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INTERNAL SERVICE FUNDS

Inter-Departmental Service Fund
The Inter–Department Service Fund was established to finance and account for services, materials, and supplies furnished
to the various departments for the City, and on a limited basis, to other local governmental agencies. These services are
provided on a cost reimbursement basis.

The activities provided by this fund is for Fleet Operations and Materials Management. The level of activity is
expected to increase by $305K due to fleet sales with revenues budgeted to generate $4.5M. Expenses are
budgeted at $4.3M and include the addition of a part time Apprentice Auto Mechanic position. The projected
ending working capital will be $731K.
General Depreciation Fund
This section also includes the working capital summary for General Depreciation Fund, which was established for the sole
purpose of replacing rolling stock of the General Fund. Funding has been provided by a rental charge to the appropriate
department in the General Fund.

The rental paid by various departments of the General Fund for rolling stock is the budgeted acquisition cost plus
various inflation factors to be recaptured over the estimated useful life. Rental income provided in this year’s
budget amounts to $3M and an additional $134K for vehicle shortage reimbursements. Capital expenditures
planned this year amounts to $2.6M. $45K will be transferred to the Sanitation Depreciation fund to assist in
funding a replacement vehicle that was transferred between the two funds. Working Capital at year-end will be
$12.1M. A detailed listing of the acquisitions is listed on pages 297.

Health Insurance Fund
The Employee Health Insurance Fund was established to account for all expenses related to health insurance premiums and
claims for city employees.

This fund accounts for the cost of self-insured claims, health insurance premiums on excess coverage and related
administrative costs. Revenues primarily derived from other City funds to which these coverages are attributable
covers 95% of the employee cost and 68% of the dependent cost, with the differences of 5% and 32% being
contributed by the employees respectively effective this fiscal year amount to $12.7M with an additional $2.6M
being transferred in from the other Funds. Expenses have been budgeted at $15.5M, leaving working capital with
about $7K by year-end.

Retiree Health Insurance Fund
The Retiree Employee Health Insurance Fund was established to account for all expenses related to health insurance
premiums and claims for retired city employees.

Revenues are expected to come in at $1.45M, of which $844K will come from the annual required cost from other
funds and the balance primarily from retiree premiums and some interest revenue. Claims expense and
administrative expenses have been budgeted at $1.3M. Working capital is expected to amount to $1.1M.

Workmen’s Compensation Fund
The Workmen’s Compensation Fund was established to account for all expenses related to workmen’s compensation claims
and general liability insurance. Primary funding sources are transfers in from General Fund and Enterprise Funds.
This fund accounts for the cost of self-insured claims, insurance premiums on excess coverage and related
administrative costs related to workers’ compensation. Revenues primarily derived from other City funds to which
these coverages are attributable will drop by $279K. Expenses have been budgeted at $3.3M. Working capital is
expected to amount to $4.3M at year-end.

Executive Summary Page xxiii