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HomeMy WebLinkAbout416 - Rolling Stock Replacement FundCITY OF REDDING, CALIFORNIA Council Policy SUBJECT Resolution Policy Effective Number Number Date Page ROLLING STOCK REPLACEMENT FUND 95-178 416 08-01-95 1 BACKGROUND The City has established a Rolling Stock Replacement Fund to accumulate resources to purchase rolling stock (i.e., vehicles and related equipment). The purpose of establishing the Rolling Stock Replacement Fund was to manage rOiling stock resources in the most efficient manner possible. To provide departments with the mechanism to manage their rolling stock the City needs to establish a formal policy regarding appropriation of funds for rolling stock. PURPOSE This policy would authorize department heads, with the City Manager's approval, to transfer funds accumuiated in the Rolling Stock Repiacement Fund to the originating division's budget where the funds could be expended for rolling stock. POLICY The City of Redding has established a Rolling Stock Repiacement Fund to accumulate resources to purchase rolling stock. The Rolling Stock Replacement Fund shall accumulate resources from the sale of rolling stock, interest earnings and cash transfers from the various divisions of the City. All cash transfers to the Rolling Stock 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, sale of rolling stock, interest earnings and transfers out will be maintained for the Rolling Stock Replacement Fund. No rolling stock will be purchased in the Rolling Stock Replacement Fund. To purchase rolling stock, cash will be transferred from the Rolling Stock Replacement Fund to the originating division's budget. All cash transfers to the Roiling Stock Replacement Fund, along with revenue generated from the sale of roiling stock and interest earnings, may be transferred back to the originating division's budget and expended for rolling stock 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 the cash accumulated in the Rolling Stock Replacement Fund. PROCEDURE Transfers from the Rolling Stock Repiacement Fund to the originating division's budget via an appropriation transfer request (reference Council Policy 401). F-0091 - 7/93