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City of Roseville Capital Investment Policy Exhibit A: Fiscal Note Introduction The City recognizes that higher-cost capital asset additions or replacement of existing assets that feature substantial changes from their original size, functionality,or purpose can have a significant impact on the financial sustainability of the City. As a result, the decision to acquire these types of assets should feature added measures to ensure a transparent and public decision-making process is followed. In recognition of these distinct impacts, the following guidelines have been prepared. General Guidelines Each asset addition or asset replacement that features a substantial change as described above in excess of $500,000, should be accompanied by supporting documentation that includes the following: • Description of the purchase/project/initiative • Narrative that describes the nexus to a strategic or other long-term planning process • Purchase cost • Funding source(s) • Where applicable, a multi-year financial pro forma(a) or business plan These supplementary guidelines do not apply towards asset replacements that are included into the Capital Improvement Plan(CIP) and which feature similar functionality or purpose as the original asset. This reflects the fact that these assets are already integrated in the delivery of programs and services. In contrast,higher-cost($500,000 or greater) capital asset additions or substantially-changed asset replacements have greater potential to disrupt asset replacement strategies and have significant impacts on the operating budget moving forward. Therefore, it is recommended that these asset acquisitions be accompanied by a multi-year financial pro forma or business plan that includes supporting documentation that identifies unmet needs, objectives, and action plans. (a) The financial pro forma would include a list of estimated operating revenues and expenditures (including staffing changes) as well as the assumptions used to calculate those estimates. An example of the supporting documentation is included below.