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Policy Guidelines <br /> The City's Financial Management Goals and Policies provide the framework for financial <br /> planning and decision-making by the City Council, Budget, Committee, and City staff. The <br /> Capital Improvement Policies, as last reviewed by the City Council in Apri12000, are: <br /> 1. The City will plan for capital improvements over amulti-year period of time. The <br /> Capital Improvement Program will directly relate to the long-range plans and policies of <br /> the City. Operating funds to maintain capital improvements and to fund additional staff <br /> and service needs must be estimated and identified prior to making the decision to <br /> undertake specific capital improvements. <br /> 2. Whenever a service is an enterprise or utility-based operation and where the ratepayer <br /> directly benefits, the City will work to finance capital improvements by using self- <br /> . supporting revenue bonds, which could be General Obligation-backed. <br /> t. 3. Use of General Obligation bonds will be limited to major capital construction or <br /> improvements as defined in ORS 310.140 in support of general municipal services. <br /> 4. Financing of infrastructure improvements through use of Assessment bonds will be <br /> limited to those projects where the required assessed value-to-assessment ratio is met and <br /> _ to the extent the City's financial position permits the use of this financing device. <br /> 5. To maintain the City's physical assets, a current inventory of all of the City's physical <br /> assets and their condition and maintenance costs will be maintained. <br /> 6. Council will make a specific determination whether to establish a replacement reserve <br /> sinking fund when creating an asset with a value in excess of $1 million and a useful life <br /> in excess often years. <br /> Debt Capacity <br /> <br /> ` Overview <br /> ~ <br /> This section of the CIP discusses the affordability of future bond issues for unfunded projects. <br /> There are two ways to look at debt capacity. The first is to look at the capacity to issue debt <br /> under the legal constraints imposed on the City. The second is to look at the affordability of that <br /> debt recognizing there is a limit to the City's ability to repay obligations. <br /> ~ ' The City has used up only about 11% or $36.9 million of its $321 million of legal debt capacity <br /> for general obligation bonds as of June 30, 2002. It would not be prudent, however, for the City <br /> C to issue an additional $285 million of bonds to reach this legal limit. <br /> The City Council has adopted Financial Management Goals and Policies that include debt <br /> ' ( City of Eugene 2004 - 2009 Capital Improvement Program <br /> Page 11 <br /> i. <br /> _ _ <br /> <br />