HomeMy WebLinkAboutAgenda Packet City Council - 03/28/2019 (W)City Council Workshop Session
City of Corpus Christi
Meeting Agenda - Final
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
City Council Chambers9:00 AMThursday, March 28, 2019
FY 2019 Budget Workshop
Public Notice - - ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL
PURPOSES ONLY. COUNCIL MAY GIVE DIRECTION TO THE CITY MANAGER, BUT NO
OTHER ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED.
THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE
PROHIBITED IN THE COUNCIL CHAMBERS DURING MEETINGS OF THE CITY
COUNCIL.
A.Mayor Joe McComb to call the meeting to order.
B.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers.
C.BRIEFINGS TO CITY COUNCIL:
The following items are for Council's informational purposes only. Council may give
direction to the City Manager, but no other action will be taken taken and no public
comment will be solicited.
1.19-0441 Review and discussion on Financial Budgetary Policies
Agenda Memo-03.28.19 Budget Workshop- Fin Policy
Fiscal Policies Resolution Fy19
Attachments:
2.19-0446 Review and discussion on Capital Improvement Plan Financial
Policies and Budget
Agenda Memo-03.28.19 Budget Workshop- CIP
CIP - Presentation 03.28.19 version2
Attachments:
D.ADJOURNMENT
*City Council will not be taking action in this workshop session, except for the purpose of
directing the City Manager in accordance with the Charter. To the extent the classification
of this meeting as a workshop is construed to limit this authority, then this meeting is
determined to be a special meeting.
Page 1 City of Corpus Christi Printed on 3/22/2019
AGENDA MEMORANDUM
for the City Council Meeting of March 28, 2019
DATE:March 18, 2019
TO:Keith Selman, Interim City Manager
THRU:Constance Sanchez, Interim Assistant City Manager
FROM:Eddie Houlihan,Director Office of Management and Budget
EddieHo@cctexas.com
361-826-3792
STAFF PRESENTER(S):
Name Title/Position Department/Division
1.Eddie Houlihan Director Office of Management and Budget
BACKGROUND:
Staff will present an overview of the current Financial Budgetary Policies. Staff will look to receive
feedback from Council regarding any recommendations /amendments to the policies.
LIST OF SUPPORTING DOCUMENTS:
Financial Policies Resolution
FY 2019 BUDGET WORKSHOP
Review and discussion on Financial Budgetary Policies
RESOLUTION
AMENDING FINANCIAL BUDGETARY POLICIES ADOPTED BY
RESOLUTION 0331240 AND PROVIDING FINANCIAL POLICY
DIRECTION ON PREPARATION OF THE ANNUAL BUDGETS.
·WHEREAS, the City of Corpus Christi has a commitment to citizens as expressed in its
Mission Statement: "Provide exceptional service to enhance the quality of life"; and
WHEREAS, financial resources are budgeted to fulfill this commitment; and
WHEREAS, it has been the City's goal to rebuild the General Fund balance to
acceptable levels, a goal which was expressly stated in past policies with targets for
accomplishing that goal; and
WHEREAS, the City Council adopted a Financial Policy in January 1997 by Resolution
No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965,
modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a new
Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy
in May 1999 by Resolution . No. 023657; reaffirmed the Financial Policy in May 2000 by
Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No.
024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863;
reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the
Financial Policy in April 2004 by Resolution No. 025737; reaffirmed the Financial Policy
in May 2005 by Resolution 026265; reaffirmed the Financial Policy in January 2006 by
Resolution 026605; amended the Financial Policy in April 2008 by Resolution 02'683;
amended the Financial Policy in May 2009 by Resolution 028176; amended the policy
in May 2010 by Resolution 028609; amended the policy in July 2011 by Resolution
029128; amended the policy in May 2012 by Resolution 029521; amended the policy in
May 2013 by Resolution 029826; amended the policy in June 2013 by Resolution
029848; amended the policy in August 2014 by Resolution 030265; amended the policy
in March 2016 by Resolution 030790; amended the policy in July 2017 by Resolution
031189; and amended the policy in August 2017 by Resolution 031240.
WHEREAS, as a result of those policies, the City achieved its previous goal for the
General Fund balance and desires now to articulate a new strategy to maintain a
revised General fund balance and to utilize any surplus balance to provide for enhanced
financial stability in future years, and also desires to establish similar goals for fund
balances of the Internal Service Funds, Enterprise Funds, the Combined Utility Reserve
Fund, and Debt Service Reserve Funds; and ·
WHEREAS, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City's bond rating; and
WHEREAS, it has been the City's practice to reaffirm its financial policy or to adopt new
or modified policy annually in conjunction with preparation of the budget.
NOW, THEREFORE, BE rr RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTl, TEXAS: ·
(1 3154 7
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The Financial Budgetary Policies adopted by Resolution 031240 are amended to read
as follows:
Section 1. Development I Effective Date of Financial Budgetary Policy. This
Financial Budgetary Policy reaffirms and amends the financial policies adopted each
year by the City Council since 1997. The City Manager is directed to prepare each
annual proposed budget in accordance with this policy. The City Council is prepared to
make expenditure reductions that may be necessary to comply with this policy. This
Financial Budgetary policy remains in effect and applies to future annual budget
preparation processes until amended by City Council resolution.
Section 2. Current Revenues Equal I Exceed Current Expenditures. Current
General Fund operating revenues will equal or exceed current budgeted expenditures.
Section 3. General Fund Balance I Working Capital. To ensure that current and
future services or operations are not severely impacted by any economic slowdowns,
emergencies, natural disasters or other unforeseen circumstances, adequate financial
resources will be set aside in the General Fund unassigned fund balance. In the
Government Finance Officers Association's (GFOA) "Best Practice for Determining the
Appropriate level of Unrestricted Fund Balance in the General Fund (2015)", GFOA
recommends, at a minimum, that general-purpose government, regardless of size,
maintain an unrestricted budgetary fund balance in their general fund of no Jess than
two months of regular general fund operating revenues or regular general fund operating
expenditures. Accordingly; it is the goal of the City Council to build and maintain a
reserve in the General Fund unassigned fund balance which totals at least two months
(or approximately 17%) of regular general fund operating expenditures up to 25% of
total annual General Fund appropriations, exclusive of any one-time appropriations. At
the end of the fiscal year, upon completion of the Comprehensive Annual Financial
Report, the amount calculated to be at least two months of regular general fund
operating expenditures up to 25% of total annual General Fund appropriations will be
Fe:a\e::J for Major Contingencies, and set up in a separate account. The City Manager
shall report on the status of compliance with this policy at least annually as part of the
budget process. Uncommitted fund balance in excess of the policy requirement may
be recommended for expenditure by the City Manager. Such expenditures shall be
subject to the normal appropriations and expenditure approval process applicable to all
other funds . Finally, it is noted that extraordinary situations may arise in which the timing
of external actions out of the City's control may require the use of the unassigned fund
balance. The City Manager shall note these situations to the City Council as soon as
the information is known .
Amounts that can be used for specific purposes pursuant to constraints imposed by
formal action of the City Council will be reported as committed fund balance. Those
committed amounts cannot be used for any other purpose unless the City Council
removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts. Existing resources in the fund t h a t have been
specifically committed for use in satisfying contractual obligations will be reported as
assigned fund balance .
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Section 4. Other Committed Fund Balances.
4 .1 hternal Service Funds. To ensure that current and future services or operations
are not severely impacted by any economic slowdowns, emergencies, natural
disasters or other unforeseen circumstances, it is the goal of the City Council to
build and maintain a reserve in each Internal Service Fund listed below, of three
percent (3%) and a maximum of an additional two percent (2% ). for a total of five
percent (5%) of the annual Internal Service Fund appropriations, exclusive of any
one-time appropriations. This subsection only applies to the hformation
Technologies Internal Service Fund; Stores Internal Service Fund; Engineering
Services Internal Service Fund; Fleet Maintenance Internal Service Fund; and
Facilities Maintenance Internal Services Fund.
4.2 Group Healh Plans. l is a goal of the City to maintain a fund balance in the group
health plans to ( 1 ) pay any associated administrative costs and claims run-out based
upon the most recent actuarial study in the event the plan ceases or a change in
the third-party administrator is made; and to (2) hold a reserve for catastrophic claims
equaling 10% of projected medical and prescription claims .
4.3 General Liability Fund. It is a goal of the City to maintain a fund balance in
the General Liability Fund (1) to fund long-term liabilities, incurred but not reported
expenses (IBNR), and a risk margin for the adverse development of claims as
determined by the actuarial recommendation and reflected in the Comprehensive
Annual Financial Report ; (2) to provide additional protection against significant
unexpected claims experience in the fiscal year as a catastrophic reserve equaling
25% of the average incurred costs of claims experience over the prior five-year
period; and
(3) to protect against significant cost increases in the fiscal year for purchased
insurance coverage premiums equaling 25% of the cost for purchased insurance
over the prior year.
4.4 Worker's Compensation Fund . It is a goal of the City to maintain a fund balance
in the Worker's Compensation Fund (1) to fund long-term liabilities, incurred but
not reported expenses (IBNR), and a risk margin for the adverse development of
claims as determined by the actuarial recommendation and reflected in the
Comprehensive Annual Financial Report; and (2) to protect against significant
unexpected claims experience in the fiscal year as a catastrophic reserve equaling
25% of the average of incurred costs of claims experience over the prior five-year
period.
4 .5 Enterprise Funds . To ensure that current and future services or operations are not
severely impacted by any economic slowdowns, emergencies, natural disasters or other
unforeseen circumstances, it is the goal of the City Council to build and maintain an
unreserved fund balance in each of the Enterprise Funds of a maximum oftwenty-five
percent (25%) of the annual Enterprise Fund appropriations, exclusive of debt service
and any one-time appropriations, and anything over that amount shall be designated
for specific purpose(s). This subsection only applies to Water, Wastewater, Gas,
Stormwater, Airport, and Marina fund balances.
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4.6 Debt Service Reserve Fund. The City will strive to maintain a debt service fund balance
for bonds, certificates of obligation, tax notes, and other debt instruments of at least two
percent (2%) of the annual debt service appropriation(s) for the fiscal year; provided,
however, this requirement shall comply with the provision of Treasury Regulation 1.148-2(f)
which limits the amount of reserve funds that may secure the payment of debt service on
bonds .
Section 5. Liabilities for Other Post-Employment Benefits, Accrued Compensated
Absences and Net Pension Liability. For financial reporting purposes, the City will
record liabilities for Other Post-Employment Benefits, Accrued Compensated Absences
and Net Pension Liability according to guidance of the Governmental Accounting
Standards Board. These liabilities will be funded on a pay-as-you-go basis, and thus
will not be included in the minimum fund balances of the affected funds.
Section 6. Property Tax Rate for Operations and Maintenance. Each proposed
annual budget shall be prepared assuming that the City will be adopting a tax rate
necessary to be in compliance with Section 2 above. Full consideration will be given to
achieving the "effective tax rate" for maintenance and operations when assessed
property values decrease, and full consideration will be given to maintaining the current
tax rate when assessed properties values increase, as long as the tax rate does not
exceed the "rollback" rate (which is the rate that allows the City to raise the same
amount of maintenance and operation revenue raised in the prior year with an 8%
increase.)
Section 7. Funding Level from General Fund for Street Maintenance. City Council
approved Resolution #029634 on September 18, 2012 to declare its intent to establish a
street user fee for implementation in Fiscal Year 2013-2014. Section 4 of this resolution
expressed an intent to preserve the funding level of the Street Department at the
percentage of the Street Fund's budget in Fiscal Year 2012-2013 relative to the General
Fund . Excluding a decrease in General Fund revenues, the percentage of the Street
Fund's budget relative to the General Fund will neither go below that of Fiscal Year
2012-2013 nor go below the dollar equivalent if General Fund revenues increase. That
funding level equates to 6.00% of General Fund revenue less grants from the annual
adopted operating budget or $10,818,730, whichever is greater. Beginning in Fiscal Year
2015-2016, the funding level will be 6% of General Fund revenue less grants and industrial
district revenue or $10 ,818,730 , whichever is greater. Additionally, beginning in Fiscal Year
2015-2016, 5% of industrial district revenue will be transferred to the Street Maintenance
Fund. Beginning in Fiscal Year 2018-2019, the funding level will be 6% of General Fund
revenue less grants, industrial district revenue and any property taxes passed through the
General Fund and transferred to the Residential Street Reconstruction Fund or $10,818,730,
whichever is greater.
Section 8. Funding Level from General Fund for Residential Street Reconstruction
Fund. In order to develop a long-term funding mechanism for capital improvements
related to residential/local streets, implement the following:
1. For 3 years beginning in Fiscal Year 2014-2015, appropriate $1,000,000
each year from the uncommitted fund balance of the General Fund and
transfer to the Residential Street Reconstruction Fund.
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2. Beginning in Fiscal Year 2015-2016, appropriate and transfer 5% of
industrial district revenue to the Residential Street Reconstruction Fund.
3. In Fiscal Year 2020-2021, transfer 1/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential Street
Reconstruction Fund.
4 . In Fiscal Year 2021-2022, transfer 2/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential Street
Reconstruction Fund.
5. In Fiscal Year 2022-2023 and thereafter, transfer 1% of the General Fund
revenue less grants and industrial district revenue to the Residential Street
Reconstruction Fund.
Section 9. Funding of Texas Municipal Retirement .System (TMRS) Contributions.
It is a goal of the City Council to contribute the fully funded contribution rate to TMRS to
fund the general City employees' and sworn police officers' pension. In order to
implement this goal, beginning in Fiscal Year 2015-2016, an additional2% will be added
to the City's contribution to TMRS each year until the actuarially determined fully funded
rate is met.
Section 10. Priority of City Services. The City Council recognizes the need to
provide public services which support the continued growth of the local economy and
personal income growth to insure an adequate financial base for the future.
Section 11. Operating Contingencies. The City Manager is directed to budget at
least $200,000 per year as an operating contingency as part of General Fund
expenditures in order to further insulate the General Fund unreserved fund balance
from unforeseen circumstances. The City Manager is directed to budget similar
operating contingencies as expenditures in enterprise, internal service, and special
revenue funds of the City.
Section 12. Multi-year Budget Model. Whereas many of the City's fiscal goals require
commitment and discipline beyond the one year considered within the City's fiscal
year, the City will also consider adoption of business plans necessary for the
accomplishment of City short term or long term goals. These business plans will be
presented and recommended to the City Council in the proposed annual operating
budget and shall be used for development of future budget recommendations as
necessary to accomplish these goals. The City shall also maintain business plans
and/or rate models for enterprise operations. Preparation of the annual budget will
include model for years two and three, with specific revenue and expenditure
assumptions and with respect to the debt horizon .
Section 13. Cost Recovery. The City may recover costs in the General Fund by
charging other funds for administrative costs incurred to support their operations. The
City shall attempt to pursue and maintain a diversified and stable revenue stream for the
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General Fund in order to shelter finances from short term fluctuations in any one
revenue source. In order to meet the requirements outlined herein, every effort will be
made to base rates on a cost of service model, so costs incurred for certain services are
paid by the population benefiting from such services.
Section 14. Quarterly Financial Reporting and Monitoring. The City Manager shall
provide interim financial performance reports and updates to the City Council on a
quarterly basis. These interim reports must include detailed year to date revenue and
expenditure estimates, as well as explanations for major variances to budget. The
format of the quarterly report must be relatively consistent with the adopted budget.
Section 15. Use of Nonrecurring Revenue. The City shall endeavor to use
nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may include
items such as sale of fixed assets, court settlements, or revenue collection windfalls .
Section 16. Debt Management. The City Manager shall adhere to the Debt
Management Policy adopted by Resolution 028902 on December 14, 2010, and
reaffirmed by Resolution 029321 on December 13, 2011 .
Section 17. Capital Improvement Plans/Funding. The annual Capital Improvement
Plan shall follow the same cycle as the Operating Budget. As part of the annual capital
budget process, the City shall update its short and long-r a n g e capital improvement
plans. For the three-year short-term plan, projects include any projected incremental
operating costs for programmed facilities. The long-range plan extends for an additional
seven . years, for a complete plan that includes ten years. Short-term plan projects must
be fully funded, with corresponding resources identified . As part of a concerted effort to
reduce debt levels and improve financial flexibility, the City shall pursue pay-as-you-go
capital funding where possible.
Section 18. Expenditures. Within the limitation of public service needs, statutory
requirements and contractual commitments expenditures included in the operating
budget shall represent the most cost-efficient method to deliver services to the citizens
of Corpus Christi. Efforts to· identify the most cost-efficient method of service delivery
shall continue during the fiscal year after the operating budget is adopted and may be
implemented during the fiscal year as necessary and of benefit to the public.
Section 19. Zero-Based Budgeting type of process. To prepare the City's operating
budget, the City shall utilize . a Zero-Based Budgeting type of process.
The staff shall be accountable for utilizing a Zero-Based Budgeting type of process
comprehensively for all department budgets.
Section 20. A State Hotel Occupancy Tax (HOT) Fund. A state HOT Fund was
created for the Fiscal Year (FY) 2015-16 budget as a result of the Texas 84th
Legislature's (2015) House Bill (HB)1915 that allowed Corpus Christi and three other
Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be
reinvested for beach maintenance and restoration. The expenditures in this Fund shall
not be used to offset expenditures for Gulf Beach maintenance currently paid for out of
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the local HOT Fund. The funding for Gulf Beach maintenance in the local HOT Fund
shall not fall below the lesser of $1,825,088 or 15% of HOT revenue (not including the
Convention Expansion portion) budgeted . This amount will be in addition to any
expenditures budgeted for Gulf Beach Maintenance in the Sta te HOT Fund.
Section 21 . Drought Surcharge Exemption Fund. Beginning in Fiscal Year 2018-2019
The Drought Surcharge Exemption Fees collected from large-volume industria l customers
pursuant to Ordinance 031533 shall be dedicated for development of a drought-resistant
water supply and shall not be used for operation and maintenance costs of any water
supply, treatment facility or distribution system. The Drought Surcharge Exemption Fees
paid to the City will be accounted for and reserved in a separate Drought Surcharge
Exemption Fund and used only for capital costs to develop and/or acquire an additional
drought-resistant water supply including but not limited to , payment of debt for an allowable
capital project.
ATTEST: ~ R~~
City Secretary
THE CITY O F CO RPUS CHRISTl
~~~ Jo~Com b
M o
Corpus ~sti , Texas
I B. ot .9 p\iN\Jdtr 70J8
The above resolution was passed by the following vote:
Joe McComb
Rudy Garza
Paulette Guajardo
Michael Hunter
Debbie Lindsey-Opel
Ben Molina
Everett Roy
lucy Rubio
Greg Smith
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AGENDA MEMORANDUM
for the City Council Workshop Meeting of March 28, 2019
DATE:March 18, 2019
TO:Keith Selman, Interim City Manager
THRU:Constance Sanchez, Interim Assistant City Manager
FROM:Eddie Houlihan,Director Office of Management and Budget
EddieHo@cctexas.com
361-826-3792
STAFF PRESENTER(S):
Name Title/Position Department/Division
1.Eddie Houlihan Director Office of Management and Budget
BACKGROUND:
Staff will present an overview of the current Capital Improvement Plan Financial Policies and Budget.
Staff will look to receive feedback from Council regarding any recommendations /amendments to the
policies.
LIST OF SUPPORTING DOCUMENTS:
FY 2019 BUDGET WORKSHOP
Review and discussion on Capital Improvement Plan Financial Policies and Budget
March 28, 2019
FY2019 BUDGET WORKSHOP
CIP
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FUNDING
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General Obligation Bonds – Proceeds can be declared surplus when you have
cost assurance and confirmation of adequate resources to deliver specifically
approved projects. The surplus proceeds can be used for another purpose that is
consistent with the purposes for which the debt was originally issued. For GO’s you
look at the voted proposition. You cannot use savings in one proposition to cover the
project cost of another categorical type (park money cannot be used for a street
project.) If you have 2 propositions for the same general purpose, you can share
surplus between the propositions.
Certificates of Obligation – Much of same criteria apply except you would look at
you project list in the notice of intention that was published in connection with the
debt issue.
Utility Revenue Bonds –Sold for Combined Utility System. It is the City’s
practice to assign by Utility Division. Any surplus funds are used for other projects in
respective division.
CIP POLICIES – Debt Policy
City Charter – Article V, Sec. 3 (a)(6) - The planning commission shall: Review and make recommendations
to the city council on the city's annual capital budget and any capital improvement bond program.
Debt Management Policy –
16.1 In order to ensure sufficient cash flow is available to meet capital improvement project cash requirements,
an annual debt issuance schedule is required. The Capital Improvement Planning Guide (the “Guide”) will
provide the basis for the annual debt issuance schedule. It is imperative that the City’s contemplated capital
improvement programs and all prospective letting of construction contracts comply with this Policy.
16.2 The underlying asset that is being financed must be of a non-recurring nature and must have as long a
useful life as the maturity schedule of the debt issued for the financing of the asset. Since issuing debt costs
more to the entity than purchasing assets outright, the use of financing will be carefully evaluated to ensure
that the benefits, tangible and/or intangible derived from financing exceed the related financing costs.
16.3 Capital improvements projects that qualify for debt-service financing are defined as costs to acquire a new
capital asset or improvements to an existing asset that increase capacity, improve functionality or extend the
useful life of the asset beyond its original useful life.
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CIP POLICIES – Debt Policy
16.4 On-going Capital Needs –
16.4.1 Capital projects are generally defined as costs to construct an asset or system improvement that
exceed $5,000 and have a useful life of at least the term of financing but no less than one year.
16.4.2 The City Council’s goals and policies focus on infrastructure improvements. The City strives to
maintain capital assets and infrastructure at a sufficient level to protect the City’s investment to
minimize replacement and maintenance costs, and to maintain service levels.
16.4.3 An annual review of the (1) need for capital improvements and equipment, (2) current status of
the City’s infrastructure, (3) replacement and renovation needs, and (4) potential new projects, is
implemented during the capital budget process. All projects, ongoing and proposed, are prioritized by
City staff which includes a representative from Financial Services, the Office of Management and
Budget, Engineering Services, and each department which has or may have capital improvement
project requests. For every capital project, all operating and maintenance costs/estimated incremental
revenues would be included in the proposal, as well as a start date, requested total budget, the capital
amount expected to be expended each year, and proposed sources of funding. City staff would then
match eligible requests with available sources of funding. For those capital projects identified that will
require ongoing maintenance costs once the projects are completed, no maintenance costs will be
financed with revenue bonds.
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CIP POLICIES – Debt Policy
16.4.4 Decisions are made on prioritization of proposed projects using the following criteria that must
be documented in the Guide:
Public health and safety
Regulatory requirement (agreed orders both Federal and State),
Voter-approved bonds,
Completion of existing projects already approved by the City Council,
Operational/life cycle cost drivers; and
New projects recommended by the committee noted above.
16.4.5 Capital improvements may be funded using current revenues (property tax, dedicated tax,
enterprise user fees, etc.), grant funds, contributions (such as developer contributions) and the
issuance of debt. City staff will make every effort to utilize the Pay-As-You-Go method of funding
capital improvements.
16.4.6 Upon completion of the Guide, City staff will present it to the Planning Commission as per City
Charter, Article V. Planning, Section 4: The Comprehensive Plan, and then to the City Council for
approval by ordinance. Once approved, the list of projects and a total dollar amount of capital
improvement projects would then be identified, and any additions to the Guide for that particular year
would warrant a change to the ordinance to either identify additional funding for a particular project or
to identify the reduction of one project in order to fund the additional project or change order to an
existing project.
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CIP POLICIES –Budget Administration and
Development
The Capital Budget is adopted annually as part of a multi-year improvement program that serves as a financial and
planning tool, matching needs with available resources. Annual review, an integral part of developing the capital
improvement program, offers the opportunity to reevaluate priorities and restructure the program as conditions
change. A key element in the process is the public’s input to ensure that adopted priorities are clearly responsive to the
needs of the community. The Capital Improvement Program runs in a three-year cycle, the first year of which is
adopted as the annual Capital Budget. The Capital Budget may be amended by the City Council to address critical
needs which may emerge during the year.
Developing the Capital Improvement Program and annual capital budget involves the following key steps:
1. Adoption of a Comprehensive Plan indicating desirable development patterns and multifaceted
community-based objectives.
2. Needs assessment at the departmental level and internal prioritization by an executive committee.
3. Development of a Capital Improvement Program and annual Capital Budget based on public input,
including review and adoption by the Planning Commission and other appropriate committees or boards.
4. City Council review and adoption of the Capital Improvement Program and annual Capital Budget.
5. Implementation and monitoring of the Capital Improvement Program following established priorities.
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Discussion