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