2004 Performance Based Budget - Laserfiche WebLink

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FINANCIAL POLICY STATEMENTS Budgetary and Operating Policies 1) The City will adhere to all Federal, State and local legal requirements pertaining to the operating budget. 2) The City will employ a structured budget preparation and formulation process that will be used by all entities receiving funding from the City. The process employed will ensure adequate citizen input and participation culminating with the public hearings held prior to City Council adoption of the budget. 3) The City will maintain a budgetary control system (along with an encumbrance control system) to ensure adherence to the budget. 4) Essential services will receive first priority for funding. The City will attempt to maintain current service levels for all essential services. The City will identify low priority services for reduction or elimination, if necessary, before essential services are affected. 5) The City will consider the establishment of new user fees or increases in existing fees as an alternative to service reduction or elimination. 6) The City will continue to develop and implement amulti-year plan for capital improvement. 7) The City will pay for all current expenditures with current revenues. Long-term debt and year-end undesignated fund balances will not be used for funding current expenditures. 8) The City will avoid budgetary procedures that balance current expenditures at the expense of meeting future years' expenses, such as postponing necessary expenditures, accruing future years' revenues or rolling over short-term debt. 9) The budget will provide for adequate maintenance of capital plant and equipment and for their orderly replacement. The budget will provide sufficient funding to cover annual debt retirement costs. The City will consider technological and capital investment programs which are cost effective and which will reduce operating costs as high funding priorities. The City will employ a structured expenditure and revenue forecasting system to allow for effective financial planning on a multi-year basis. The utilization of the general operating fund undesignated fund balance as an operating A-10