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86-9170 Est Equip Reserve Fund(Published in The Salina Journal Decembero?4 , 1986) I ORDINANCE NUMBER 86-9170 AN ORDINANCE ESTABLISHING A MUNICIPAL EQUIPMENT RESERVE FUND. BE IT ORDAINED by the Governing Body of the City of Salina, Kansas: Section 1. Fund established. In accordance with the provisions of Chapter 65, 1985 Session Laws of Kansas, 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 various functions and services of the city. For the purpose of this ordinance, 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 Five Thousand Dollars ($5,000) and a life expectancy of not less than three (3) years. not less than the current use value of existing city equipment covered by the reserve fund. Section 3. Plan of operation. (a) The City Manager shall prepare a plan of operation for the implementation of this ordinance and for the achievement of the policy objectives of the Governing Body. (b) In the year 1986, the City Manager shall include in the proposed budget for 1987 an amount sufficient to cover necessary 1987 equipment acquisition costs, plus an amount approximately equal to the average annual expenditures of the city for equipment purchases during the past five (5) years. Section 2. Policy objective. It is the policy objective of the Governing Body that such equipment reserve fund shall be used as a financing mechanism to secure the planned and orderly acquisition and replacement of equipment necessary for the efficient and effective operation of the city. It is the further intent of the Governing Body to annually approve in the future the budgeting of current revenues sufficient (a) to finance the acquisition of new equipment needed in the following year, and (b) to finance needed future replacements and acquisitions by setting aside a reserve amount. It is the planned intent of the Governing Body that the amount annually reserved shall be not less than the current use value of existing city equipment covered by the reserve fund. Section 3. Plan of operation. (a) The City Manager shall prepare a plan of operation for the implementation of this ordinance and for the achievement of the policy objectives of the Governing Body. (b) In the year 1986, the City Manager shall include in the proposed budget for 1987 an amount sufficient to cover necessary 1987 equipment acquisition costs, plus an amount approximately equal to the average annual expenditures of the city for equipment purchases during the past five (5) years. (c) Beginning in 1986, the City Manager shall annually submit, at the same time the proposed annual budget is submitted, a proposed equipment acquisition program for each of the following three (3) 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. Section 4. Investing. 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. Section 5. This ordinance shall take effect and be in full force from and after its publication once in the official city newspaper. Introduced: December 15, 1986 Passed: December 22, 1986 oseph M. Ritter, Mayor [SEAL] ATTEST: D. L. Harrison, City Clerk