HomeMy WebLinkAbout422 - Equipment Rplacement FundCITY OF REDDING, CALIFORNIA
Council Policy
SU BJ ECT Resolution Policy Effective
Number Number Date Page
EQUIPMENT REPLACEMENT FUND 2001-103 422 7/1/01 l
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 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 budget via an
appropriation transfer request ( reference Council Policy 401).
F-0091 - 7/93