HomeMy WebLinkAbout2021-06-08; City Council; Resolution 2021-139RESOLUTION NO, 2021-139
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE ESTABLISHMENT OF CITY COUNCIL POLICY
NO. 91 — LONG-TERM GENERAL FUND CAPITAL FUNDING POLICY AND THE
TRANSFER OF ALL REMAINING INNOVATION FUNDS TO THE TECHNOLOGY
INVESTMENT CAPITAL FUND
WHEREAS, the City Council of the City of Carlsbad, California, has determined financial policies
are central to a strategic, long-term approach to financial management; and
WHEREAS, the City Council desires to establish a long-term capital funding policy (Attachment
A) to help ensure resources are available to meet the city's long-term capital goals; and
WHEREAS, the City Council further desires to follow best practices and enhance the
transparency of funding for innovation projects by segregating and separately tracking the funding
from the General Fund operating budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.That the City Council approves new City Council Policy No. 91 — Long-term General Fund
Capital Funding Policy (Attachment A).
3.That the Deputy City Manager, Administrative Services is authorized to transfer the
Innovation Fund balance from the General Fund to the Technology Investment Capital
Fund in fiscal year 2021-22.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 8th day of June, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
BARBARA ENGLESON, City Clerk
(SEAL)
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Attachment A
Policy No. 91
Date Issued 03/23/2021
Resolution No. 2021-139
City Council
POLICY STATEMENT
Subject: Long Term General Fund Capital Funding Policy
Purpose
The purpose of this policy is to establish a long-term capital funding policy to:
•Ensure the needs of the city are met;
•Provide a funding source for long-term, large value capital purchases; and
•Demonstrate continued prudent fiscal management.
This policy also sets forth guidelines for establishing a plan to replenish capital fund balances to
include both how such replenishment is to be funded and the period over which the
replenishment is to occur.
Background .
Many city assets demand large capital expenditures, examples include roads, buildings, parks,
and information technology infrastructure. The city funds the General Fund portion of these
necessary investments in four ways:
1)The General Capital Construction Fund is primarily used to fund new General Fund
infrastructure projects that do not fall into the Technology Investment Capital Fund
projects, such as such as streets, libraries, parks, fire stations and administration
facilities.
2)The Infrastructure Replacement Fund is primarily used to fund the General Fund's
proportional share of repair and replacement of infrastructure projects that do not fall
into the Technology Investment Capital Fund projects, such as such as streets, libraries,
parks, fire stations and administration facilities, water, sewer and drainage facilities and
other facilities located on or in the ground.
3)The Technology Investment Capital Fund is primarily used to fund the General Fund's
proportional share of new capital investments that are principally comprised of
technology, including hardware, software and other digital technology.
4)Information Technology Asset Replacement Fund, an Internal Service Fund, is primarily
used to fund all contributing Funds' IT hardware repair and replacement costs.
Statement of policy
It is the policy of the City of Carlsbad to adopt an annual budget that includes a transfer from
the General Fund to one or more of the city's long-term capital funds. The long-term capital
funds include the General Capital Construction Fund, the Infrastructure Replacement Fund and
the Technology Investment Capital Fund.
City Council Policy Statement No. 91
March 23, 2021
Page 2
The city commits to targeting a transfer to the city's long-term capital funds of 6% of budgeted
General Fund revenues. The transfers shall be proposed during the annual budget process or on
an as needed basis for the City Council's consideration.
It is the policy of the City of Carlsbad to adopt an annual budget that includes a chargeback by
the IT Internal Service Fund to fund the city's future IT hardware repair and replacement
related needs.