Agenda - 08-03-1987 - Laserfiche WebLink

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0Th TO: THE BOARD FROM: SHIRL RE: POLICY ON CAPITAL EXPENDITURES AND CAPITAL RESERVES DATE: 20 JULY 1987 You asked that I bring back formally some policy suggestions made at the beginning of our work session on Capital Improvements. I am suggesting three additional policies and all five I will place on the 3 August agenda. We shall need not only to decide if we want to adopt the policies, but when we want to make them effective. Discussion directed that for some items the budget should be adjusted for the first policy to take place in the current year ' s budget -- no such adjustments have been made -- nor were we especially clear. The first three have all been agreed to previously in some form or by direction of the Board since I have been a member. Not only do I think the suggestions are good policy, I believe each one moves us toward the direction of pay-as-we-go capital financing with just one more bond issue needed as a bridge. 1 .Use of the optional half-cent sales tax capital reserve, or any other capital reserve that may be established, be limited to buildings , land and building improvements, renovations, major restorations and lease purchase of equipment costing over $50,000. 2 . Use of the 2/3 net debt reduction bond option be limited to either the policy adopted in relation to the Efland sewer or to an even stricter policy that limits use only to a major emergency. 3. For some years we have been paying approximately $800,000 a year towards interest and capital on school debt. I suggest once more that we continue appropriating $800,000 a year as the payments fall , placing all surplus in the school capital reserve fund rather than have it be lost little by little in the general fund. After 1999, a full $800,000 would be appropriated to that fund each year. 4. Set school current capital at $750,000 for a period of five years and limit the portion of current capital that may come from the school capital reserve fund to the items listed for the county under policy 1 . Roof repair and replacement would be included in the $750,000. 5 . Gordon suggested creating a special capital reserve for vehicle purchase. It should be our policy that allocations made to such a fund be taken from current year revenues and not from optional sales tax monies.