2016 Approved Budget and CIP - Laserfiche WebLink

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Capital Investment Policy The purpose of the City’s Capital Investment Policy is to ensure future capital improvements, maintenance, and replacements are made when needed, in a manner which is both fiscally and operationally prudent. The goal of this policy is to provide a stable funding mechanism for the City’s infrastructure by setting aside specific resources on a periodic basis. This will ease the burden on present and future taxpayers, without significant fluctuations in annual property tax levies. It is not the intent of the City Council to fund major new facilities, which have not had the original funding established either through tax increment, general taxes, bonding or other such sources. The replacement funds and corresponding fund interest earnings are expected to beonly for replacement purposes. Scope All departments and City funds are included in the 20-Year Capital Improvement Plan (CIP). The CIP identifies the timing and financing of all capital items. Policy The City will develop a 20-year Plan for capital investments and update it at least every 2 years. All capital investments shall be made in accordance with an adopted Capital Improvement Plan. The City will coordinate development of the capital improvement budget with development of the operating budget. Future operational costs associated with new capital improvements will be projected and included in operating budget forecasts. The City will provide ongoing preventative maintenance and upkeep on all its assets at a level adequate to protect the City’s capital investment and to minimize future maintenance and replacement costs. The City should periodically review and follow industry-recommended replacement schedules for all Citycapital assets. The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to Council for approval. The City will determine the least costly financing and acquisition method for all new projects. For future development or redevelopment proposals that require public infrastructure and/or public financing assistance and/or City support services, a fiscal analysis shall be prepared identifying the project sources and uses. The analysis should also demonstrate the costs and benefits of the project. The cost of this analysis shall be borne by the developer. The City will establish departmental Vehicle and Equipment Replacement Funds. The City will appropriate monies to them annually to provide for timely replacement of vehicles and equipment. The amount will be maintained at an amount equal to the proportion of useful life expired multiplied by estimated replacement cost. 94