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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 City's <br /> infrastructure by setting aside specific resources on a periodic basis. This will ease the burden on present <br /> and future taxpayers, without significant fluctuations in annual property tax levies. <br /> It is not the intent of the City Council to fund major new facilities,which have not had the original funding <br /> established either through tax increment, general taxes, bonding or other such sources. The replacement <br /> funds and corresponding fund interest earnings are expected to be only for replacement purposes. <br /> Scope <br /> All departments and City funds are included in the 20-Year Capital Improvement Plan(CIP). The CIP <br /> identifies the timing and financing of all capital items. <br /> Policy <br /> 0 The City will develop a 20-year Plan for capital investments and update it at least every 2 years. <br /> 0 All capital investments shall be made in accordance with an adopted Capital Improvement Plan. <br /> D The City will coordinate development of the capital improvement budget with development of <br /> the operating budget. Future operational costs associated with new capital improvements will be <br /> projected and included in operating budget forecasts. <br /> 0 The City will provide ongoing preventative maintenance and upkeep on all its assets at a level <br /> adequate to protect the City's capital investment and to minimize future maintenance and <br /> replacement costs. The City should periodically review and follow industry-recommended <br /> replacement schedules for all City capital assets. <br /> 0 The City will identify the estimated costs and potential funding sources for each capital project <br /> proposal before it is submitted to Council for approval. <br /> 0 The City will determine the least costly financing and acquisition method for all new projects. <br /> 0 For future development or redevelopment proposals that require public infrastructure and/or <br /> public financing assistance and/or City support services, a fiscal analysis shall be prepared <br /> identifying the project sources and uses. The analysis should also demonstrate the costs and <br /> benefits of the project. The cost of this analysis shall be borne by the developer. <br /> 0 The City will establish departmental Vehicle and Equipment Replacement Funds. The City will <br /> appropriate monies to them annually to provide for timely replacement of vehicles and equipment. <br /> The amount will be maintained at an amount equal to the proportion of useful life expired <br /> multiplied by estimated replacement cost. <br /> Page 7 of 15 <br />