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Operating Budget Polices <br />Page 2 <br />The City has become more dependent on local government aid in <br />recent years as the state has controlled local levies and <br />replaced them with increased local government aid. This has <br />replaced a more stable revenue source (property taxes) with a <br />less stable one. One way to deal with this instability is to <br />develop a budget reserve that can be used if local government aid <br />is significantly reduced without adequate notice. <br />The City will maintain a budgetary control system to ensure <br />adherence to the budget. <br />. The Finance Department will prepare regular reports <br />comparing actual expenditures to budgeted amounts as <br />part of the budgetary control system. <br />Department heads shall be primarily responsible for <br />maintaining expenditures within approved budget guide- <br />lines, consistent with approved financial policies. <br />IMPLEMENTATION <br />1. The 1990 Budget allocates administrative and general govern- <br />ment costs to all revenue generating departments and funds. <br />These charges result in a transfer of revenue to the general <br />fund operating budget. <br />2. The transfer of Public Works overhead expenses related to <br />street construction projects, from a special assessment fund <br />to the general fund, has been changed from a funding source <br />for operating expenses to a fundinq source for capital expen- <br />ditures. <br />3. The following budget compliance graph shows the actual expen- <br />ditures have not exceeded budgeted expenditures during the <br />past ten years. <br />BUDGET COMPLIANCE <br />GENERAL AND SPECIAL REVENUE FUNDS <br />Mlllfon� <br />aa - <br />$6 - <br />.� x� <br />� `" � : � <br />� `'� Y� `� <br />. . � � � <br />:, <br />� SUD6ET � ACTUAL <br />_' "J <br />