Focus Area: Economy
Staff Contact: Clara Bernauer, Lucas Mellinger
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title:
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Report on Amending the Vehicle and Equipment Replacement Fund Budget for FY2026.
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recommended motion:
No motion needed.
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Summary:
The Vehicle & Equipment Replacement Fund (VERF), which accounts for the City’s capital fleet replacements, carries large fund obligations that can span multiple fiscal years. The annual operating budget is adopted with estimates on when obligations will be realized, but supply chain issues have exacerbated timing delays between vehicle orders and delivery dates, leading to a variance between actual expenditures and the adopted budget of 2026. Approximately $8.9M in vehicle purchases that have occurred in 2026 were related to purchase orders from as far back as fall of 2022. This included five Fire apparatuses, totaling nearly $5.2M. The City is proposing to amend the 2026 VERF budget to allow legal authority to expend funds previously allocated in prior budget years that are only now occurring.
City staff will continue to monitor this issue for FY2027.
Kansas statute requires that a public hearing be held prior to the adoption of amendments to the current year budget. Notice of a public hearing will be published on November 3rd. A public hearing will be held on November 17th. Adoption of this budget amendment is recommended for December 1st.
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Financial Information:
As a result of this amendment, the 2026 Vehicle & Equipment Replacement Fund (VERF) legal budget authority will increase from $12,950,236 to $22,166,989. The VERF is an internal service fund, funded through operating fund contributions via internal lease fees. It is important to note that the proposed amended fleet expenditures were previously authorized by Council in prior fiscal budget years.
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Attachment(s):
A. Drafted Amended Certificate for Calendar Year 2026