Ordinance No. ___________
AN ORDINANCE ESTABLISHING A SOLID WASTE VEHICLE AND
EQUIPMENT REPLACEMENT PROGRAM
WHEREAS, it is imperative that city have operable solid waste vehicles and
equipment to provide the highest level of municipal solid waste services; and
WHEREAS, failure to maintain up to date solid waste vehicles and equipment
often means that the city is unable to provide a high level of municipal solid waste
services due to excessive operating and maintenance cost including down time, when
vehicles are being repaired; and
WHEREAS, serviceable solid waste equipment is necessary for providing
garbage collection services for the health, sanitation and safety of the citizens of the city;
and
WHEREAS, it is desirable to spread out the costs for solid waste vehicles and
equipment over a period of time instead of having high tax increases to make expensive
equipment purchases; and
WHEREAS, it is also desirable that solid waste equipment funds be reserved in a
separate fund to avoid high tax increases to make expensive equipment purchases; and
NOW, THEREFORE, BE IT ORDAINED by the Board of Mayor and
Aldermen of the City of Jellico that the following vehicle and equipment replacement
program is hereby established:
Section 1. There is hereby established a solid waste vehicle and equipment fund
for the City of Jellico. Funds deposited therein shall be used for no other purpose than
the purchase of new solid waste vehicles and equipment and as herein provided. Any
interest accumulated in the fund shall become a part of the equipment reserve fund.
Section 2. Existing solid waste garbage trucks and pickup trucks shall have their
use full life estimated and based upon the estimates depreciation values shall be
determined. Beginning on January 1, 2004 an amount for the depreciation for each piece
of equipment shall be deposited monthly into the solid waste vehicle and equipment fund
for the City of Jellico.
Section 3. Upon purchase of a garbage truck, the annual depreciation value for
the first seven years shall hereby be deposited in the solid waste equipment replacement
fund. At the end of seven years the car garbage truck shall be sold, in accordance with
city purchasing and disposal policies and procedures, and the sales proceed along with
the accumulated depreciation value in the replacement fund shall be used toward the
purchase price of new equipment.
Section 4. Pick up trucks shall be replaced as follows:
A six-year usable life is hereby established for solid waste pickup trucks. Upon the
purchase of a new pickup truck, the annual depreciated value over six (6) years is
deposited in the equipment replacement fund established in Section 1. The pickup truck is
sold, in accordance with city purchasing and disposal policies, and the sales proceeds and
accumulated depreciation value is paid out of the equipment replacement fund toward the
purchase price of a new vehicle.
Section 5. The city recorder shall establish appropriate depreciation schedules
and make monthly deposits from solid waste revenues. The recorder shall administer the
fund as directed by the Board of Mayor and Aldermen.
Section 6. Use of solid waste cash reserves. The board may from time to time
borrow from the cash solid waste reserves for cash flow purposes as long as it is repaid
prior to the end of the current fiscal year.
Section 7. This ordinance shall become effective upon final passage, the public
welfare requiring it.
Passed this:
First Reading:______________________
Second Reading:____________________
Mayor:______________________ Attest:______________________
City Recorder