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Attachment A <br />Operating Budget Policy <br />Purpose <br />The purpose of the City’s Operating Budget Policy is to ensure that the City's annual operating <br />expenditures are based on a stablestream of revenues. The policies are designed to encourage a <br />long-term perspective to avoid pursuing short-term benefits at the expense of futureimpacts. <br />Theintent of this policy is to enable a sustainable level of services, expenditures, and property <br />tax levies. <br />Scope <br />This policy applies most critically to those programs funded through the property tax, as <br />fluctuations in thisrevenue source can have substantial impacts. <br />Policy <br />The City will pay for all current expenditures with current revenues. The City will avoid <br />budgetary procedures that balance current expenditures at the expense of meeting future years' <br />expenses. Specifically, accruing future year's revenues shall be prohibited. Practices to be <br />avoided include postponing expenditures, rolling over short-term debt, and using reserves to <br />balance the operating budget <br />The operating budget will provide for adequate maintenance of capital plant and equipment, and <br />for their orderly replacement. <br />A proportionate share of the administrative and general government costs incurred by the general <br />operating fund of the City shall be borne by all funds as is practicable. Such administrative <br />charges shall be predetermined and budgeted annually <br />New programs or proposals shall be reviewed in detail by City staff and both a policy and fiscal <br />analysis shall be prepared prior to budgetary inclusion, and provided to the City Council for its <br />review <br />A request for a program or service expansion or reduction must be supported by an analysis of <br />public policy implications of the change <br />A request for new personnel must be supported by an analysis demonstrating the need for the <br />position based on workload measures, comparative staffing levels, and City anddepartment <br />priorities <br />A request for purchase of new (additional) capital equipment must be supported by an analysis <br />demonstrating that the value of the benefits of the equipment is greater than the cost of the <br />equipment over its expected life <br />As specified under City Code section 103.05 all general purchases and/or contracts in excess of <br />$5,000 must be separately approved by the Council <br /> <br />