4.9. SR 06-17-2019 - Laserfiche WebLink

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In most cases, private developers will be responsible for the construction of streets, sanitary sewer, watermain, and storm water collection systems needed to serve new development. The city may install infrastructure and assess property owners when this approach provides the best alternative. The city will finance street and utility oversizing and trunk utility systems. The city shall maintain a system of capital charges for sanitary sewer, storm water, and water services. The charges will be collected when undeveloped land is platted and when new users connect to the system. Revenues from the capital charges will be accumulated and used to pay for the capital investment related to the maintenance and expansion of the utility system. The city will strive to maximize the revenues collected from capital charges to protect existing utility users from bearing the costs associated with growth. The City Council will work with the Utilities Commission to set capital charges for the water system at appropriate levels. In not less than three-year intervals, city staff shall evaluate the amount of all capital charges and recommend necessary changes to the Council and the Commission. The city will maintain an equipment acquisition and replacement program. The city will annually update the plan to provide funding for all equipment purchases over $25,000 to be made in the next five fiscal years. The city shall attempt to fund the program without the use of debt. It is recognized that state-imposed levy limits may create the need to incur debt for equipment acquisition. The city shall establish and maintain a program for the construction and maintenance of the municipal storm water management system. Financial projections for the storm water management system shall be updated annually. The city shall establish and maintain a program for the maintenance of the municipal street system. The initial sealcoating in new subdivisions will be financed with monies collected for this purpose at the time of original development. Other sealcoating will be financed through the Pavement Management Fund and other maintenance activities will be financed through the General Fund. The city shall prepare an ongoing plan for the reconstruction of all city streets and will provide a sustainable source of funding for the street reconstruction program. The city will annually prepare cash flow projections for street reconstruction projects to ensure adequate and ongoing funding. Capital Assets and Capitalization Thresholds A capital asset is a tangible asset that has a life expectancy of more than one year. For financial statement reporting purposes, the city reports capital assets in the following categories and has established a capitalization threshold for each category: Capitalization Category Threshold__ Land $10,000 Buildings $25,000 Other Improvements $25,000 Machinery and equipment $10,000 Vehicles $10,000 Infrastructure $100,000 Construction in progress Accumulate all costs and capitalize if over $100,000 when completed Other assets $10,000 Financial Management Policies Page 11