HomeMy WebLinkAbout(2009, 08/11) - F-28 - AdoptedF-28
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FACILITIES REPLACEMENT PROGRAM
PURPOSE
To establish the policy for the administration of the City’s Facilities Replacement
Program.
DISCUSSION
In addition to the annual Capital Improvement Projects (CIP) program, 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 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
considering 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
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.
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SOURCES AND USES OF FUNDS
Funding for the program comes from development fees, 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 Replacement Program 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
Replacement Program.
C. Prudent assumptions regarding revenue and expenditure growth, inflation, and
all relevant factors will be included in each year’s update of the Facilities
Replacement Program.
D. General Fund contributions to the Program should ideally be in the range of 3.0%
to 4.5% of the General Fund Operating Budget each year, but in no case shall said
contributions exceed 5.0% of the total General Fund Operating Budget. This
provision does not preclude periodic year-end-close contributions of
unexpended appropriations originally budgeted for other purposes; or
contributions of unexpected one-time revenues not specified for another
purpose. Similarly, it is not intended to constrain additional contributions
required to keep the program solvent in exceptional cases, such as an unexpected
shortfall of General Fund revenue or increase in cost of the program. If it is
necessary for General Fund contributions to exceed 5.0% of the total General
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Fund Operating Budget to maintain the Facilities Replacement Program, the
Program shall be modified to maintain contributions under the 5.0% threshold.
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 Replacement Program may be amended by City Council action in
the event of a natural disaster or financial crisis.
Adopted – August 11, 2009