The advantage of True-Up Funds
The one thing we don’t like in this business is surprises – especially on the bill. That’s why we build a True-Up Funds provision into our partnership agreements. This provision reflects our belief that maintenance management should minimize repair costs so they do not become capital expenditures for your city. We start by estimating maintenance costs for the year and we draw down against it throughout the year.
Any budgeted funds for maintenance that remain unspent at the end of the contract year are refunded to you. If maintenance costs exceed the estimated amount, PeopleService provides documentation for all expenses over this limit, and the City is responsible for those. Not all partners do this, billing real-time as they go and sometimes it’s hard to come up with those fund real-time. Feedback from our partners expresses that this way of doing business – knowing what to expect – is appreciated. If you hate surprises and want a partner that is transparent and in it for you, let’s talk today.