An Equipment Replacement Plan (ERP) is a method for the replacement of equipment. By directing certain general funds or local option sales tax revenues into a revolving account, the department is able to replace all equipment in each particular department over a period of fifteen (15) years.
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 funds or local option sales 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 Equipment Replacement Plan is included as part of the budget submitted for Council approval each year before March 30th.
The ERP for the Fiscal Year 2023 totals revenues in the amount of $345,000 from a Local Option Sales Tax transfer. The plan shows expenses in the amount of $390,000:
- Street equipment - $300,000
- Systems and Technology - $14,000
- Police equipment - $67,000
- Fire and EMS equipment - $6,000
Since it is a revolving fund, some years may include fewer revenues being transferred into the accounts and more expenses paid. Other years, the opposite is true. The ERP does not show any year where there are insufficient funds to make the necessary equipment purchases.