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UPDATED <br /> <br /> CASE #4 <br />10/28/91 <br /> <br /> EQUIPMENT REPLACEMENT FUND(S) <br />By: Sandra Ashley Helling, Finance Officer <br /> <br />Background: <br /> <br />All assets have now been entered into an "Asset Tracking System" and the totals <br />balanced with current and prior year ledgers of the City. To determine what the fund <br />balance should be for the City's Equipment Replacement Fund(s), useful lives have <br />been assigned to the assets. These lives are the longer of the IRS Code for depreciation <br />or the recommendation of staff. Attached is a report which details the individual <br />assets by general category, and the dollar amounts are summarized as: <br /> <br />Buildings <br />Books <br />Park equipment/improvements <br />parking lots, lights <br />EDP - Hardware <br />EDP- Software <br />Furniture <br />Machinery & Equipment <br />V chicles <br /> Total - Fixed Assets <br /> <br /> Replacement <br />Original Fund Should <br />Cost Be @ 12/91 <br />1,089,950 232,684 <br />443 80 <br /> <br />608,609 205,880 <br />222,812 162,172 <br />61,948 51,955 <br />42,570 28,215 <br />520,455 225,330 <br />905,380 507,532 <br />3,452,167 1,413,848 <br /> <br />There will be additional adjustments to the listing as more information is available, <br />and it is anticipated these adjustments will occur over the next several months. Most <br />of these adjustments will be changes in location or description of the item, and it is <br />anticipated there will be no significant adjustments to the dollar amounts shown. The <br />information we currently have confirms our "replacement" fund is significantly under- <br />funded. <br /> <br />The City's replacement fund balances are: <br /> General Equipment Replacement <br /> Fire Department Equipment Replacement <br /> Total Replacement Fund Balances <br /> <br /> 278,943 <br /> 20,621 <br />$299,564 <br /> <br />The Fire Department Equipment Replacement Fund was established as a separate fund <br />as all information was current and, unlike the General Equipment Replacement Fund, <br />the required replacement fund level was known. <br /> <br />Observations: <br /> <br />In the past we have not specifically addressed providing replacement costs for <br />buildings or park equipment/improvements. While future consideration should be <br />given to these items, removal from the Total Fixed Assets would restate the required <br />balance to that of a more traditional equipment replacement fund. <br /> <br /> <br />