Page 48 - Mansfieldr FY20 Approved Budget

Capital Projects Expenditure Policy

The City will develop a multi-year plan for capital projects, which identifies all projects likely to be
constructed within a ten-year horizon. The multi-year plan will reflect for each project the likely source
of funding and attempt to quantify the project’s impact to future operating expenditures. Capital projects
will be constructed to protect or improve the community’s quality of life, protect or enhance the
community’s economic vitality, and support and service new development. To minimize the issuance of
debt, the City will attempt to support capital projects with appropriations from operating revenues or
excess fund balances, i.e. “pay-as-you-go.”

Utility Capital Expenditures

The City will design utility rates sufficient for meeting the annual coverage requirement that will
accumulate resources to replace or rehabilitate aging infrastructure that no longer can be serviced by
regular maintenance. Attempts should be made to fund the reserve at a level approximate to the annual
average coverage requirement as reported in the City’s Comprehensive Annual Financial Report.

Long Term Financial Plan Policy

The City will adopt every annual budget in context of a long term financial plan for the General Fund and
Water & Sewer Fund. Financial plans for other funds may be developed as needed. The General Fund
and Water & Sewer Fund long term plans will establish assumptions for revenues, expenditures and
changes to fund balance over a ten-year horizon. The assumptions will be evaluated each year as part of
the budget development process.

Economic Development Policy

The City will assess and collect ½ percent on each taxable sales transaction in the City and utilize the
revenue to encourage commercial and industrial development within the City. Commercial and industrial
development provides additional tax revenues, local employment, and shifts a portion of the tax base from
the homeowner to the industrial/commercial entity. The MEDC board has set a goal to split the tax
burden equally between the homeowner and industrial/commercial development.

Infrastructure Development Policy

The development of capital improvements, including street and utility construction, will provide the
necessary infrastructure for residential and commercial development. The City has instituted an
aggressive ten-year capital improvement program to develop the City's infrastructure. This program will
be funded with the growth in tax base as projected. The improvements are being timed to coincide with
annual growth in the City.

Service Development Policy

The City of Mansfield has approved 24.75 new positions in FY 2019-2020 to meet increased service
needs.

Planning and Development Policy

The City has and will increase its technical assistance to residential and commercial developers in an
effort to develop systematic growth and development. Residential and commercial zoning has been
developed to fit the City's master plan.

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