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City of Roseville — 2004 Budget City of Roseville, Minnesota Fiscal Policies The following set of fiscal policies provides a framework to guide the City's budget and financial planning. The policies are separated into three distinct categories: Budget Policies these policies are more typically directly related to budgeting guidelines and specific details. City Operational Policies these policies apply to general directions and methods, which may not be specific to the budget but do have an ultimate impact on the process since the budget is a reflection of the Council's community goals and priorities. Special Program Policies the City may have special programs, which require specific policies not normally covered in the previous categories but have significant impacts on the annual budget. Operating Budget Policy Purpose To ensure the City's annual operating expenditures are based on a stable stream of revenues. The policies are designed to encourage a long -term perspective to avoid pursuing short -term benefits at the expense of future problems. The policies will enable a stable level of services, expenditures, and property tax levies. Scope These policies apply most critically to those programs funded through the property tax, because it is most difficult to deal with fluctuations in this revenue source. Polic ❑ The City will pay for all current expenditures with current revenues. The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' expenses. Specifically, accruing future year's revenues shall be prohibited. Practices to be avoided include postponing expenditures, rolling over short -term debt, and using reserves to balance the operating budget. ❑ The budget will provide for adequate maintenance of capital plant and equipment, and for their orderly replacement. ❑ A proportionate share of the administrative and general government costs incurred by the general operating fund of the City shall be borne by all funds as is practicable. Such administrative charges shall be predetermined and budgeted annually. ❑ New programs or proposals shall be reviewed in detail by City staff and both a policy and fiscal analysis shall be prepared prior to budgetary inclusion, and provided to the City Council for its review. ❑ A request for a program or service expansion or reduction must be supported by an analysis of public policy implications of the change. 105