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City of <br />�� <br />���� <br />Minnesota, USA <br />Operating Budget Policy <br />SL <br />�'` Purpose <br />i <br />5� The purpose of the City's Operating Budget Policy is to ensure that the City's annual operating <br />5� expenditures are based on a stable stream of revenues. The policies are designed to encourage a <br />�� lang-term perspective to avoid pursuing short-term benefits at the expe�se of future i� <br />�� �'s`�. The intent of this policy � is t� �k enable a s»�tainahle ���Tr� level of services, <br />5� expenditures, and property tax levies. <br />�� <br />�'� <br />� <br />�� <br />6� <br />�r3 <br />� <br />�� <br />6�r <br />6�' <br />6� <br />b� <br />�� <br />�] <br />�� <br />�� <br />�� <br />�� <br />�� <br />7r <br />'�$ <br />`�9 <br />$� <br />�� <br />�' <br />5����� <br />This � policy fes a.���ies � most critically to those programs funded through the property tax, <br />�-•••�� � � � ��•� � � �; ••� �y�� � � ���u�t �� ��aT�:� fluctuations in this revenue source can have substantial <br />impacts. <br />�«! i::�' <br />� The City will pay for all current expenditures with current revenues. The City will <br />avoid budgetary procedures that balance current expenditures at the expense of ineeting <br />future years' expenses. Specifically, accruing future year's revenues shall be prohibited. <br />Practices to be avoided include postponing expenditures, rolling over short-term debt, <br />and using reserves to balance the operating budget <br />� Comment � Coni�^ary to this policy, the City has relied on the use of <br />reserves to plug the budget gap in 3 of the last 4 annual budget years <br />Q The budget will provide for adequate maintenance of capital plant and equipment, and <br />for their orderly replacement <br />�� Comment '� Contrary to this policy, the City does NOT have the <br />necessary funding mechanisms in place to replace �r�? City assets at the <br />end of thei� useful lives. This has necessitated replacementdeferrals and <br />a general reliance on one-time monies <br />�3 !] A proportionate share of the administrative and general government costs incurred by <br />�� the general operating fund of the City shall be borne by all funds as is practicable. Such <br />� S administrative charges shall be predetermined and budgeted annually <br />R �r <br />�� �i New programs or proposals shall be reviewed in detail by City staff and both a policy <br />�� and fiscal analysis shall be prepared prior to budgetary inclusion, and provided to the <br />$� City Council for � review <br />q�} <br />9] � 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 />�� <br />� <br />