Finance Committee Agenda and Packet 2014 03 17

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Fiscal Policies the City Council. If lease purchasing is approved by Council, the useful life of the 19. Water and sewer capital revenues will not item must be equal to or greater than the be used to pay for operating expenses. length of the lease. No lease purchase will They will be used solely for the water and be approved by City Council beyond a five sewer improvements and system expansion. (5) year lease term. Operating Budget Policies Revenue Policies 20. The City of Louisville will maintain a 12. The City of Louisville will maintain a budgetary control system to help it adhere to diversified revenue system to protect it from the budget. The City will prepare monthly short-run fluctuations in any one revenue status reports and quarterly financial reports source. comparing actual revenues and expenditures to budgeted amounts. Where 13. State and Federal funds may be utilized, but practical, the City will develop performance only when the City can be assured that the measures to be included in the annual total costs and requirements of accepting operating budget. funds are known and judged not to adversely impact the City’s General Fund. 21. The City of Louisville will provide for adequate maintenance of capital plant and 14. The City Council policy is that user charges equipment, and for their orderly will be established so that operating replacement. revenues are at least equal to the direct and indirect operating costs. Indirect costs will 22. The City will strive to pay prevailing market include the cost of annual depreciation of rates of pay to its employees. Prevailing capital assets. market rate is defined to include both salary and fringe benefits. 15. The City of Louisville will set fees for recreational services at a level to support 23. The City of Louisville should not incur an seventy-five percent (75%) of the direct and operating deficit. indirect costs of children’s programs. Non- resident recreation participants will pay the 24. The City will pay for all current expenditures regular program fees plus an additional fee with current revenues. The City’s General of 25% or $5.00, whichever is higher. (As Fund budget will not be balanced through amended March 18, 1997, Resolution No. the use of transfers from other funds, 19)appropriations from fund balances or growth revenue. (As amended January 7, 1986, 16. The City will annually review all fees for Resolution No. 1 and March 18, 1997, licenses, permits, fines, and other Resolution No. 19) miscellaneous charges. They will be adjusted as necessary after considering 25. The City of Louisville will project inflation, processing time, expense to the expenditures for the next five (5) years and City, and any other factors pertinent to the will update these projections annually. specific item. Projections will include estimated operating costs of future capital improvements that are 17. Non-sufficient funds checks will be assessed included in the Capital Improvement a collection charge of fifteen dollars Program budget. ($15.00). The amount of collection charge may be reviewed and changed as deemed 26. Administrative Transfer Fee. The necessary by the Director of Finance. Administrative Transfer Fee is a payment from the utility funds to the General Fund for 18. The City of Louisville will project revenues services provided by the General Fund. The for the next five years and will update this amount of each year’s transfer fee will be projection annually. Each existing and based on the estimated General Fund potential revenue source will be examined expenditures that are utility related. annually. 7