Page 95 - CityofBurlesonFY26Budget

A. PREPARATION. The City will develop a 5-year capital improvement plan (CIP) to
include all capital projects being considered and all resources for capital funding.
The budget will be prepared on a fiscal year ending calendar and reported
annually. The 5-year CIP will be prepared by the Department Director and
presented to the City Council during the budget process. The Finance Director will
work closely with Departments to ensure funding capacity is available.

B. CONTROL. All capital project expenditures must be appropriated in the capital
budget at a project level. The Finance Department must certify the availability of
such appropriations, or the availability of resources needed to be appropriated
before a capital project contract is presented to the City Council for approval. Any
remaining funds of a completed project not allocated by the City Council will be
closed into an unallocated account in the same fund. Similar projects are to be
grouped together in a fund based on the type of project and source of funding,
using the similar Capital Projects Fund classifications for reporting purposes in the
Annual Financial Report.

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 years. The replacement and maintenance for capital items should also
be projected for the next 5 years. Future maintenance and operational costs will
be considered at the initiation of a project so the costs can be included in the
relevant operating budget.

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

E. INFRASTRUCTURE MAINTENANCE. The City recognizes that deferring
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 City's infrastructure. The inclusion of infrastructure maintenance and
replacement costs in the current operating budget will place the burden of the
costs and repairs on the current users of the systems.

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

IX. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS

A. OPERATIONAL COVERAGE. (NO OPERATING DEFICITS). The City will maintain an
operational coverage factor of 1.00, such that current operating revenues (plus

88