is on order and expected to be received in
FY23. Street repairs are in the engineering design stage and no formal sealed bids have
been issued yet. Expenses for the bonds are included in this budget.

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