The City of Killeen, Texas, is creating a fleet replacement fund after City Council approved the project on Jan. 26. Under the program, departments will make monthly payments into the fleet funding program based on the depreciable value of each vehicle, the Killeen Daily Herald reported.
To establish the fleet funding program, the city will transfer $1 million from 2014 Certificate of Obligations, $3 million from Solid Waste, and $3.5 million from Water and Sewer to the fund, according to city documents. Additionally, the city will provide $3.5 million for fiscal-year 2016 vehicle purchases. The city spends an average of $3.4 million a year on fleet purchases.
“The Fleet Funding Program will ensure that adequate funds are available to purchase vehicles and equipment, to stabilize budgeting for major purchases, and to provide a systematic, city-wide approach to procurement and disposition of the fleet. The goal is to provide sufficient cash flow for annual purchases,” according to a City Council memo regarding the fund.