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HomeMy WebLinkAboutReso 2001-103 - Council Policy 422 RESOLUTION NO. 01- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ADOPTING COUNCIL POLICY 422 (EQUIPMENT REPLACEMENT FUND) WHEREAS, the City Council is charged with the responsibility of establishing municipal policies to guide the various functions of the city and, where necessary, to establish procedures by which functions are performed; and WHEREAS, THE City Council wishes to adopt Policy 422 to assist in the budgeting process as outlined in the accompanying Report to City Council; THEREFORE, IT IS RESOLVED that the City Council adopts Council Policy 422 (Equipment Replacement Fund) , a copy of which is attached and made a part hereof, to be incorporated in the Council Policy Manual. I HEREBY CERTIFY that the foregoing resolution was introduced, read and adopted at a special meeting of the City Council on the 26th day of June, 2001 by the following vote: AYE: COUNCIL MEMBERS: Cibula, Kight, Pohlmeyer, Stegall and McGeorge NOES: COUNCIL MEMBERS None ABSENT: COUNCIL MEMBERS None ABSTAIN: COUNCIL MEMBERS None /I AiA DAVI I L. C G FRG / ayor ATTEST: FORM APPROVAL CONNIE S fROHMAYFi City Clerk W. LEONARD WINGATE, rney 174siff-73.tss CITY OF REDDING, CALIFORNIA Council Policy RESOLUTION POLICY EFFECTIVE SUBJECT NUMBER NUMBER DATE PAGE EQUIPMENT REPLACEMENT FUND 422 07/01/2001 1 BACKGROUND The City has established a Replacement Fund to accumulate resources to purchase certain equipment. The purpose of establishing the Equipment Replacement Fund is to manage equipment resources in the most efficient manner possible. In order to provide departments with the mechanism to manage their 'equipment and accumulate resources to replace certain equipment, the city needs to establish a formal 'policy regarding appropriation of funds for equipment. PURPOSE This policy would authorize department heads, with the City Manager's approval, to transfer funds accumulated in the Equipment Replacement Fund to the originating division's budget where the funds could be expended for equipment. POLICY The City of Redding has established an Equipment Replacement Fund to accumulate resources to purchase equipment. The Equipment Replacement Fund shall accumulate resources, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Equipment Replacement Fund need Council approval either in the annual budget or by amendment to the budget. A separate accounting of each division's transfers in, interest earnings and transfers out will be maintained I for the Equipment Replacement Fund. No equipment will be purchased directly from the Equipment Replacement Fund. In order to purchase equipment, cash will be transferred from the Equipment Replacement Fund to the originating division's budget. All cash transfers to the Equipment Replacement Fund, along with interest earnings, may be transferred back to the originating division's budget and expended for equipment in that division at the 'request of the department director. Council approval for the appropriation of funds is not necessary if the division's request does not exceed cash accumulated in the Equipment Replacement Fund. PROCEDURE Transfers from the Equipment Replacement Fund to the originating division's budge ,via an appropriation transfer request ( reference Council Policy 401)