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Q1 6 Replacement Policies The Rosmillc City Council tm set in place a stable funding mechanism for much of the cifty's infmMudm- TU i intent of the Council in having Replacement Policies,is to provide for easing the burden on both present and fat= Umpyers and to assure the replacement of the cityps inftas"cture as it is fbund nwes&my and in a rnanm which is both fiscally and operationally prudent IU primary purpose of this policy is to have specific resources set aside on a periodic basis,to create funding for the Mior equipment and Infiastructure needs of the Community,.without encountering major tax increases for maintenance and replacement. It is not the W=t of the City Council to fund major new facilities,which have not had the original funding established either*rough tax increment general taxes or other such sources. The repimement funds are expected to be only for replacement purposes. (See the Implementation section below) POLICY The City will establish an Equipment Replacement Fund,and will appropriate funds to it annually to provide for timely replacement of equipment Thc amount will be aft"ned at an amount equal to the accumulated depreciation including annual fund interest earnings to provide for equipment replacement. The City will establish a Building Replacement Fund,and will 4-iate funds to it annually to provide for VFW" timely maintenance of all buil.&W and plants supported by general govermnenW funding. The fimcLing should equal the amount of accumulated depreciation recorded on all general govenuitental buildings including annual fimd interest earnings. • The City will establish a Plant Replacement Fund to provide for non-vehicular equipment Mlacemeffl;i.e., he amount of accumulated deprecon recorded on all general mowers,tools,etc. Funding should equal t governmental equipment including annual fad interest ea • The City shall establish a Rocreational Facilities replacement Fund for the maintenance and replacement of specialized recreational facilities such as the skating center and new park shelters which have been constructed from the Recreational Facilities Bond Fund. Funding shall be the anmol appropriation of the 5%set out in the fund be limited to 60%of the tax,acre policy as the ftdhwoucturc replacement fund. The use of this f annual interest until the year 2004,,at which time the fund balance will permit the use to become on the basis of the other replacement funds,D.e.finding should equal the amount of accumulated depreciation recorded on the newly added recrntional facilities including annual fund interest The City establish a Stmet Infras"dM Replacement Fund to pvvide for%e general replacement Of infimstnIcture amughout the comnumity. 1"he fundinar should equal the amount of greets and related me accumulated depreciation recorded on all general governmental streets and related sftuMuw including annual interest eamings. The awmal MSA capital allocatim will be included as part of the source of funds for A3M i computing the adequacy of this fund. From time to time the City Council shall establish additional replacement funds as the need and funding ability becomes Table. The City shall use replacement funds to assist in the repl=ment of equipment,vehicles,and building maintenance. New equipment or buildings are to be funded from new dollars,unless they are designated to replace cw=dy from&1=1'ation of depreciated aswts. Funds from dw replacement funds may be used up to the amount available f the replaced asset. Any additional funding shall be from new sources.