In accordance with the provisions of Chapter 65, 1985 Session Laws of Kansas and with K.S.A. 12-1,117, there is hereby established a municipal equipment reserve fund, which shall be used by the city to finance the acquisition of equipment necessary for the performance of all functions of the city. For the purpose of this article, the word equipment shall mean machinery, vehicles and other equipment or personal property which has an estimated future purchase or replacement cost in excess of $1,000 and a life expectancy of not less than three years.
(Ord. 87-3, Sec. 1)
It is the policy objective of the governing body that such equipment reserve fund shall be used as a financing mechanism to secure the orderly acquisition and replacement of equipment necessary for the efficient and effective operation of the city. It is further the intent of the governing body to annually approve in the future budgeting of current revenues sufficient (a) to finance the acquisition of new equipment needed in the following year, and (b) to finance future replacements and acquisitions by setting aside a reserve amount. It is the intent of the governing body that the amount annually reserved shall be not less than the current use value of the existing city equipment covered by the reserve fund.
(Ord. 87-3, Sec. 2)
(a) The city clerk shall prepare a plan of operation for the implementation of this article and for the achievement of the policy objectives of the governing body.
(b) In the year 1987, the city clerk shall include in the proposed budget for the year 1988 an amount sufficient to cover necessary 1988 equipment acquisition costs, plus an amount approximately equal to the average annual expenditures for the last three years.
(c) Beginning in 1988, the city clerk shall annually submit, at the same time the annual budget is submitted, a proposed equipment acquisition program for each of the following five years. The proposed budget shall include an amount sufficient to finance proposed equipment acquisitions for the following year, plus an amount to be reserved as set forth in the annually revised and extended equipment acquisition program.
(Ord. 87-3, Sec. 3)
Moneys in the equipment reserve fund shall be invested in accordance with the provisions of K.S.A. 10-131 and amendments thereto, with interest earnings credited to such fund.
(Ord. 87-3, Sec. 4)