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Regular City Council Meeting Monday, September 24,2012 Page 17 At the request of Mayor Roe, and recognizing Councilmember McGehee's pre- vious question regarding General Obligation Capital Improvement Bonds, and a potential view that maintenance versus capital improvement was blurred, Ms. Terri Eaton of Springsted provided a response. Ms. Eaton responded that General Obligation bonds were intended for major ef- forts needed to repair existing assets, with that value added to those assets con- sidered capital. In response to Mayor Roe, Ms. Eaton responded that parks are considered assets and any major refurbishment to bring them back to their value was considered a capital expense, and not limited to new capital. In response to Councilmember Pust, Ms. Eaton advised that it was critical that the bond funds be used for that purpose versus general operations and mainte- nance; and further advised that their office and the City's bond attorneys had re- viewed everything included on the list for inclusion and had approved them for this type of bond issue. At the request of Councilmember Pust, Ms. Eaton confirmed that this bond is- sue was required to be used for that purpose (e.g. capital improvements) and that purpose only, and not for general operational maintenance work. At the request of Councilmember Pust, Ms. Eaton reiterated that those capital .improvements were defined for use on existing assets and was different than general maintenance and operations. Mayor Roe noted that the City had a policy that restricted borrowing for general operating and maintenance, with Finance Director Miller responding that he was unaware of any restrictions beyond that policy other than those prescribed by State law. Councilmember Pust referenced meeting packet materials provided and color coded, and thanked staff for including that update. In the four-year plan provid- ed by staff, Councilmember Pust noted that it had been updated as of 08/29/2012 with a total amount of$4.1 million for year two (2); with $1.6 mil- lion of that indicated for acquisition or new purchases at two (2) different desig- nated sites, and representing approximately 40% of that $4.1 million. Coun- cilmember Pust questioned if that was still part of the plan. Mr. Miller deferred a response to Parks and Recreation Director Lonnie Brokke, who clarified that the information contained in the meeting materials remained a work in progress, and included moving 2012 projects due to missing the con- struction season.