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Operating Budget Policy Appendix A <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 long-term <br /> perspective to avoid pursuing short-term benefits at the expense of future impacts. The intent of this <br /> policy is to enable a sustainable level of services, expenditures, property tax levies, and other revenue <br /> sources including fee revenue. <br /> Scope <br /> This policy applies most critically to those programs funded through the property tax, as fluctuations in <br /> this revenue source can have substantial impacts. <br /> Policy <br /> D 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 drawing down <br /> reserves beyond targeted levels to balance the operating budget. <br /> D The operating budget will provide for adequate maintenance and periodic replacement of capital <br /> equipment. <br /> D 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 /> D 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 <br /> review <br /> D 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 /> D 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 and department <br /> priorities. <br /> D 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 /> D 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 /> In recognition of industry-recommended budgeting practices, the City has established the following <br /> budget controls: <br /> Page 3 of 15 <br />