Title
Resolution to Adopt Capital Financing Policies
Memorandum
Attached for your review and approval are the new capital financing policies which were shared during the budget development process. The recommended policies address the important issue of establishing reserves for future replacement of existing assets/infrastructure for the General Fund as well as for the enterprise funds. Failure to set aside funds results in large swings in future expenditures for capital replacement, as well as, potentially increasing future costs.
For the General Fund budget, in FY19, this policy includes funding for streetlights. In future budget years, staff will be reviewing and presenting data for fire stations, City Hall, Justice Center, parks and other areas that need funding set aside.
Adoption of this policy is consistent with the City Administrator’s recommended budget.
Staff recommends adoption of this policy.
Staff
Prepared/Reviewed by: Tom Crawford, CFO/Finance and Administrative Services Area Administrator
Approved by: Howard Lazarus, City Administrator
Body
Whereas, The City desires to operate within prudent financial policies that seek to address long-term liabilities; and
Whereas, The City desires to provide funding for replacement of existing assets;
RESOLVED, That the City Council adopt the attached capital financing policies in order to help address the City’s long-term needs.