An audit report for the City of Berkeley, California, found the city's equipment replacement fund fell $7.2 million short of the American Public Works Association’s recommended level in FY-2020.

The $13.2 million needed to replace vehicles and equipment overdue for replacement would use most of the $15.8 million fund balance, and the remaining funds would not be enough for future replacement needs.

The funding shortage may have contributed to the threefold increase in backlogged fleet units that surpassed their replacement date between FY-2010 and FY-2020. This shortfall may also prevent the city from adhering to its plan to transition to an electric fleet by 2030.