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8 <br />• The City will enact each annual capital improvement program based on review of the <br /> multi-year capital improvement needs. <br />• The City staff will coordinate development of the capital improvement budget with the <br /> development of the operating budget. Future operating costs associated with new <br /> capital improvements will be projected and included in operating budget forecasts. <br />• The City will consider the Capital Improvement Program as a priority in the <br /> designation of any undesignated reserves. <br />• The financing investment in infrastructure and equipment may be constrained by levy <br /> limits and the ability to raise property taxes. With levy limits, the use of debt may be <br /> needed to create a property tax levy outside of levy limits. <br />• The Council action to order a public improvement project or other capital improvement <br /> shall include appropriate bond reimbursement provisions. This action is needed to <br /> preserve the ability to issue tax-exempt bonds and use the proceeds to reimburse <br /> expenditures made on the project. <br /> <br /> <br />VIII. Street Maintenance <br />Purpose: The City is committed to maintaining its streets in good condition in order to maximize <br />their useful lives. Appropriate street maintenance will enable the City to maintain a stable property <br />tax rate and minimize the frequency of assessments to residents <br />Policy: The City will perform on-going street maintenance improvements to sustain a high level <br />of street condition and to avoid more expensive reconstruction projects. The following <br />considerations and procedures will be used to comply with this policy. <br />• Street maintenance activities include mill & overlay, cold-in-place recycling, and full <br />reconstruction. These activities will be funded through the Infrastructure Fund. In <br />addition, the City will fund and conduct annual sealcoating and crack filling of streets <br />using monies in the General Fund. <br />• The Infrastructure Fund will be funded with a combination of special assessments, <br /> state aid for street maintenance (MSA), general property taxes, grants, closed bond fund <br /> residuals and other fees such as the gravel tax and franchise fees. <br />• It is necessary and appropriate that benefited properties be assessed a portion of the <br /> improvements. The amount of street maintenance improvements assessed to benefited <br /> properties vary by the nature of the improvement. The costs of street maintenance shall <br /> be assessed in accordance with the assessment policy attached as Appendix C E. <br />• The City will issue general obligation bonds to finance the costs of street improvement <br /> projects as needed. <br />• The City will annually prepare five year Infrastructure budget following the procedures <br />described in the Capital Budgets section. <br /> <br /> <br />IX. Debt Management <br />Purpose: Debt provides the City with a flexible revenue source that can be used to finance <br />non-recurring capital expenditures in advance of when it would be possible to do so on a