Budget and Financial Planning

It is the policy of the Board of County Commissioners (BOCC) to budget for the orderly replacement of existing capital and non-capital assets through the annual operating budget and Capital Improvement Program (CIP). Funding for the replacement of capital assets which have a cost of at least $100,000 and have a useful life of at least five (5) years shall be budgeted through the CIP (see section 130 Capital Improvement Program). The replacement of all other existing capital and non-capital assets shall be included in the annual operating budget.

Responsibilities:

The County Manager is responsible for recommending a prudent, balanced annual operating budget to the BOCC for adoption that includes the orderly replacement of existing capital and non-capital assets.

The Director of Budget and Financial Planning is responsible for compiling agency and department asset replacement schedules and assisting the County Manager with a recommendation regarding the amount of asset replacement funding to include in the proposed operating budget.

Elected officials, agency directors, and department directors are responsible for preparing, submitting, explaining, and justifying annual asset replacement schedules.

Definitions:

A capital asset is defined in section 160 Capital Assets.

A non-capital asset is an asset with a cost of $1,000 to $10,000 and a useful life of three (3) years or more.

An asset replacement schedule is a schedule that itemizes relevant financial information, including estimated replacement costs, for existing capital and non-capital assets in a given agency or department.

Procedure 140.1 Introduction

1. Elected officials, agency directors, and department directors shall submit capital and non-capital asset replacement schedules annually as part of the operating budget process in a format determined by the Director of Budget and Financial Planning.
2. The Director of Budget and Financial Planning and staff shall compile the submitted capital and non-capital asset replacement schedules and assist the County Manager in formulating a recommendation for asset replacement financing as part of the proposed operating budget.
3. An asset replacement project account(s) shall be established for each agency and department, if applicable.
4. In the first quarter of each year, the Budget and Financial Planning Department shall transfer capital and non-capital replacement funding approved by the BOCC in the annual operating budget to the appropriate asset replacement project accounts for each agency and department.
5. Elected officials, agency directors, and department directors shall manage the asset replacement project accounts to ensure that existing capital and non-capital assets are replaced in an appropriate and orderly manner.
6. Existing asset replacement project accounts shall be reviewed on an annual basis by the County Manager or his/her designee(s) to ensure balances are necessary and appropriate.
7. The County Manager may decrease or eliminate the balance of an asset replacement project account if he/she feels the existing balance is larger than necessary. The County Manager or his/her designee(s) shall inform the elected official, agency director or department director of the County Manager’s decision.
8. Any excess funds identified by the County Manager in asset replacement project accounts shall be returned to the original funding source(s).
9. The Budget and Financial Planning Department shall maintain documentation for all asset replacement project accounts.