Page 273 - Watauga FY22-23 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.

BUDGET SUMMARY

HISTORY PROJECTED YEAR BUDGET
2019-2020 2020-2021 2021-2022 2021-2022 2022-2023
Actual Actual Budget Projected Budget
Working Capital, October 1 $2,095,530 $1,789,726 $1,494,612 $1,793,639 $1,692,399
Revenues:
Total Revenue Charges for Service $ 92,460 $ 92,890 $ 92,460 $ 92,460 $ 87,660
Other Revenues:
Interest Income 36,586 4,121 10,000 5,000 5,000
Total Other Revenue $ 36,586 $ 4,121 $ 10,000 $ 5,000 $ 5,000
Transfers-In:
Total Transfers-In $174,500 $89,000 $110,000 $110,000 $50,000
Total Revenues $303,546 $186,011 $212,460 $207,460 $142,660
Expenditures:
Motor Vehicles - CCD 0 0 0
Other Equipment - CCD 0 0 0
Motor Vehicles & Equip W&S 0 0 0
Storm Drain Vehicles and Equip 61,253 39,413 50,000 50,000 435,000
Motor Vehicles - General Fund 0 0 0
Other Equipment - General Fund 22,801 0 0 0 0
Technology Replacement - GF 198,787 0 0 0 0
Technology Replacement - FIN 0 50,000 50,000 0
Motor Vehicles - Fire 0 0 0
Fire Department Equipment 1,106 0 0 0 0
Furniture and Fixtures/Office Equip 6,798 0 4,200 4,200 0
Public Works Vehicles 116,126 94,223 90,000 90,000 0
Motor Vehicles - Parks 0 0 0
Recreation and Parks Equipment 23,397 0 0 0 0
Water Meter Program 11,604 0 37,500 37,500 50,000
Bldg/HVAC 76,495 48,462 77,000 77,000 30,000
Depreciation Expense/Transfers Out 408,341 280,366 0
Total Operating Expenditures 926,708 462,464 308,700 308,700 515,000
Operating Surplus/(Deficit) (623,162) (276,453) (96,240) (101,240) (372,340)
Working Capital, September 30* $1,472,368 $1,513,273 $1,398,372 $1,692,399 $1,320,059

*Adjusted to end of year actual Working Capital

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