Capital Equipment Replacement Fund (CERF) Fund Summary Projections

The Capital Equipment Replacement Fund (CERF) is the fleet replacement program and funding process for City vehicles and equipment. Additions to the existing CERF fleet are initially budgeted for and purchased by the requesting Division. The new equipment or vehicle is then added to the CERF program. Replacement charges are calculated by the original cost of the vehicle, divided by the number of years the vehicle is expected to last with a 3% inflation factor added each year. This fee is charged to the Division for each assigned vehicle and collected quarterly. When a vehicle reaches the scheduled replacement year, the combination of collected CERF funds and the surplus value of the vehicle, fund the purchase of the new replacement. All enhancements or added options not included in the original purchase are not eligible for CERF funding and must be budgeted for by the requesting Division.