§ 2-587. Integration of capital planning and debt financing activities.

(a) Capital planning and financing system. The city shall develop and maintain a capital planning and financing system for use in preparing a five-year capital improvement plan for consideration and adoption by the city commission as part of the city's annual budget process. Individual departments shall prepare multi-year capital plans for coordination and integration into the preparation of the citywide capital improvement plan.

(b) Funding of the capital improvement program. Whenever possible, the city will first attempt to fund capital projects with grants or developer contributions. When such funds are insufficient, the city will use dedicated revenues such as impact fees or other restricted use revenues. If these are not available, the city will use general revenues, surplus and bond financing. The city is guided by three (3) principles in selecting a funding source for capital improvements - equity, effectiveness and efficiency:

• Equity. When appropriate, the beneficiaries of a project or service will pay for it. For example, if a project is a general function of government that benefits the entire community, the project could be funded from general tax revenues directly or through debt service. If the project benefits specific users the source of funding will be derived through user fees/charges or targeted assessments.

• Effectiveness. In selection of financing sources for projects, the city will select one (1) or more that effectively fund the total cost of the project.

• Efficiency. If grants or current revenues are not available to fund a project, the city will select a financing technique that provides for the lowest total cost consistent with acceptable risk factors and principles of equity and effectiveness.

(c) Maintenance, replacement and renewal. Consistent with the city's philosophy of keeping its capital facilities and infrastructure systems in good repair and to maximize the useful life of its capital assets, the city intends to set aside current revenues to finance ongoing maintenance needs and to provide periodic replacement and renewal.

(Ord. No. 2013-03, § 1, 2-5-13)