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The city will anticipate equipment replacements and additions in its capital improvement program. The city will project the future operating costs of capital improvements into the upcoming general operating budgets. For example, the addition of park shelters, play equipment and landscaping will require more park maintenance expenditures from the operating budget. The city will maintain its capital assets, including infrastructure, land, buildings and equipment, to protect the city's capital investment and to minimize future capital expenditures. The city will use the least expensive financing method for all capital projects including multiple cost estimates and bids when appropriate and required by law. The city's infrastructure fund will loan funds to any construction fund with a deficit due to expenditure and revenue timing. The storm sewer, water and sanitary sewer funds will transfer funds to construction funds for their share of any unassessed portion of the cost of those items. VI. DEBT POLICIES A. PURPOSE the debt policies ensure that the city's debt 1) does not weaken the city's financial structure; and 2) provide limits on debt t'o avoid problems in servicing debt. This policy is critical for maintaining the best possible credit rating for the city. B. POLICY The city will not use long -term debt for current operations. The city will confine long -term borrowing to capital items or capital projects. The city will pay back bonds within a period not to exceed the expected life of the project. The city will not exceed 2 percent of the market value of taxable property for general obligation debt per state statutes. The city will consider the maintenance of the best possible credit rating in making all decisions on debt. The city will follow a policy of full disclosure on financial reports and bond prospectus. The City will refinance or call any debt issue when interest rates are beneficial for future debt savings.