It is recommended that the City Council:

1.  Adopt the attached policy governing capital expenditures and improvements; and

2.  Authorize the incorporation of this policy into the Financial Management Policy Statements, including the making of non-substantive formatting changes and similar modifications or annotations.

This Mayor and Council Communication (M&C) seeks approval of a revised policy governing capital expenditures and improvements.

The attached policy defines and provides the guiding principles with respect to the financial management of capital expenses.  The policy is intended to establish guidelines for the management of certain City capital expenditures, to review and monitor the state of the City's capital assets, setting priorities for the addition, replacement and renovation of such assets based upon needs, funding alternatives and the availability of resources.  Revisions included within this document include a change in the required fund structure of how Lake Worth Lease revenue can be expended.  In the City's prior version, funds were required to be expended from the Lake Worth Infrastructure Fund.  Under this new policy, the fund structure is silent allowing staff to best manage the general ledger based upon accounting and financial reporting needs of the City.  In addition, this revised policy includes new guidelines on the priority of the use of funds when capital projects have multiple funding sources.  

Adoption of the recommended new policy is in alignment with industry best practices, which were studied in connection with the formulation of this policy.  

This M&C does not request approval of a contract with a business entity.