RES 90131 - Laserfiche WebLink

The City will attempt to limit the debt ratio (debt guaranteed by the general fund) to 10%. The debt ratio is calculated by the relationship between the debt and the general fund revenue. Whenever possible, the City will investigate the use of special assessment, revenue or other self-supporting bonds to limit the general fund obligation for debt service payments. The City will not use long-term debt for current operations. · The City will maintain good communications with bond rating agencies about our financial condition and will follow a policy of full disclosure on every financial report and bond prospectus. E. CAPITAL IMPROVEMENT POLICIES · The City will construct all capital improvements in accordance with an adopted capital improvement program. · The City will develop a multi-year plan for capital improvements to be updated annually. Future capital expenditures will be projected annually for a 5 year period based on changes in the community population, real estate development or replacment of the infrastructure. · The City will coordinate preparation of the Capital Improvement Budget with preparation of the operating budget. Future operating costs associated with new capital improvement will be projected and included in operating budget forecasts. · The City will project its equipment replacement and maintenance needs and will update the projection annually. From this projection a maintenance and replacement schedule will be developed. The City will identify the estimated costs and potential funding sources for each proposed capital project before it is submitted to Council for approval. The City will attempt to determine the least costly financing method for all new projects. The estimated cost of Capital replacement for enterprise funds such as water and sewer will be updated at least every two years to ensure that rates and charges are covering ~he full cost of operating these programs.