Financial Management Policies Operating Budget Policies
The City will pay for current expenditures with current revenues and fund balances. The City will avoid budgetary processes that balance current expenditures at the expense of future years.
The budget will provide for the appropriate maintenance and repair of capital assets, and provide for their replacement when needed.
The City will develop its annual budget in a manner that encourages early involvement with the public and City Council.
The City will maintain a system of budgetary control to ensure adherence with the approved budget.
Real‐time financial data, including actual performance compared to budget and prior periods, will be available on‐line for review by departments. Department heads are responsible for managing their budgets within the total appropriation for their departments.
Reserve Policy
The City will maintain a mandatory General Fund reserve of 25% of planned revenue, pursuant to Council Motion Resolution MR‐0075‐2003.
Fund balance in excess of the mandatory General Fund reserve will be utilized strategically at the direction of Council to provide for current and future City needs.
Capital Improvement Planning
The City will develop a five‐year Capital Improvements Plan on an annual basis.
Capital expenses within the City’s annual budget will be determined using the Capital Improvements Plan as a guide.
Debt Management Policies
The City will utilize long‐term debt judiciously, and only for long‐term capital requirements.
The City will develop and adopt a debt policy that outlines the appropriate uses and terms of debt.
The City will provide full disclosure on financial reports and official statements.
Revenue Policies
The City will estimate annual revenues conservatively, objectively and in an analytical manner.
The City will encourage diversification of its revenues; in order to minimize the impact of short‐ run fluctuations in any one revenue source.
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