AR 3471Equipment Reserve Fund

Failure to plan and budget for the cyclical replacement of capital assets can have drastic impacts on the general operating budget. The Equipment Reserve Fund was established by the School Board in recognition of the need to plan and budget for this cyclical replacement. This fund is dedicated to the orderly and planned acquisition and/or replacement of such capital equipment.

Revenue Source

The foundation of revenue for this special revenue fund shall stem from an annual commitment by the School Board of 20% of the District's interest income in the prior fiscal year to the Equipment Reserve Fund. This revenue shall be used solely for the purchase or replacement of capital equipment from the Equipment Reserve Fund.

Equipment Types

The District's account code structure addresses two types of equipment as follows:

Object Code 5101 Equipment – General

Object Code 5102 Equipment – Technology

Equipment – Technology refers to the computer technology related equipment, some of which is addressed in the District Technology Plan.

Equipment – General refers to all of the remaining equipment purchased throughout the District.

Equipment Replacement Plans

Technology Plan purchases made on a three-year cycle as part of the District Technology Plan are paid for through the use of E-Rate revenue out of the general fund. Equipment not covered by the Technology Plan is eligible to be purchased from the Equipment Reserve Fund.

Equipment – General Replacement Process

There will be an annual application process for buildings and departments to apply for funding for needed equipment purchases not funded by the Technology Plan. Buildings and departments will be able to apply for three specific need areas as follows:

1. Health and safety needs
2. Established program needs
3. New or additional program needs

All needs shall be reviewed and scored according to the following prioritized criteria:

1. An established life or safety concern for students, employees or members of the public
2. Directness of the link to classroom instruction
3. Useful life status of existing equipment
4. Vandalism with consideration that proper precautions have been taken to protect school equipment
5. The extent to which a building or department has contributed to equipment failure through improper use
6. Other relevant material

If the application process for the year is complete and a building experiences unexpected loss, the administrator can apply for special permission for equipment needed to provide for emergency health and safety needs.

Of the current $6.7 million in the equipment fund, $1.5 million is reserved for Information Services expenditures, $1.7 million is reserved for Charter School expenditures and $3.4 million is reserved for the Equipment-General Replacement Process.

Up to a limit of $1.5 million of the $3.47 million will be allowed to be spent for the Equipment-General Replacement Process in FY 11.