City Council Agenda and Packet 2019 07 16 Budget Retreat

Home Browse Search

SUBJECT: FINANCIAL POLICIES DATE: JULY 16, 2019 PAGE2OF5 The current set of financial policies include an Introduction Section and the following eight Policy Sections: 1. General Policies 2. Reserve Policies 3. Debt Policies 4. Revenue Policies 5. Operating Budget Policies 6. Investment Policies 7. Capital Asset Management Policies 8. Accounting, Auditing, and Financial Reporting Policies POLICY SUMMARY Below is a brief summary of some of the elements within each policy section. Introduction • Contains a list of definitions related to all policy sections. General Policies • Requires a set of financial indicators to be calculated and disclosed in the City's budget documents. Reserve Policies • Defines both minimum and targeted reserve levels for the General Fund and the Open Space & Parks Fund. • Defines minimum reserve levels for the Cemetery Fund, which receives an ongoing subsidy transfer from the General Fund, and the three Enterprise Funds that comprise the Combined Utility Fund. Debt Policies • Discusses factors which may favor "pay-as-you-go" financing and those that may favor "pay -as -you -use" financing. • Discusses and recommends general debt financing structures and methods of sale. • Does not apply to debt issued by the Urban Revitalization District. Revenue Policies • States that the City will value diversification, stabilization, and equity within its revenue structure. • Formalizes the intent to fund all recurring expenditures with recurring revenue and that non -recurring revenue should be used to fund only non -recurring, one-time expenditures. • Sets broad guidelines for setting user fees and charges. CITY COUNCIL COMMUNICATION