RESOLUTION NO. 2005-39

(TO ESTABLISH AN AVERAGE EQUIPMENT REPLACEMENT RESERVE AMOUNT FOR THE EQUIPMENT RENTAL and REVOLVING FUND)

WHEREAS, On September 6, 1977, Resolution No. 1977-12 established the Equipment Rental and Revolving Fund for maintaining all county owned equipment; and

WHEREAS, the Board of County Commissioners determined the current ER&R Equipment Replacement reserve amount exceeded the county’s needs and that it was in the best interest of the county to reduce the reserve amount to $1,500,000 with an annual inflation factor of three percent while maintaining an operating capital at $500,000: and

WHEREAS, it was determined the best way to reduce the ER&R reserve amount was to implement a gradual reduction in for a three year period; and

WHEREAS, the Board has determined the amount of reduction per year should be $200,000, beginning with budget year 2006.

BE IT RESOLVED, that effective January 1, 2006 the ER&R Fund will be reduced by $200,000 per year for three years to maintain an average fund balance of $2,000,000 ($1,500,000 Equipment Replacement reserve and $500,000 operating capital) with an annual inflation rate of three percent.

PASSED IN REGULAR SESSION this____day of __________ 2005.

Attest:	Board of Commissioners Skamania County, Washington
	Commissioner
Clerk of the Board	Commissioner
	Commissioner

APPROVED AS TO FORM ONLY:

Prosecuting Attorney