HomeMy WebLinkAbout(2013, 05/14) - F-28 - AmendedF-28
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PURPOSE
FACILITIES FINANCIAL PLANNING PROGRAM
To establish the policy for the administration of the City’s Facilities Financial Planning
Program.
DISCUSSION
In addition to the annual Capital Improvement Program (CIP), the City has established
a long term plan for replacement of aging General Fund supported facilities. The
primary focus of the program is the replacement or major renovation of existing
physical infrastructure. The addition of new facilities is also a goal of the program. The
emphasis is on structures and adjacent grounds, rather than transportation,
environmental, or other projects funded either in whole or in part by the General Fund.
OBJECTIVES
A. To insure that a long-term program addressing large, non-recurring projects for
replacement of facilities is addressed as part of the budget process each year.
B. To insure that development fees, proceeds derived from redevelopment or
redeployment of existing land and capital assets owned by the City, and other
non-recurring revenues are dedicated to the replacement of infrastructure
facilities, rather than ongoing operating expenses.
C. To provide a consistent, level funding plan that will minimize the ‘peaks and
valleys’ in General Fund support levels for elements of the program.
D. To insure that projects are properly prioritized and scheduled, taking into
consideration the relative age, condition, and functional viability of current
facilities; pairing of projects where prudent; and cost implications of immediate
projects for the overall long-term program.
E. Budgeting the cost of facilities while those facilities are in use is consistent with
good government management practices. However, creating a legacy of
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excessive fixed costs for debt service is not. Therefore one of the objectives of this
program is to insure that future generations will not be required to carry a
disproportionate fiscal burden for previously completed projects.
SOURCES AND USES OF FUNDS
Funding for the program comes from development fees, proceeds derived from
redevelopment or redeployment of existing land and capital assets owned by the City,
contributions from individuals and organizations within the community, annual budget
allocations from the General Fund, net proceeds of Certificates of Participation or other
financing instruments, and investment earnings on temporarily idle funds.
Program funds are used for actual site acquisition, design, construction, and directly
related costs; as well as debt service expenses.
POLICY AND PROCEDURE
A. Each year, as part of the budget process, staff shall prepare an update of the
Facilities Financial Planning Tool for review, modification, and approval by the
City Council.
B. Unless otherwise specified in individual development agreements, other
governing documents, or as otherwise specifically directed by the City Council,
all development fees received by the City will be dedicated to the Facilities
Financial Planning Reserve fund.
C. Prudent assumptions regarding revenue and expenditure growth, inflation, and
all relevant factors will be included in each year’s update of the Facilities
Financial Planning Tool.
D. General Fund contributions to the Program shall not be less than 3.0% of the total
General Fund Operating Budget. If there is a shortfall in General Fund revenue
due to a decline in economic activity and it is necessary to reduce expenditures,
General Fund contributions to the Facilities Financial Planning Program can be
temporarily modified to maintain contributions under the 3% threshold.
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E. The financing duration for any borrowed funds shall not exceed 30 years or the
projected life of the new facility, whichever is less.
F. The Facilities Financial Planning Tool may be amended by City Council action in
the event of a natural disaster or financial crisis.
Adopted – August 11, 2009
Amended – May 14, 2013