Highway Funds

Question: 

If a town auctions off trucks/equipment etc., bought with highway funds, should the income from the auctioned equipment go back to the highway funds, or can the town keep and put in the general fund? 

Answer:

Summary

Funds obtained selling equipment owned by the highway department should stay with the highway department. The funds raised can be used to increase the amount of funds available.

From the Red Book (section 9-9, [page 240])

Estimates of amounts to be received from the sale of used machinery, tools, implements and equipment should be included in Item 3 (Highway Law, §142 (5)).

From Highway Law, §142

5. The town superintendent may also, with the approval of the town board, sell any such machinery, tools, implements and equipment, which are no longer needed by the town, or which are worn out or obsolete, or may exchange the same or surrender it to the vendor as part payment for new machinery, tools, implements and equipment. If sold, the proceeds shall, under the direction of the town board, be applicable to the purchase of the machinery, tools, implements and equipment mentioned in subdivision three of section two hundred seventy-one of this chapter.