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Capital Replacement Policy 259 260 Purpose 261 The Roseville City Council has set in place a stable funding mechanism for much of the 262 city's infrastructure. The intent of the Council in having Replacement Policies is to provide 263 for easing the burden on both present and future taxpayers and to assure the replacement of 264 the city's infrastructure in a manner that is both fiscally and operationally prudent. 265 266 The primary purpose of this policy is to have specific resources set aside on a periodic basis, 267 to create funding for the major equipment and infrastructure needs of the community, without 268 encountering major tax increases for maintenance and replacement. 269 270 It is not the intent of the City Council to fund major new facilities, which have not had the 271 original funding established either through tax increment, general taxes or other such sources. 272 The replacement funds are expected to be only for replacement purposes. (See the 273 Implementation section below) 274 275 Policy 276 277 The City will establish departmental Vehicle Replacement Funds. The City will appropriate 278 monies to them annually to provide for timely replacement of vehicles. The amount will be 279 maintained at an amount equal to the accumulated depreciation including annual fund interest 280 earnings to provide for vehicle replacement 281 282 The City will establish a General Plant Replacement Fund to provide for non-vehicular 283 equipment replacement; i.e., mowers, tools, etc. Funding should equal the amount of 284 accumulated depreciation recorded on all general governmental equipment including annual 285 fund interest earnings 286 287 The City will establish a Building Replacement Fund, and will appropriate funds to it 288 annually to provide for timely maintenance of all buildings and plants supported by general 289 governmental funding. Maintenance includes major items such as roof repair and HVAC 290 replacement. 291 292 The City shall establish a Street Infrastructure Replacement Fund to provide for the general 293 replacement of streets and related infrastructure throughout the community. The funding 294 should equal the amount of accumulated depreciation recorded on all general governmental 295 streets and related structures including annual fund interest earnings. The annual MSA 296 capital allocation, will be included as part of the source of funds for computing the adequacy 297 of this fund. This Fund has been formally categorized by the Council as a permanent fund, 298 whereby only the interest proceeds are used each year for the stated purpose. The original 299 principal amount remains intact 300 301 The City shall establish a Park Improvement Fund to provide for the general replacement of 302 parks and related infrastructure throughout the community. The funding should equal the 303 amount of accumulated depreciation recorded on all park system assets. 304 305 Page 8 of 12