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Attachment A <br />Definitions <br />Capital assets — Assets which cost $5,000 or more and have a useful life of two or more <br />years. <br />Capital Improvement Plan — A comprehensive 20 year outloolc itemizing all capital assets <br />and their replacement funding requirements. The plan will take into account useful asset lives <br />and salvage values. <br />Replacement Cost— In today's dollars, the cost to replace the asset. If it is expected the retired <br />asset will have a salvage value, the estimated salvage value should be deducted from the <br />expected replacement cost. <br />Asset Life — The number of years which is the asset is in use, also known as the useful life of <br />a capital asset. <br />Bonding — The amount of debt incurred to obtain capital assets. <br />Capital Asset Maintenance — Expenditures which protect the City's investment in capital <br />assets and provide for ongoing upkeep. <br />Equipment — A tangible capital asset which does not qualify as a vehicle, building, street, or <br />park asset. Examples are mowers, tools, etc. <br />MSA Capital Allocation — Municipal State Aid is money the City receives from the State to <br />help pay for maintenance of MSA-designated streets. MSA streets are collector or arterial <br />streets that interconnect to other cities or major thoroughfares. <br />Enterprise Fund — A separate accounting and financial reporting mechanism for municipal <br />services for which is 100% fee supported. Examples are Water, Sewer, and Golf Course. <br />General Governmental Fund — A separate accounting and financial reporting mechanism for <br />spending in which a property tax is generally levied. Examples are police, fire, streets, parks <br />and recreation. <br />Enterprise Fund System Asset — Assets which support enterprise services such as water, <br />sewer, and golf course. <br />Park System Asset — All assets within city parks excluding buildings. Examples would be <br />trails, equipment, and courts. <br />Implementation <br />The City shall use replacement funds to assist in the replacement of equipment, vehicles, and <br />capital building maintenance. New equipment ar buildings are to be funded from new dollars, <br />unless they are designated to replace currently owned assets. Funds may be used up to the <br />