Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R22, Approving and Adopting Capital Asset Renewal and Replacement Policy 25-01ccd.
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Submitted By: Caroline Sturgis, OMB Director, OMB.
Strategic Plan Link: The City's Goal of a high-performing city government organization.
Executive Summary (General Business): The City has developed a Capital Asset Renewal and Replacement Reserve Policy to improve long-term financial planning and ensure funding is available for future asset replacements.
Presentation Information: Staff will be available for questions.
Staff Recommendation: Move that the Council adopt Resolution 25-RXX approving and adopting capital asset renewal and replacement policy 25-01ccd.
Alternate Recommendations:
1. Move that the Council amend the recommendation and adopt Resolution 25-RXX approving and adopting Capital Asset Renewal and Replacement policy 25-01ccd.
2. Move that the Council provide staff direction.
Background: This policy establishes a structured, forward-looking approach to identify and forecast the replacement of high-value capital assets. It requires annual contributions to a dedicated reserve based on anticipated future needs, allowing the City to spread the financial impact over time and avoid sudden budget pressures. By ensuring reserve funds are available when needed, the City can maintain service delivery standards without disrupting the operating budget. The policy is aligned with best practices recommended by the Government Finance Officers Association (GFOA) and supports the City's efforts to strengthen financial stability. In doing so, it also enhances the City's capacity to borrow and increases the likelihood of securing favorable interest rates, further reinforcing long-term fiscal sustainability.
Issues/Analysis: N/A
Financial Information: The City's funding strategy for this policy involves calculating an annual required contribution based on projected replacement costs and tim...
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