Page 410 - Keller FY20 Approved Budget

2.19 Budgets of Enterprise and Internal Service Funds are prepared on a working capital
basis, whereby depreciation expenses are not budgeted and capital outlay and debt service
principal payments are budgeted as expenses. Reserves of Enterprise and Internal Service
Funds will be disclosed using working capital as defined in the Fund Balance Policy, rather than
retained earnings.

2.20 Budgets of Enterprise and Internal Service Funds shall be self-supporting, i.e., on-going
revenues equal or exceed on-going expenditures (excluding depreciation) and one-time
expenditures may be funded with working capital.

2.21 Budgets shall integrate performance measures, goals and objectives, service levels and
productivity measures where appropriate, and provide a means of measuring and monitoring per-
formance, goals and productivity.

2.22 New positions and programs funded in annual budgets will be disclosed at their full
annual cost in the initial and subsequent years of funding, or at the respective full-time equivalent
costs for new positions. Even if the positions and/or programs are anticipated to begin mid-year,
the full annual costs, or the full-time equivalent costs for new positions, will be disclosed in the
budget. Positions temporarily vacant will also be disclosed at their full annual cost in the annual
budget.

2.23 When possible, replacement funds shall be created to ensure the ability to make timely
replacements.

3. Capital Improvements.

3.1 The City will develop and maintain a comprehensive five-year plan for capital improve-
ments. This plan shall be presented to and reviewed by the City Council annually. Capital
improvements for planning purposes shall be considered as all land, land improvements, building
projects, infrastructure (i.e., streets, water and wastewater improvements) and equipment
exceeding one hundred thousand dollars ($100,000) in cost.

3.2 All capital improvements should be made in accordance with the five-year plan as
adopted or reviewed by the City Council.

3.3 The City Council shall adopt an annual capital budget that is based on the five-year
capital improvement plan. This capital budget shall identify the sources of funding for each capital
project authorized for the ensuing fiscal year. Assessments and pro-rata charges may be applied
where applicable to fund capital projects.

3.4 The City's capital improvement program shall be coordinated with the operating budgets.
Operating costs associated with each capital improvement project will be identified in the capital
budget and included in the appropriate operating budget if the project is authorized.

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