R-1188-7-93RESOLUTION NO. 118 8 — 7 — 9 3 (R)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN
COUNTY TEXAS, ADOPTING CERTAIN POLICIES DESIGNATING THE
FUNDING OF THE VEHICLE/EQUIPMENT REPLACEMENT FUND AND
REGULATING THE EXPENSES MADE FROM THE FUND.
WHEREAS, the Allen City Council desires to adopt policies designating the funding of the Vehi-
cle/Equipment Replacement Fund; and
WHEREAS, the Allen City Council desires to regulate the expenses made from the fund.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY Of ALLEN,
COLLIN COUNTY, TEXAS THAT:
SECTION 1: Beginning in fiscal year 1992-93, depreciation on all vehicles and equipment purchased
during fiscal year 1992-93 and future years will be funded in the Vehicle/Equipment Replacement Fund.
SECTION 2: The basis for calculating depreciation will be the replacement cost less the salvage value
divided by the life expectancy of the vehicle or equipment.
SECTION 3: Depreciation on vehicles and equipment purchased in years prior to 1992-93 will be
funded over a period of several years. Departments which have vehicles and equipment will determine
the accumulated depreciation on the vehicles and equipment and will determine a schedule for funding
the depreciation.
SECTION 4: Funding for the depreciation will be transferred from the General Fund, the Water and
Sewer Fund and other operating funds that are added in the future and will be based on the depreciation
funding schedule. Transfers to the Vehicle/Equipment Replacement Fund may also be made based on
favorable fund balances in the General Fund, Water and Sewer Fund and other funds that may be added.
SECTION 5: All vehicles, including fire engines and heavy equipment, having a value of $7,500 or
more will be purchased from the Vehicle/Equipment Replacement Fund beginning in fiscal year 1993-94.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, TEXAS, ON
THE 1ST DAY OF JULY, 1993.
APPROVED
' oe Farmer, MAYOR
ATTEST:
J Mor on, CMC, CITY SECRETARY