POLICY STATEMENT
To manage the Fleet Management System Reserve fund that is used to cover all operating, maintenance and vehicle and mobile equipment replacement costs.
REASON FOR POLICY
To set guidelines for the management of the Fleet Management System Reserve fund.
RELATED INFORMATION
Cross-reference to the Fleet Management System policy # 701.
The Revolving fund is to be self-supporting through a rental rate system recovering costs from each department for its respective equipment usage. When annual profits occur in the fleet budget they shall be deposited into the Revolving Fund, and when losses occur they shall be offset by the Revolving Fund. The Revolving Fund shall be no higher than a level equal to the difference between the replacement cost and the current value of all fleet units.
Interest generated by the Revolving Fund shall be retained in the Fleet Management Reserve Fund.
RESPONSIBILITIES
City Council will approve the revenue sources and expenditures from the Fleet Management System Reserve Fund.