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April 19, 1977 MEMORANDUM TO: Jack G. Jennings FROM:. Georci McKenna SUBJtCT. Suggested Amendment to Transfer $100,000 to "Maintenance of Equipment" Account of Road and Bridge Budget. As you requested, I have examined expenditures for this account year to date compared with our budget. Of our budget of $135,000 for the year, we have spent $116,000 through March leaving only $19,000 for the final six'months. This year we .are spending at the rate of $19,333 per month on this account compared to $11,693 per month for last year. There is some question as to the budget amount of $135,000. Last year we spent 5147.,600 for Maintenance of Equipment, so our budget is less than spent last year. If it was intended that the budget figure be increased $35,000 over 1975-76 actual, then our budget should have been $176,000, rather than $135,000. I have reviewed all major expenditures for this account . including examination of invoices and identification with county equips-ent numbers, and have discussed these repairs with Gene Hamilton and Curtis Hinton. There is no question that the repairs warp made and the monev was spent. Unfortunately, major r:pairs were more frequent than formerly and more expensive, an experience that is difficult to anticipate. Our heaviest equipment, many involving expensive track rebuilding jobs, ran up the.bills. One expenditure of $9,514.00 for five Ford standby gasoline engines (not used yet) was to approximately double the work mileage of heavy duty.dump trucks. This move will save capital expenditures for new trucks in the future. We believe that the preventative program adopted in late 1976 will serve to pinpoint possible equipment break- downs and Delp control maintenance expense. This contract service with Kelly Tractor Co. provides scheduled factory, test and inspections on our larger equipment. Attached for your information is an inspection report and follow-up correspondence on our Caterpillar heavy duty track mounted loader. This is illustrative of the service provided. I discussed this $100,000 suggested transfer with Bill Jackson and asked him if we could delay this move.until later in the budget year as we have in the past. He answered that we cannot over spend "Maintenance of Equipment" account which we will do in about a month. Bill suggested that we might transfer $30-40,000 from the Road and Bridge Contingency account until we have a better handle on the situation. I am in favor of this suggestion. Overall At the. end of budget fox the of Equipment. Bridge you are M the accounts within your control are in good shape. ?-iarch, at the halfway mark, you are at 45% of total of Road and Bridge accounts including Maintenance For your seven major accounts including Road and at 46/ of budget. APR 20 1977 29