Loading...
HomeMy WebLinkAbout2017-163 CCRMember April Graves introduced the following resolution and moved its adoption: RESOLUTION NO. 2017-163 RESOLUTION ADOPTING AMENDMENTS TO THE FINANCIAL POLICIES SECTION OF THE BROOKLYN CENTER CITY COUNCIL CODE OF POLICIES WHEREAS, the City Council of the City of Brooklyn Center last updated the Capital Improvements Fund and Infrastructure Construction Fund Expenditure Policy on April 9, 2007; and WHEREAS, revisions to the Capital Improvements Fund and Infrastructure Construction Fund Expenditure Policy have been reviewed by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota that the amended Capital Improvements Fund and Special Assessments Construction Fund Expenditure Policy attached hereto as Exhibit 1 be incorporated into the Code of Policies and hereby adopted. ber 23, 2017 Date Mayor ATTEST: J6W k/Im"ot— City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Dan Ryan and upon vote being taken thereon, the following voted in favor thereof: Tim Willson, Marquita Butler, April Graves,Kris LAwrence-Anderson, Dan Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2017-163 FINANCIAL POLICIES EXHIBIT 1 2.41 Capital Improvements Fund and lnfr.>Aigi-etu-re Special Assessments Construction Fund Expenditure Policy 1. Policy Objective The City of Brooklyn Center makes large unrestricted capital expenditures through one of two funds. Generally, small capital expenditures are funded through the general fund and planned for as part of the annual budget process for the general fund. Large unrestricted capital expenditures for municipal buildings and park improvements are funded through the capital improvements fund based on City Council Resolution No. 68-246, which was approved in 1968. Large unrestricted capital expenditures for street and utility improvement projects are funded through the it--as'Fuetut-e special assessments construction fund. Capital expenditures are also made through other fiends such as the M.S.A. construction fund, the street construction fund, the water utility fund, the sanitary sewer utility fiord, and the storm drainage utility fund and the street light utility fund. These funds each have restrictions in place to guide their expenditures. The objective of this policy is to clarify funding for all unrestricted capital expenditures by specifically defining which capital expenditures are eligible for funding through the capital improvements fund and inf+as*,-uetu'o special assessments construction fund. Unrestricted capital expenditures not meeting the criteria for the capital improvements fund must be made from the general find operating budget. Specifically excluded from this policy are capital expenditures that are to be reimbursed by insurance proceeds. These may be accounted for through the capital improvements fund at the discretion of the Direetof of Finance Director. 3. Use of Funds The special assessments construction fund accounts for the resources and expenditures required for the acquisition and construction of infrastructure improvements that are financed wholly or in part by special assessments levied against benefited properties. RESOLUTION NO. 2017-163 EXHIBIT 1 Only those expenses that will be reimbursed via special assessment revenues or paid for from bond proceeds of which the underlying bonds will be repaid solely from special assessments qualify for reporting in the special assessments construction fund. The —1--t—we ^special assessments construction fund may be used, pursuant to this policy, for expenditures on infrastructure improvements and similar projects having an aggregate value in excess of $50,000. The types of expenditures contemplated by this policy include projects such as: ® street repair, replacement, and construction ® bridge rehabilitation and construction ® water, sanitary sewer, storm drainage, and street light utility improvements The capital improvements fund may be used, pursuant to this policy, for expenditures on capital equipment, infrastructure improvements and construction, and similar projects having an aggregate value in excess of $50,000. The types of expenditures contemplated by this policy include projects such as: ® building construction, repair, reconstruction, and remodeling, including component systems for heating, ventilation, and air conditioning ® equipment and furnishings, including furniture, lights, and communications cabling ® park landscaping, shelter, and improvements ® computer, radio, and telephone systems ® City contribution portion of cost -share or grant -funded infrastructure projects The expenditures from the capital improvements fund and inf+aS+,•„^+<,,.^ special assessments construction field are to be used for general governmental capital needs and not for enterprise fund capital needs, except as the general governmental portion of a joint project for both general and enterprise purposes. Additionally, the capital improvements fund may be used to provide loans to other funds maintained by the City in accordance with the City's special assessment and internal loan interest rate policy. u„« o< o,. roans f.,,,,-, the eapital iffiprovemeni fund may only be ffl.adle- +I-- F-1-0-11 to geneFate Fevenue d Fepay the loan within 10 �TaFS at PFeVailiBg interest rates. 4. Authority to Spend Expenditures meeting the above criteria may be funded through the capital improvements fund based on the following authority limits: RESOLUTION NO. 2017-163 EXHIBIT 1 1. Expenditures from $0 to $50,000: Not eligible for funding from the capital improvements fund. Funding is required through the general fiend operating budget. 2. Expenditures from $50,001 to $300,000: The City Council may, through simple majority, approve these expenditures. 3. Expenditures over $300,001: Following a public hearing, the City Council may, through a 4/5ths majority, approve expenditures in this category. 5. Spending Limitation/Fund Balance Requirement The objective as described in Section 1 and previously defined in City Council Resolution No. 68-246 requires the capital improvements fiind and iNfi•^s* special assessments construction fiend to be a permanent source of funding for planned major expenditures. As such, the following criteria is established to comply with that intent: 1. Planned Expenditures: If the proposed capital expenditure is in excess of $300,000, it must have been included in the fifteen -year Capital Improvement Program for at least two years. 2. Additionally, the fifteen -year Capital Improvement Program must be approved by the City Council at a public hearing on an annual basis.