HomeMy WebLinkAbout15.F.3. Equipment Internal Service Fund Change
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CITY OF SHAKOPEE j · 1-:3.
Memorandum
TO: Mayor and Council ;CONSEt~T
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Equipment Internal Service Fund Change
DATE: May 17 23, 2004
Introduction & Background
The Equipment Internal Service Fund currently finances the acquisition
of all mobile equipment over $20,000. This includes street sweepers,
sewer jetters, etc.
As a result of going through the implementation of GASB 34 (accounting
rule changes) I am requesting that Council approve of having enterprise
fund equipment financed through the related fund instead of the
internal service fund. The only reason the enterprise fund equipment
was included in the internal service fund was having all the equipment
in one place for budgeting. There is no practical effect to the
requested change because the affected equipment would be depreciated in
the enterprise fund, there is sufficient funding in those funds to
purchase equipment and the Five Year Equipment List will continue to
include that equipment for budget considerations.
The change will make it easier for staff to account for and reconcile
records for the new accounting rules.
Action Requested
Move to approve of transferring enterprise fund equipment and purchases
thereof from the Internal Service Fund back to the respective
Enterprise Funds.
AJ
Gregg Voxland
Finance Director
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