Laserfiche WebLink
Capital Replacement Policy <br /> Purpose <br /> The Roseville City Council has set in place a stable funding mechanism for much of the city's infrastructure. <br /> The intent of the Council in having Replacement Policies is to provide for easing the burden on both <br /> present and future taxpayers and to assure the replacement of the city's infrastructure in a manner that is <br /> both fiscally and operationally prudent. <br /> The primary purpose of this policy is to have specific resources set aside on a periodic basis, to create <br /> funding for the major equipment and infrastructure needs of the community,without encountering major tax <br /> increases for maintenance and replacement. <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 or other such sources. The replacement funds are <br /> expected to be only for replacement purposes. (See the Implementation section below) <br /> Policy <br /> ❑ The City will establish a General Vehicle Replacement Fund and a Fire Vehicle Replacement <br /> Fund. The City will appropriate funds to them annually to provide for timely replacement of <br /> vehicles. The amount will be maintained at an amount equal to the accumulated depreciation <br /> including annual fund interest earnings to provide for vehicle replacement <br /> ❑ The City will establish a General Plant Replacement Fund to provide for non-vehicular equipment <br /> replacement; i.e., mowers, tools, etc. Funding should equal the amount of accumulated <br /> depreciation recorded on all general governmental equipment including annual fund interest <br /> earnings <br /> ❑ The City will establish a Building Replacement Fund,and will appropriate funds to it annually to <br /> provide for timely maintenance of all buildings and plants supported by general governmental <br /> funding. Maintenance includes major items such as roof repair and HVAC replacement. <br /> ❑ The City shall establish a Street Infrastructure Replacement Fund to provide for the general <br /> replacement of streets and related infrastructure throughout the community. The funding should <br /> equal the amount of accumulated depreciation recorded on all general governmental streets and <br /> related structures including annual fund interest earnings. The annual MSA capital allocation,will <br /> be included as part of the source of funds for computing the adequacy of this fund. This Fund has <br /> been formally categorized by the Council as a permanent fund,whereby only the interest proceeds <br /> are used each year for the stated purpose. The original principal amount remains intact <br /> ❑ The City shall establish a Park Improvement Fund to provide for the general replacement of parks <br /> and related infrastructure throughout the community. The funding should equal the amount of <br /> accumulated depreciation recorded on all park system assets. <br /> ❑ Within each enterprise fund, the City shall establish a funding mechanism to provide for the <br /> general replacement of related infrastructure throughout the community. The funding should equal <br /> the amount of accumulated depreciation recorded on all enterprise fund system assets. <br /> Page 6 of 10 <br />