The purpose of this resolution is to amend the Fiscal Year 2016-17 budget for the Garage Equipment Replacement Fund by appropriating an additional $243,000 from fund reserves to purchase vehicles and other equipment. staff recommends approval of the proposed resolution.

The Garage Equipment Replacement Fund was created as an internal service fund for the purpose of setting aside funds for the future purchase of vehicles and equipment.  The Departments which utilize various vehicles and equipment are charged an amount annually to recoup the purchase price of the asset over its useful life.  When it is determined that the asset is in need of replacement (a process involving the user Department, Public Works, Finance and the City Manager), the funds are then available to make a cash purchase of the vehicles.  This best practice ensures that the City will always have sufficient funds available for the proper and timely rotation of vehicles and equipment. 

During the 2015-16 Fiscal Year approved vehicle and equipment purchases in the amount of $243,000 were unable to be completed by year end and were intended to be re-appropriated in the 2016-17 Fiscal Year budget.  While the respective purchase orders were rolled forward in the accounting system, due to an accounting oversight, the formal appropriation request did not get included in the year end rollover resolution.  As a result staff is asking that the City Council approve the attached resolution appropriating $243,000 from fund reserves so there are sufficient funds in the 2016-17 budget to complete the budget year’s scheduled vehicle and equipment replacement.

As these funds were originally set aside in the 2015-16 Fiscal Year for vehicle and equipment purchases, there is no budget impact beyond that already approved in the Fiscal years 2015-16 and 2016-17 biennial budget.

It is recommended that the City Council approve the attached resolution as presented.