HomeMy WebLinkAbout411 - Fiscal Impact Statements CITY OF REDDING, CALIFORNIA
COUNCIL POLICY•
SUBJECT RESOLUTION POLICY EFFECTIVE PAGE
NUMBER NUMBER DATE
FISCAL IMPACT STATEMENTS
92-50 411 2/04/92 1
BACKGROUND
Many actions taken by the City government have a fiscal impact,
either positive or negative , and yet these impacts have not in
the past always been formally evaluated. Projects may be under-
taken , commissions established, studies assigned to staff , and
workload otherwise affected without an attempt to measure the
effect such action may have on the City financially. While this
is not atypical of cities -- and governments generally -- a more
responsible posture, generating greater accountability to the
public we serve, would be to require more measurement or estimate
of financial impact of every major action we take or consider.
PURPOSE
The purpose of this policy is to ensure a higher level of respon-
sibility, accountability, and fiscal integrity for the City
government by requiring a fiscal impact statement to accompany
• every major proposal considered by the City Council .
POLICY
It is the policy of the Redding City Council to require the
preparation of a fiscal impact statement to accompany every major
proposal to be considered by the City Council . Affected by this
policy would be:
a . The best available estimate of the capital outlay cost of
projects;
b . The best available estimate of operating costs of capital
projects , extended over ten years ;
c . The operating cost (and revenues) of newly proposed programs;
d. The cost of servicing commissions ;
e . Estimates of the cost of employee compensation packages being
negotiated or otherwise considered, including benefits ;
f. Operating costs (and realistic labor savings , if anticipated)
of equipment proposed for acquisition.
• PROCEDURE
No prescribed and uniform format of such statements will fit all
situations , and so none is prescribed. The form of the statement
CR 0049
CITY OF REDDING, CALIFORNIA
COUNCIL POLICY
• SUBJECT RESOLUTION POLICY EFFECTIVE ' PAGE
NUMBER NUMBER DATE
FISCAL IMPACT STATEMENTS •
92-50 411 2/04/92 2
should be tailored, however, to provide the City Council with the
basic information necessary to reach a sound decision .
It is anticipated that during the transitional period (the first
year or two this policy is in effect) , the City Council will be
evaluating currently-existing programs with the objective of
determining areas in which program costs that have developed over
the years may no longer be justified.
•
CR 00N9