Equipment Revolving Plan (ERP)

Equipment Revolving Plan (ERP)

An Equipment Revolving Plan (ERP) is a method for the replacement of fleet. By directing certain general fund or local option sales tax revenues into a revolving account, the department is able to replace all fleet in each particular department over a period of fifteen (15) years.

Process

Each department provides a list of their inventory by year, years of expected service, and cost estimates.

Accounts are set up in the accounting system for each department. Certain general fund or local option sales and service tax revenues are transferred into the account each year.  Department Directors review and update the plan each fall.  The proposed expenses and all documentation is then reviewed by the City Administrator and organized for presentation to the City Council.

The first year of the Equipment Revolving Plan, will be included as part of the budget submitted for Council approval each year before March 15th.

Synopsis

The ERP Plan for 2018 totals $355,000; however, the plan shows only expenses in the amount of $242,123.00. Of the first total:

  • 23% for Street equipment ($56,000)
  • 30% for Parks equipment ($74,948)
  • 8% for Systems and Technology ($19,975)
  • 34% for Police equipment ($83,000)
  • Less than 1% for Fire and EMS equipment ($4,000)
  • Less than 1% for Community Event Center equipment ($4,200)

Since it is a revolving fund, some years there may be less revenues being transferred into the accounts and more expenses paid. Other years there will be balances revolving as there may be less expenses.

The Plan does not show any year where there are insufficient funds to make the necessary equipment purchases.