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CAPITAL PROJECT EXPENDITURES

1. The City will develop a multi-year plan for capital projects, which identifies all
projects likely to be constructed within a five 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.

2. Capital projects will be constructed to:

a. Protect or improve the community’s quality of life.
b. Protect and enhance the community’s economic vitality.
c. Support and service new development.

UTILITY CAPITAL EXPENDITURES

1. The City will design utility rates sufficient to fund the day-to-day operations of the
utility system and to maintain compliance with bond covenants associated with
debt issued for utility capital projects. Whenever possible, the City will attempt to
fund capital projects from unallocated Utility Fund reserves.

LONG-TERM FINANCIAL PLANS

1. The City will adopt every annual budget in context of a long term financial plan
for the General Fund. Financial plans for the other funds may be developed as
needed.

2. The General Fund long-term plan will establish assumptions for revenues,
expenditures and changes to fund balance over a five year horizon. The
assumptions will be evaluated each year as part of the budget development
process.

City of Azle 2020-2021 Budget 29