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HomeMy WebLinkAbout2.03.002_Fleet Services Capital and Maintenance Reserve Fund PolicyCITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT/TITLE: POLICY NO: APPROVED BY: APPROVAL DATE: FLEET SERVICES CAPITAL AND MAINTENANCE RESERVE FUND 2.03.002 ☒ MINUTE ORDER 5/14/2019 Page 1 of 1 1. PURPOSE The purpose of this policy is to establish a Fleet Services Capital and Maintenance Reserve Fund. This policy will guide decisions relating to the scale of the reserve fund and the use of these funds. 2. POLICY To set aside sufficient savings to ensure the Fleet Services shop interior capital improvement and maintenance needs are met, and critical equipment replacements are funded, including Fleet vehicles, the City establishes the following Fleet Services Capital and Maintenance Reserve Fund policy: 1. The Fleet Services Capital and Maintenance Reserve Fund balance target is established at two hundred thousand dollars ($200,000). 2. City may transfer, with appropriations, retained earnings from the Fleet Services Fund into the Fleet Services Capital and Maintenance Reserve Fund until the target is met. 3. City Manager may authorize transfer of any Fleet Services Fund retained earnings, after the payment of debt service and on-going capital costs, into the reserve account. Transfer must be consistent with budget policies and procedures. 4. Allowable uses of Fleet Services Capital and Maintenance Reserve Fund are as follows: a. Capital improvements and deferred maintenance for the Fleet Services shop interior and replacement of equipment, including Fleet vehicles, used by Fleet Services. 5. The Fleet Services Capital and Maintenance Reserve Fund may fluctuate above and below the two hundred thousand dollars ($200,000) target balance to facilitate the allowable uses described above. 6. Once the Fleet Services Capital and Maintenance Reserve Fund is fully funded, any retained earnings not used to pay for operational expenses will be used to reduce future service charges to Departments. 3. BACKGROUND The establishment of a policy for Fleet Services Capital and Maintenance Reserve Fund was identified as a Goal in the Fiscal Year 2017-18 budget. REVISION HISTORY: 5/14/2019: AMENDED TO INCLUDE FLEET VEHICLES AS AN ALLOWABLE USE OF FUNDS 6/26/2018: APPROVED BY MINUTE ORDER