Page 119 - Pantego FY22 Operating Budget

D. DEPOSITORIES. The Town will enter into a depository agreement with one or more
banks for a specified period of time and specified fess for banking services. The term of
each depository agreement shall not exceed five (5) years unless otherwise approved by
the Town Council.

VIII. CAPITAL BUDGET AND IMPROVEMENT PROGRAM

A. PREPARATION. The Town will endeavor to develop a capital budget which will include
all capital projects and all capital resources. The budget will be prepared annually on a
fiscal year basis. The capital budget will be prepared by the Town Manager and Finance
Director with the involvement of all required departments.

Capital improvements for planning purposes shall be considered all land, land
improvements, building projects, infrastructure (i.e., streets/drainage, water, and
wastewater improvements) and equipment.

Final payments of construction contracts will be approved by Town Council. This will
require previous involvement of departments to verify that all specifications have been
satisfactorily met.

B. CONTROL. All capital project expenditures must be appropriated in the capital budget.
The Finance Department must certify the availability of such appropriations or the
availability of resources so any appropriation can be made before a capital project
contract is presented to the Town Council for approval.

C. PROGRAM PLANNING. The capital budget will include capital improvements program
plans for future years. The planning time frame should normally be at least five (5) years.
The replacement and maintenance for capital items should also be projected for the next
five (5) years. Future maintenance and operational costs will be considered, so that
these costs are included in the annual operating budget.

D. FINANCING PROGRAMS. Where applicable, assessments, impact fees, pro-rate
charges, or other fees should be used to fund capital projects which have a primary
benefit to specific, identifiable property owners.

E. INFRASTRUCTURE MAINTENANCE. The Town recognizes that deferred maintenance
increases future capital costs. Therefore, a portion of the appropriate fund's budget will
be set aside each year to maintain the quality of the Town's infrastructure. The inclusion
of infrastructure maintenance and replacement costs in the current operating budget
places the burden of the costs and repairs on the current users of the systems.

F. REPORTING. Periodic financial reports will be prepared to enable the Department
Managers/Directors to manage their capital budgets and to enable the Finance
Department to monitor and control the capital budget as authorized by the Town
Manager. Summary capital projects status reports should be presented to the Council
periodically.

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