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Attachment A <br />City of Roseville Capital Investment Policy <br />Exhibit A: Fiscal Note <br />Introduction <br />The City recognizes that higher-cost capital asset additions or replacement of existing assets that <br />feature substantial changes from their original size, functionality, or purpose can have a significant <br />impact on the financial sustainability of the City. As a result, the decision to acquire these types of <br />assets should feature added measures to ensure a transparent and public decision-making process <br />is followed. In recognition of these distinct impacts, the following guidelines have been prepared. <br />General Guidelines <br />Each asset addition or asset replacement that features a substantial change as described above in <br />excess of $500,000, should be accompanied by supporting documentation that includes the <br />following: <br /> Description of the purchase/project/initiative <br /> Narrative that describes the nexus to a strategic or other long-term planning process <br /> Purchase cost <br /> Funding source(s) <br />(a) <br /> Where applicable, a multi-year financial pro forma or business plan <br />These supplementary guidelines do not apply towards asset replacements that are included into the <br />Capital Improvement Plan (CIP) and which feature similar functionality or purpose as the original <br />asset. This reflects the fact that these assets are already integrated in the delivery of programs and <br />services. <br />In contrast, higher-cost ($500,000 or greater) capital asset additions or substantially-changed asset <br />replacements have greater potential to disrupt asset replacement strategies and have significant <br />impacts on the operating budget moving forward. Therefore, it is recommended that these asset <br />acquisitions be accompanied by a multi-year financial pro forma or business plan that includes <br />supporting documentation that identifies unmet needs, objectives, and action plans. <br />(a) <br /> The financial pro forma would include a list of estimated operating revenues and expenditures <br />(including staffing changes) as well as the assumptions used to calculate those estimates. <br />An example of the supporting documentation is included below. <br />Page 5 of 8 <br /> <br />