(A) There is hereby created a reserve fund to be known as the "Capital Reserve Fund". The amounts deposited in this reserve fund are to be used only for the purposes defined in this section.
(B) The Capital Reserve Fund shall be created for the purpose of accumulating funds for the purpose of making purchases of capital items including, but not limited to land, infrastructure, equipment, and vehicles. These funds are to be contributed by the Water Operating Fund, Wastewater Operating Fund, the Sanitation Operating Fund, and other funds as deemed appropriate by resolution of the City Council.
(C) The funding level for all funds participating in the Capital Reserve Fund is to be determined in accordance with five-year capital plans adopted specific to each participating fund, which are to be updated each year. This funding is to be transferred annually from the participating funds to the Capital Reserve Fund.
(D) Amounts held in the Capital Reserve Fund are to be designated by purpose for use only by the fund from which the funds were contributed. Accounting processes shall be established to provide for reporting by purpose.
(E) Amounts held in the Capital Reserve Fund are intended to only be expended in accordance with a multi-year capital plan. The circumstances when it is appropriate to spend capital amounts outside of this plan are subject to the objective criteria outlining the parameters of acceptable uses of capital funds as outlined below. The existence of the circumstances must be declared by a majority vote of the governing body establishing that one or more of the criteria listed below exists:
(1) Situations in which an unexpected capital need has arisen outside of the bounds of the established multi-year capital plan that could not have reasonably been foreseen;
(2) Circumstances when amounts included in the Capital Reserve Fund are determined to be in excess of the amounts needed to fund the current multi-year capital plan and a need for other capital items outside of the current capital plan exists;
(3) Expenditures for emergency situations for life, health, or public safety issues that involve public infrastructure for which no existing appropriation exists. Under these circumstances, the City Council may also elect to allow capital reserve balances from other purposes to be borrowed for a definite period of time; and/or
(4) Expenditures as matching funds for grants to purchase capital items.
(F) The initial funds required to participate in the Capital Reserve Fund for which no current five-year capital plan exists, must create a five-year capital plan prior to the adoption of the fiscal year 2023-2024 budget. These funds will begin contributing to the Capital Reserve Fund at that time. Funds that are required to participate by a resolution of the Council shall be given 15 months from the adoption of said resolution to create a five-year capital plan and will begin participating in the budget year immediately following the adoption of the capital plan.
(Ord. 2016, passed 12-21-21)