Page 122 - CityofKennedaleFY26AdoptedBudget

OVERVIEW: CAPITAL REPLACEMENT FUND

The Capital Replacement Fund (05) receives 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 on an exit strategy for 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. All remaining vehicles under
the lease agreement are expected to be purchased within FY26. Going forward this fund will be
used a fleet replacement fund. Vehicle purchases will shift here from the General Fund. An
annual transfer from the General Fund will provide a balance sufficient to replace fleet vehicles
as the need arises.

Fund 05 CAPITAL REPLACEMENT
Account Description FY24 Actual FY25 Budget FY25 Projected FY26 Budget
05-4409-00-00 MISCELLANEOUS INCOME 14,966 15,000 22,000 15,000
05-4885-00-00 EQUIPMENT SALE-GAIN/LOSS 51,159 - 1,000 -
TOTAL REVENUES $ 66,125 $ 15,000 $ 23,000 $ 15,000

Account Description FY24 Actual FY25 Budget FY25 Projected FY26 Budget
05-5601-30-17 ENTERPRISE LEASE POLICE 36,271 52,539 25,824 2,260.00
05-5602-30-17 ENTERPRISE LEASE STREETS - 7,234 3,007 920.00
05-5603-30-17 ENTERPRISE LEASE SENIOR CENTER 30 - - -
05-5604-30-17 ENTERPRISE LEASE FIRE - 11,000 4,279 490.00
05-5605-30-17 ENTERPRISE LEASE COMM DEV - 5,497 1,250 460.00
05-5606-30-17 LEASE PRINCIPAL 73,919 - - -
05-5608-30-17 ENTERPRISE LEASE CITY MNGR - 3,398 560 520.00
05-5636-30-17 LEASE INTEREST 5,699 - - -
05-5861-30-17 MOTOR VEHICLES - - -
05-5910-30-17 VEHICLES-POLICE - - - -
05-5870-30-17 OTHER EQUIPMENT - - -
TOTAL EXPENDITURES $ 115,919 $ 79,668 $ 34,920 $ 4,650

REVENUES OVER (UNDER) EXPENDITURES $ (49,794) $ (64,668) $ (11,920) $ 10,350

Account Description FY24 Actual FY25 Budget FY25 Projected FY26 Budget
05-4906-00-00 TRANSFER IN-GENERAL 120,000 139,200 139,200 139,200
05-4917-00-00 TRANSFER IN-STREET FUND 19,200 - -
TOTAL OTHER FINANCING SOURCES (USES) $ 139,200 $ 139,200 $ 139,200 $ 139,200

NET CHANGE IN FUND BALANCE $ 89,406 $ 74,532 $ 127,280 $ 149,550

BEGINNING FUND BALANCE — OCT 1 $ (291,845) $ (202,439) $ (202,439) $ (75,159)

ENDING FUND BALANCE — SEPT 30 $ (202,439) $ (127,907) $ (75,159) $ 74,391

CITYOFKENNEDALE.COM/FINANCE 121