HomeMy WebLinkAboutRESOLUTIONS-2002-071-R-029/26/02
0 71 -R-02
A RESOLUTION
Capital Improvement Fund Policy
WHEREAS, the City Council does hereby adopt for the fiscal years commencing
2003-04 the Capital Improvement Fund Policy marked as exhibit A and attached hereto
by reference.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That this Resolution shall be in full force and effect from and after
its passage and approval in the manner provided by law.
Lorraine H. Morton, Mayor
ATTEST:
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Adopted: 120021
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Capital Improvement Fund Policy
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Section I: Objectives and Priorities
The overall goal for Evanston's capital improvement effort is:
A comprehensive capital improvement program that is used by decision
makers to guide capital investments, make the best use of limited
resources and provide community facilities that function well and
contribute to the attractiveness, public health and safety of the City.
To accomplish this goal, a broad set of objectives and policies has been developed to guide
preparation and monitoring of the capital improvement program. These broad objectives,
priorities and policies adopted by the City Council guide staff each year as a capital
program is developed and presented to the City Council for review and consideration.
Objectives
• Undertake a comprehensive assessment of all capital needs and develop a strategic
plan to meet the city's capital needs, so that projects and funding are rationally •
sequenced, coordinated and kept on the public agenda.
• Undertake capital improvements that are needed to maintain existing public
facilities, increase operating efficiency and reduce operating costs.
• Undertake capital investments that encourage and support economic development
or directly produce income.
• Undertake capital improvements that are of the highest quality that the city can
afford which enhance Evanston's physical appearance, public image, and quality of
life and promote public health and safety.
• Limit the extent to which local property taxes are required to finance capital
improvements.
• Plan all capital projects to meet ADA requirements.
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Priorities
• Project major capital improvement replacement needs to cover a 20 to 30 year
period so that a long-range capital maintenance plan can be developed.
• Set priorities for capital improvements and match projects with appropriate funding
sources.
• Monitor implementation of the Capital Improvement Program through periodic
capital improvement staff meetings and reports to the Administration and Public
Works Committee.
• Undertake an annual review of capital improvement funding sources and an
assessment of capital improvement projects proposed for the following years.
• Commit funds annually for improvements so that incremental progress can be made
toward long-range goals.
• Coordinate planned capital improvement projects where opportunities exist to do
• so.
• Leverage local capital improvement funds to the extent possible.
• Give priority to projects that further the objectives of the Comprehensive General
Plan.
More specific policies have also been written to guide the scheduling and prioritization of
projects within each of the major project classifications.
Economic Development
• Make capital investments needed to realize the full potential of the Downtown
Redevelopment.
• Coordinate improvements made in retail and commercial areas.
• • Develop and implement programs to upgrade and maintain streetscapes in each
neighborhood business district within the city.
Capital Improvement Fund Policy 2
• Develop and implement plans for capital needs of neighborhood economic
development. •
Environment
• Maintain water system improvements needed to ensure a safe and adequate water
supply.
• Develop and implement programs to eliminate environmental hazards where they
exist in City facilities and on public grounds.
• Participate in development of area wide solutions to the problem of solid waste
disposal and promote local recycling and waste reduction efforts to minimize solid
waste disposal requirements and conserve resources.
• Complete the long-range comprehensive sewer plan.
Parks and Recreation
• Rehabilitate parks through periodic replacement of pavement, athletic fields and
courts, equipment, site furnishings, infrastructure and landscaping. •
• Undertake improvements to enhance and protect the lakefront park system.
• Maintain Evanston's community recreational facilities to the high standard
expected.
• Bring play equipment into compliance with current CPSC and ASTM safety
guidelines and ADA requirements.
Public Buildings
• Consider life cycle costs (long-term costs of maintenance, operation, utilities and
financing) in making decisions concerning construction, purchasing, disposal or
rehabilitation of public facilities.
• Continue to undertake preventive maintenance, energy conservation, and
rehabilitation programs for public buildings.
Capital Improvement Fund Policy 3
• Undertake projects needed to improve the security of public buildings and
• facilities.
• Complete the fire station construction and improvement plan.
• Complete the rehabilitation of the Police/Fire Headquarters.
• Undertake projects and improvement to municipal facilities to meet the standards
of the Federal _Americans with Disabilities Act (ADA).
• Develop and implement a plan for the municipal offices.
• Implement policy advocating art within city building projects, in compliance with
Title 7, Chapter 16 of the City Code.
Transportation
• Improve the condition, efficiency and safety of Evanston's circulation system.
• Undertake improvements needed to keep municipal parking facilities well
• maintained, safe and attractive.
• Plan and implement expanded public parking inventory.
• Continue the City's programs for maintaining curbs, gutters and sidewalks.
• Evaluate all sidewalks and develop an improvement schedule.
• Enhance livability of neighborhoods by implementing various traffic controls.
• Improve Evanston's remaining unpaved streets and alleys.
• Implement a citywide bike plan and encourage intermodal transportation.
• Ensure adequate street lighting to balance crime prevention, safety and residential
atmosphere.
• Develop plans and programs to improve the appearance and maintenance of rail
• embankments, viaducts and rail stations.
Capital Improvement Fund Policy 4
Section II: Fiscal Management
Capital Expenditure Policies •
• Drawn from the long range capital needs list, a five year capital improvement program
will be developed and updated annually, including anticipated funding sources.
• The City will maintain all its physical assets at a level adequate to protect the City's
capital investment and to minimize future maintenance and replacement costs.
• The City will coordinate development of the capital improvement budget with the
development of the operating budget. Future operating costs associated with new capital
improvements will be projected and included in operating budget forecasts.
• If a new project (non -emergency) is identified during the fiscal year, staff shall prepare a
report to the City Council describing the project, and if necessary recommend a decrease
in another approved project so as not to alter the overall appropriation for the capital
budget.
Capital Financing Policies
• Long-term borrowing will not be used to finance current operations or normal
maintenance. •
• Capital projects financed through the issuance of bonds will be financed for a period not
to exceed the expected useful life of the project.
• The City will establish an appropriate mix of bonded debt and pay-as-you-go financing in
the funding of capital projects. The City will strive to find more streams of revenue to
support pay-as-you-go financing of its future capital improvements.
• Dedicated revenue stream options include but are not limited to excess funds, additional
taxes (i.e. motor fuel tax for street improvements) and use of tax increment financing
revenues as they become available.
• Outstanding tax -supported debt shall not exceed $75 million.
•
Capital Improvement Fund Policy
a
Capital Project Planning and Cost Containment
• City staff will meet monthly to review the progress on all outstanding projects. Semi-
annual reports will be presented to the Administration & Public Works Committee.
• Identification of funding opportunities should be included within the project development
phase.
• Recognize that most projects will take at least two years to plan and implement.
• Where appropriate, separate project planning and execution costs, acknowledging that
approving a study does not guarantee the implementation of the project.
• For any enterprise fund or storm water management fund that is supporting debt, an
annual rate study will be performed to ensure that the fees or rates are sufficient to meet
the debt service requirements.
• A five —year projection of revenues and expenditures for the general, special revenue, and
enterprise funds should be prepared to provide strategic perspective to each annual budget
process.
Contingencies Account
• • A contingency line item should be included for each project equal to 10% of the project's
estimated cost.
• A bond funded capital plan contingency account shall be included at the beginning of
each fiscal year. This shall be equal to 10% of the current year general obligation capital
improvement projects.
• Funds from the overall CIP contingency account can be used to supplement a project if
none are available within the department's existing projects.
• Any unused contingency funds could be reallocated by the City Council at the end of the
fiscal year.
Emergency Fund Reserves
An emergency account within the capital improvement fund shall be established to fund
emergency capital needs.
• The emergency account shall be initially funded through a one-time revenue source and
replenished with a percentage of project surpluses at the end of the fiscal year.
Capital Improvement Fund Policy 6.
Grants
• City staff should seek grants for projects which are in the current fiscal year, the five year
plan, or fund a recognized city need.
• For projects not currently funded or in the 5 year plan, the Council must approve the
reduction or elimination of a previously planned project
If a grant is received, the original funds can be used in any of the following ways:
— Reallocated to a new project within the 5 year plan within the same area.
— Reallocated to a priority list of projects approved by the City Council during
consideration of the capital plan.
— Used to expand the scope of the existing project for which the grant is received.
— Placed in the contingency fund for future matches or cost overruns.
— Placed in an emergency fund for unanticipated projects.
• The city shall hire a grant writer for a two-year trial period.
Community Development Block Grant Funds
• A comprehensive program for all capital projects in the CDBG target area will be
presented to the CDBG Committee. •
•
Capital Improvement Fund Policy