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Capital Investment Policy <br />The purpose of the City’s Capital Investment Policy is to ensure future capital improvements, <br />maintenance, and replacements are made when needed, in a manner which is both fiscally and <br />operationally prudent. The goal of this policy is to provide a stable funding mechanism for the <br />City’s infrastructure by setting aside specific resources on a periodic basis. This will ease the <br />burden on present and future taxpayers, without significant fluctuations in annual property tax <br />levies. <br />It is not the intent of the City Council to fund major new facilities, which have not had the original <br />funding established either through tax increment, general taxes, bonding or other such sources. <br />The replacement funds and corresponding fund interest earnings are expected to be only for <br />replacement purposes. <br />Scope <br />All departments and City funds are included in the 20-Year Capital Improvement Plan (CIP). <br />The CIP identifies the timing and financing of all capital items. <br />Policy <br />The City will develop a 20-year Plan for capital investments and update it at least every 2 <br />years. <br />All capital investments shall be made in accordance with an adopted Capital Improvement <br />Plan. <br />The City will coordinate development of the capital improvement budget with development <br />of the operating budget. Future operational costs associated with new capital improvements <br />will be projected and included in operating budget forecasts. <br />The City will provide ongoing preventative maintenance and upkeep on all its assets at a <br />level adequate to protect the City’s capital investment and to minimize future maintenance <br />and replacement costs. The City should periodically review and follow industry- <br />recommended replacement schedules for all City capital assets. <br />The City will identify the estimated costs and potential funding sources for each capital <br />project proposal before it is submitted to Council for approval. <br />The City will determine the least costly financing and acquisition method for all new <br />projects. <br />Item #4: Attachment A