Capital Improvement Fiscal Policy

General Policy

Oakdale's Capital Improvement Plan (CIP) reflects an assessment of the community's needs and its ability to pay for major improvements. It is founded on the policy that reinvestment required for replacement, maintenance, or the increased efficiency of existing systems, shall have priority over investments for expansion of existing systems or the provision of new services when utilizing general obligation funding sources. The extension of new services and/or improvements shall be funded from revenues generated through impact or dedication fees.

Funding Priorities

Capital spending proposals will generally be funded on the following priority basis:

• Those projects necessary for contributing to public health, safety and welfare.
• Those projects which will help to maintain an existing system.
• Those projects that will make an existing system more efficient.
• Those projects representing the expansion of an existing system for new service or completely new public facility or service.

Funding Principals

As a result, the following principles shall govern the implementation of the recommended Capital Improvement Plan:

1. The City will attempt to make all capital improvements in accordance with the adopted Capital Improvement Plan.

2. The City will develop a multi-year plan for Capital Improvements and update it annually.

3. The City will coordinate development of the Capital Improvement Plan with development of the annual operating budget. Future operating costs associated with new capital improvements will be projected and included in operating budget forecasts.

4. The City will use inter-governmental assistance to finance only those capital improvements that are consistent with the Capital Improvement Plan and city priorities, and whose operating and maintenance costs have been included in operating budget forecasts.

5. The City will maintain all its capital assets at a level adequate to protect the City's investment and to minimize future maintenance and replacement costs.

6. The City will project and annually update its capital equipment needs. Projects costing more than $25,000 shall be considered capital projects and shall be included in the Capital Improvement Plan.

7. The City will identify the estimated costs and potential funding sources for each capital project proposal before it is submitted to council for approval.

8. The City will consider the life cycle costs and utilize the most feasible method for all capital projects.