The following definitions apply in the provisions of this title:
BONDS: Means any bonds, notes, loans, interim certificates, debentures, installment-purchase agreements, leases, or other obligations that are issued or incurred under this title and are payable from revenues described in the issuing instrument.
CAPITAL IMPROVEMENT: Means either or both of the following:
A. Any addition, betterment, replacement, renewal, extension, equipping, or improvement of or to an enterprise, including but not limited to, the acquisition of land or any interests in land;
B. Any capital costs for the extension, reinforcement, enlargement, or other improvement of a facility or property, or for the acquisition of an interest in a facility or property, that is not part of an enterprise but is determined by the City to be necessary or convenient in connection with use of an enterprise.
CAPITAL IMPROVEMENT COSTS: Means all costs and expenses the City pays or incurs in connection with planning, designing, acquiring, constructing, installing, furnishing, equipping, and financing a capital improvement; placing a capital improvement in operation; disposing of a capital improvement; and obtaining governmental approvals, certificates, permits, and licenses for a capital improvement. "Capital improvement costs" includes the following:
A. Reimbursement to the City for any costs and expenses that are included in this definition, are paid by the City, have not previously been reimbursed to the City, and will not be reimbursed from contributions in aid of construction.
B. Costs of preliminary investigation and development, including the cost of performing or acquiring feasibility and planning studies; the cost of securing regulatory approvals; the cost of acquiring land and land rights; fees for engineering and contractor services; the costs of labor, materials, equipment, utility services, and supplies; and legal fees and financing expenses.
C. Working capital and working-capital reserves in such amounts as the City determines to be appropriate.
D. Interest accruing in whole or in part on bonds before and during construction of a capital improvement or any portion of a capital improvement, and interest accruing for such additional time as the City determines.
E. Deposits from the proceeds of bonds in any funds or accounts when the issuing instrument requires the deposits.
F. The payment of principal, purchase price, premium, and interest of any indebtedness, the proceeds of which were applied to capital improvement costs.
G. Training and testing costs that are properly allocable to acquiring or constructing a capital improvement or placing it in operation.
H. All costs of insurance that is in effect when a capital improvement is constructed and placed in operation.
I. All costs relating to injury and damage claims that arise out of the acquisition or construction of a capital improvement (less insurance proceeds).
J. Any Federal, State, and local taxes and payments in lieu of taxes that are legally required or permitted and apply to acquiring or constructing a capital improvement and placing it in operation.
K. Amounts due the United States of America as rebate of investment earnings on the proceeds of bonds or as penalties in lieu of rebate.
L. Amounts payable for capital costs of expanding, reinforcing, enlarging, or otherwise improving facilities the City determines to be necessary in connection with the use of a capital improvement, and the costs associated with the removal from service of, or reductions in service by, any facilities as a result of the expansion, reinforcement, enlargement or other improvement of such facilities or the construction of a capital improvement.
M. Costs of issuance of any bonds, including but not limited to costs of legal, underwriting, feasibility, engineering, and other consultants; costs of City staff; funding of bond reserve funds (including the purchase of reserve surety or any similar instrument permitted or required by the issuing instrument); costs of bond insurance or other credit or liquidity enhancement; and, in connection with issuance of refunding bonds, the costs of establishing any related refunding escrow.
N. Fees and expenses relating to any lending or credit facility or agreement for a capital improvement or any portion of a capital improvement.
O. All other costs the City incurs that are properly allocable to the design, acquisition, construction, or placing in operation of a capital improvement, including City staff costs.
P. Any other cost as the City Council may, in its discretion, define as a capital improvement cost in the issuing instrument.
ENTERPRISE: Means the properties, improvements, and works owned, controlled, or operated at any time by the City as part of a self-supporting City program that provides services to the general public on a user-fee basis and is accounted for separately from other City funds in the City's financial statements through the use of an Enterprise Fund.
FINANCE DIRECTOR: Means the City's Finance Director (or such other person serving at the time as the City's Chief Financial Officer).
INCLUDE: Include and its variants are terms of enlargement rather than of limitation, so that "includes" means "includes but not limited to", and "including" means "including but not limited to".
ISSUING INSTRUMENT: Means the resolution of the City Council adopted under this title and any indenture, trust agreement, loan agreement, lease, installment-purchase agreement, revolving- credit agreement, credit or liquidity agreement, or other instrument or agreement under which the City issues bonds.
RATE STABILIZATION FUND: Means any fund established by such name in an issuing instrument and intended to stabilize the rates paid by end-users of an enterprise over a given time.
REVENUES: Means all income, rents, rates, fees, charges, and other monies that the City derives from an enterprise and that the City Council may, in its discretion, designate as "revenues" in the issuing instrument. (Ord. 2018-02, 4-3-2018)