Res 2008-123 - Laserfiche WebLink

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C. Fundin Sources -Where applicable, assessments, impact fees, pro rata charges, or other fees should be used to fund capital projects which have a primary benefit to specific, identifiable property owners. Recognizing that long-term debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives that equal or exceed the average life of the debt issue. The exceptions to this requirement are the traditional costs of issuing the debt, capitalized labor for design and construction of capital projects, and small component parts which are attached to major equipment purchases such as fire trucks. The types of debt issued are listed in Section VIII of this policy. D. Timing and Expenditure Control -The Director of Finance will work with Department Directors during the fiscal year to schedule the timing of capital projects to insure funds availability. All capital projects must be funded and appropriated. The Finance Department must certify the availability of resources before any capital project contract is presented to the City Council for approval. E. Re ortin -Financial reports will be made available to Department Directors to manage their capital projects budgets and to enable the Director of Finance to monitor the overall capital projects budget. VIII. Capital Replacement Reserve Funds Consistent with its philosophy of keeping its capital facilities and infrastructure systems in good repair and to maximize the asset's useful life, the City should set aside sufficient current revenues to finance ongoing maintenance needs and to provide reserves for periodic replacement and renewal. A. The City will establish Capital Replacement Reserve Funds (CRRF) and strive to set aside resources for the future purchases of vehicles, equipment, public buildings and utility system improvements for the General Fund, Water/ Wastewater Utility Fund and Electric Utility Fund. B. The City will strive to set aside resources for the CRRFs from the General Fund, Water/ Wastewater Utility Fund and Electric Utility Fund as follows: 1. General Fund - At least 50% of the previous fiscal year's depreciation expense for vehicles and equipment. 2. Water/ Wastewater Utility Fund - At least 50% of the previous fiscal year's depreciation expense for vehicles and equipment. 3. Electric Utility Fund - At least 50% of the previous fiscal year's depreciation expense for vehicles and equipment. City of San Marcos Financial Policy -Proposed Sept 2008 Page 11