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 acquisition of equipment
necessary for all functions and services 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 $5,000 and a life expectancy
of not less than three years.
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
to finance the acquisition of new equipment needed in the following
year and 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.
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.