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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: it CI 'k Adopted: 120021 0 Capital Improvement Fund Policy is 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. 0 • 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