Agenda

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15.

Work Session and Regular Meeting

Meeting Date:	06/12/2018
Department:	Finance
Pillars:	Gold Standard in Financial Health
Milestones:	Attract and retain innovators in target industries

AGENDA CAPTION:

Present, Discuss, and Consider Action on a Resolution Amending The Town's Financial Policies.

BACKGROUND:

Currently, Chapter 2 (Administration), Article IV (Finance), Section 2-180 (Debt Expenditures) of the Code of Ordinances provides for the issuance of debt to fund capital projects.

Staff is proposing changes to Subsections (a) and (b) of this section, and proposing the addition of Subsection (e):

The proposed change in Subsection (a) will allow for the issuance of debt for capital purchases, such as vehicles and equipment, in addition to capital projects.
The proposed change in Subsection (b) will allow debt issued for capital purchases, in addition to capital projects, to extend beyond the maximum maturity of 15 years in instances where the purchase will significantly benefit the community beyond the 15-year period.
The addition of Subsection (e) will provide a clarification of the types of debt instruments that Council allows for to fund capital projects and capital purchases. The types of debt that will be available include general obligation bonds, certificates of obligation, tax notes, and capital leasing arrangements.

There are no changes proposed for Subsections (c) and (d).

These capital purchases will follow section 2-177 operating expenditures of the financial policies as previously updated. This section states that the purchase cost must equal or exceed $5,000 with a useful life of at least three years.

The proposed changes, as recommended by staff, are included in the attached ordinance. A red-line version of the current ordinance with the proposed changes is also attached.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance - Financial Policies Amendment
Red-Lined Version - Financial Policies Amendment