Loading...
HomeMy WebLinkAbout04.03.24 LRFC Agenda Materials Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us MINUTES FOR THE LONG-RANGE FINANCE COMMITTEE February 7, 2024 PLEASE NOTE the City of Oshkosh Long Range Finance Committee met on Wednesday, February 7, 2024, at 5:15 pm, in Room 404 at the Oshkosh City Hall, 215 Church Avenue. The meeting was called to order by Adam BellCorelli at 5:15pm. Members Present: Adam BellCorelli, Koby Schellenger, Brian Wendt Members Absent: Mike Ford, John Zarbano, Todd Hutchison, Andrew Kramp Staff Present: Russ Van Gompel – Director of Finance, Julie Calmes - Assistant Director of Finance, Denise Edwards – Finance Management Analyst, Kelly Nieforth – Director of Community Development, James Rabe – Director of Public Works ROLL CALL – Denise Edwards I. Citizen Input  None II. Approval of December 6, 2023 Minutes:  MOTION TO APPROVE: Koby Schellenger; 2nd Adam BellCorelli  CARRIED: Approved unanimously, no added comments III. TIF Policy: Continued Discussion  Recap was given from last meeting. Kelly Nieforth was present to answer all committee questions concerning the TIF application and policy. Department of Revenue states that no more than 12% of City’s equalized value can be in TIF Districts. At last glance we are at 7%. They are all project based and pre-vetted before council to make sure they follow all guidelines.  MOTION TO CONTINUE TIF Policy: Adam BellCorelli; 2nd Brian Wendt  CARRIED: All in favor, none opposed IV. Special Assessment Policy: Continued Discussion  James Rabe, Director of Public Works, answered any questions about special assessments that came up. He mentioned that the option of Transportation Utilities was turned down by council in the past. Twelve plus options were presented to council to choose from concerning special assessments. A combination of a $35 Vehicle Registration Fee and $750,000 from Water, $750,000 from Sewer, and $750,000 from Stormwater will cover the elimination of streets and sidewalk Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us assessments starting January 1, 2024 to make up $3.75 million. Finance Director VanGompel suggested that the committee table this area of topic for the next meeting until Council gives more direction on the initiative.  Presentation on proposed funding mechanism to replace special assessments Finance Director VanGompel presented the information on the upcoming Vehicle Registration Fee funding that will assist in eliminating the special assessments for streets and sidewalks on projects starting January 1, 2024. The PowerPoint and Frequently Asked Questions are on the City of Oshkosh Website. V. Capital Fixed Asset Policy  Assistant Finance Director Julie Calmes reviewed the Capitalized Fixed Asset Policy. Julie explained that the Chart and Financial Statement Breakdown was added. Todd suggested a change to the verbiage for Objective B to clarify what does and what does not qualify for repairs. Committee decided to bring this item back in April for further contemplation. VI. Next Meeting Date & Agenda Items  Meeting set for April 3, 2024 at 5:15pm  Next Agenda: Review Capitalized Fixed Assets Policy, Special Assessment Policy, list of policies that may be added into the Policy Manual being created VII. Adjournment  MOTION TO ADJOURN: Koby Schellenger; 2nd Adam BellCorelli  CARRIED: Approved unanimously  Meeting adjourned at 6:27pm Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us LONG RANGE FINANCE COMMITTEE AGENDA April 3, 2024 5:15 PM To Whom It May Concern: PLEASE NOTE the City of Oshkosh Long Range Finance Committee will meet on Wednesday, April 3rd, at 5:15 pm, in Room 404 at the Oshkosh City Hall, 215 Church Avenue. ROLL CALL I. Citizen Input - (Up to the first 15 minutes of meeting – can be regarding any City Finance topic) II. Approval of February 7, 2024 Minutes III. Special Assessment Policy- Continued Discussion IV. Capitalized Fixed Asset Policy A. Discussion minor changes to description V. Update on Policy Manual VI. Next Meeting Date & Agenda Items – June 5, 2024 A. Tax Increment Finance District (TIF) Closure Policy B. Update from GoEDC VII. Adjournment If you have any questions, please call the Finance Office at (920) 236-5005 between 8:00 am – 4:30 pm Monday – Friday. Updated for April 3, 2024 Meeting SUBJECT: CAPITALIZED FIXED ASSET POLICY General: To establish a general policy for Capitalized Fixed Assets including standards for valuation of assets with a useful life greater than one-year. Objectives: A. The City’s Record of Capital Assets shall include general fixed assets, i.e., non- infrastructure assets. Infrastructure assets are assets that are immovable and of value only to the City government, e.g., buildings, sewers, and streets. As a general rule, “capitalized” items maintained within the City’s Record of Capital Assets shall have an expected useful life greater than one year and a purchase, donated or assessed value equal to or greater than $5,000. For computer equipment, initial operating software shall be included but subsequent operating software and application software shall be excluded. B. Major costs subsequent to the acquisition of the asset should be classified as either an improvement or maintenance. Improvements lengthen useful life or increase service capacity (effectiveness or efficiency) and are capitalized. Maintenance retains the asset’s value and keeps the asset in normal working condition, thus is expensed. C. Asset Valuation Departments shall record long-term assets at historic cost or, if the cost is not readily determined, at estimated historic cost. Cost shall include applicable ancillary costs. All costs shall be documented, including methods and sources used to establish any estimated costs. 1. Purchased Assets – the recording of purchased assets shall be made on the basis of actual costs, including all ancillary costs, based on vendor invoice or other supporting documentation. 2. Salvage Value – the recording of purchased assets that are expected to be sold at retirement should be recorded with the historical estimated sale value if in excess of $5,000.00. If sale value is less than $5,000.00, normal depreciation for the useful life will be used. 3. Self-Constructed Assets – All direct costs (including labor) associated with the construction project shall be included in establishing a self-constructed asset valuation. If a department is unable to specifically identify all direct costs an estimate of the direct cost is acceptable, but must be supported by a reasonable methodology. 4. Donated Assets – Fixed assets acquired by gift, donation or payment of a nominal sum not reflective of the asset’s market value shall be assigned cost equal to the fair market value at the time of acquisition. 5. Leased Property - Capital lease property should be recorded as an asset and depreciated as though it had been purchased. 6. Dedicated Assets – Required installation by Developer of public improvements, including but not limited to sanitary service mains, manholes, laterals and all appurtenances, water mains, laterals, hydrants, valves and all appurtenances, storm sewers, storm water management measures, streets, curb and gutter, street lights, street signs, sidewalks will be dedicated to the City upon completion. Recording of infrastructure assets will be made on the basis of actual costs, including all ancillary costs, based on vendor invoice or other supporting documentation provided by the Developer. 1. Capital Outlay – Individual items with minimum value/cost of at least $5,000 AND life greater than one year. 2. Capital Project – Individual items with minimum value/cost of at least $10,000 AND has expected life of at least ten years. NEW OBJECT#OBJECT DESCRIPTION DEFINITIONS/VENDORS 7202 Office Equipment Desks, Chairs, Cubicles, Toughbooks, Filing Cabinets, Telephones, GIS Equipment 7204 Machinery & Equipment Excavators, Skid steers, Mowers, Turnout Gear, Fire Hose, Generators, Equipment Attachments 7210 Motor Vehicles - Licensed & Road Ready Vehicle to include all specialty modifications to be put into service and road ready. Include registration, licensing, and equipment needed for modifications. 7212 Radios - Emergency Communication Equipment Two-way Radios 7214 Buildings & Building Improvements Building Definition: A building is a structure that is permanently attached to the land, has a roof, is partially or completely enclosed by walls and is not intended to be transportable or moveable. Buildings that are ancillary to the state’s highway network, such as rest area facilities and toll buildings, are reported as infrastructure rather than as buildings. Building Improvement Definition: Building improvements are capital events that materially extend the useful life of a building or increase its value, or both. A building improvement should be capitalized and recorded as an addition of value to the existing building if the expenditure meets the capitalization threshold. 7216 Land & Land Improvements Land Definition: Land is the surface or crust of the earth that can be used to support structures and may be used to grow crops, grass, shrubs and trees. Land is characterized as having an unlimited (indefinite) life. Land Improvement Definition: Land improvements consist of site preparation and site improvements (other than buildings) that ready land for its intended use. The costs associated with improvements to land are added to the land value. 7218 Road Improvements Road Improvements: means improvements to existing roads, construction of new roadway improvements and acquisition of land necessary or convenient for the improvement of traffic circulation. 7222 Fine Art Exhibition Museum - Works of art and historical treasures are collections or significant individual items that are owned by a state agency and held for public exhibition, education or research as part of a public service rather than for financial gain. The costs associated with presenting the Exhibition are added to the value. 7230 Computer Software Software/Subscriptions that exceed 12 months and exceeds $5,000 in costs. 7200's OBJECT SERIES Capital Outlay, Capital Project, and Capital Improvement Program Updated for February 7, 2024 Meeting SUBJECT: CAPITALIZED FIXED ASSET POLICY General: To establish a general policy for Capitalized Fixed Assets including standards for valuation of assets with a useful life greater than one-year. Objectives: A. The City’s Record of Capital Assets shall include general fixed assets, i.e., non- infrastructure assets. Infrastructure assets are assets that are immovable and of value only to the City government, e.g., buildings, sewers, and streets. As a general rule, “capitalized” items maintained within the City’s Record of Capital Assets shall have an expected useful life greater than one year and a purchase, donated or assessed value equal to or greater than $5,000. For computer equipment, initial operating software shall be included but subsequent operating software and application software shall be excluded. B. Generally, repairs will not qualify for changing the initial capitalized value. Only major replacements of components and/or additions, which significantly change the initial capitalized value or significantly extend the expected useful life of any capitalized item shall be considered in order to substantiate any subsequent year value change of an asset maintained within the City’s Record of Capital Assets. C. Asset Valuation Departments shall record long-term assets at historic cost or, if the cost is not readily determined, at estimated historic cost. Cost shall include applicable ancillary costs. All costs shall be documented, including methods and sources used to establish any estimated costs. 1. Purchased Assets – the recording of purchased assets shall be made on the basis of actual costs, including all ancillary costs, based on vendor invoice or other supporting documentation. 2. Salvage Value – the recording of purchased assets that are expected to be sold at retirement should be recorded with the historical estimated sale value if in excess of $5,000.00. If sale value is less than $5,000.00, normal depreciation for the useful life will be used. 3. Self-Constructed Assets – All direct costs (including labor) associated with the construction project shall be included in establishing a self-constructed asset valuation. If a department is unable to specifically identify all direct costs an estimate of the direct cost is acceptable, but must be supported by a reasonable methodology. 4. Donated Assets – Fixed assets acquired by gift, donation or payment of a nominal sum not reflective of the asset’s market value shall be assigned cost equal to the fair market value at the time of acquisition. 5. Leased Property - Capital lease property should be recorded as an asset and depreciated as though it had been purchased. 6. Dedicated Assets – Required installation by Developer of public improvements, including but not limited to sanitary service mains, manholes, laterals and all appurtenances, water mains, laterals, hydrants, valves and all appurtenances, storm sewers, storm water management measures, streets, curb and gutter, street lights, street signs, sidewalks will be dedicated to the City upon completion. Recording of infrastructure assets will be made on the basis of actual costs, including all ancillary costs, based on vendor invoice or other supporting documentation provided by the Developer. 1. Capital Outlay – Individual items with minimum value/cost of at least $5,000 AND life greater than one year. 2. Capital Project – Individual items with minimum value/cost of at least $10,000 AND has expected life of at least ten years. NEW OBJECT#OBJECT DESCRIPTION DEFINITIONS/VENDORS 7202 Office Equipment Desks, Chairs, Cubicles, Toughbooks, Filing Cabinets, Telephones, GIS Equipment 7204 Machinery & Equipment Excavators, Skid steers, Mowers, Turnout Gear, Fire Hose, Generators, Equipment Attachments 7210 Motor Vehicles - Licensed & Road Ready Vehicle to include all specialty modifications to be put into service and road ready. Include registration, licensing, and equipment needed for modifications. 7212 Radios - Emergency Communication Equipment Two-way Radios 7214 Buildings & Building Improvements Building Definition: A building is a structure that is permanently attached to the land, has a roof, is partially or completely enclosed by walls and is not intended to be transportable or moveable. Buildings that are ancillary to the state’s highway network, such as rest area facilities and toll buildings, are reported as infrastructure rather than as buildings. Building Improvement Definition: Building improvements are capital events that materially extend the useful life of a building or increase its value, or both. A building improvement should be capitalized and recorded as an addition of value to the existing building if the expenditure meets the capitalization threshold. 7216 Land & Land Improvements Land Definition: Land is the surface or crust of the earth that can be used to support structures and may be used to grow crops, grass, shrubs and trees. Land is characterized as having an unlimited (indefinite) life. Land Improvement Definition: Land improvements consist of site preparation and site improvements (other than buildings) that ready land for its intended use. The costs associated with improvements to land are added to the land value. 7218 Road Improvements Road Improvements: means improvements to existing roads, construction of new roadway improvements and acquisition of land necessary or convenient for the improvement of traffic circulation. 7222 Fine Art Exhibition Museum - Works of art and historical treasures are collections or significant individual items that are owned by a state agency and held for public exhibition, education or research as part of a public service rather than for financial gain. The costs associated with presenting the Exhibition are added to the value. 7230 Computer Software Software/Subscriptions that exceed 12 months and exceeds $5,000 in costs. 7200's OBJECT SERIES Capital Outlay, Capital Project, and Capital Improvement Program