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255 256 Capital Replacement Policy 257 258 Purpose 259 The Roseville City Council has set in place a stable funding mechanism for much of the city's 260 infrastructure. The intent of the Council in having Replacement Policies is to provide for easing the burden 261 on both present and future taxpayers and to assure the replacement of the city's infrastructure in a manner 262 that is both fiscally and operationally prudent. 263 264 The primary purpose of this policy is to have specific resources set aside on a periodic basis, to create 265 funding for the major equipment and infrastructure needs of the community, without encountering major 266 tax increases for maintenance and replacement. 267 268 It is not the intent of the City Council to fund major new facilities, which have not had the original funding 269 established either through tax increment, general taxes or other such sources. The replacement funds are 27o expected to be only for replacement purposes. (See the Implementation section below) 271 272 Policy 273 274 ❑ The City will establish a General Vehicle Replacement Fund and a Fire Vehicle Replacement 275 Fund. The City will appropriate funds to them annually to provide for timely replacement of 276 vehicles. The amount will be maintained at an amount equal to the accumulated depreciation 277 including annual fund interest earnings tO provide for vehicle replacement 278 279 ❑ The City will establish a General Plant Replacement Fund to provide for non - vehicular equipment 280 replacement; i.e., mowers, tools, etc. Funding should equal the amount of accumulated 281 depreciation recorded on all general governmental equipment including annual fund interest 282 earnings 283 284 ❑ The City will establish a Building Replacement Fund, and will appropriate funds to it annually to 285 provide for timely maintenance of all buildings and plants supported by general governmental 286 funding. Maintenance includes major items such as roof repair and HVAC replacement. 287 288 ❑ The City shall establish a Street Infrastructure Replacement Fund to provide for the general 289 replacement of streets and related infrastructure throughout the community. The funding should 290 equal the amount of accumulated depreciation recorded on all general governmental streets and 291 related structures including annual fund interest earnings. The annual MSA capital allocation, 292 will be included as part of the source of funds for computing the adequacy of this fund. This Fund 293 has been formally categorized by the Council as a permanent fund, whereby only the interest 294 proceeds are used each year for the stated purpose. The original principal amount remains intact 295 296 ❑ The City shall establish a Park Improvement Fund to provide for the general replacement of parks 297 and related infrastructure throughout the community. The funding should equal the amount of 298 accumulated depreciation recorded on all park system assets. 299 Page 9 of 13