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HomeMy WebLinkAboutReso 2008-035 - Council Policies . . RESOLUTION NO. 2008 - 35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING COUNCIL POLICY 402 (GENERAL BUDGET GOALS); 403 (BUDGET FINANCING GOALS); 404 (BUDGET SERVICE LEVEL GOALS); 405 (ADOPTION OF THE . ANNUAL BUDGET); 406 (BUDGET AMENDMENTS POLICY); 409 (REBUDGET OF PRIOR YEAR APPROPRIATIONS); AND 412 (ESTABLISHMENT OF UNRESERVED FUND BALANCE). WHEREAS, the City of Redding established City Council Policies 402 (General Budget Goals), 403 (Budget Financing Goals), 404 (Budget Service Level Goals), 405 (Adoption ofthe Annual Budget), and 406 (Budget Amendments Policy) on April 3, 1990; City Council Policy 409 (Rebudget of Prior Year Appropriations) on July 16, 1991; and City Council Policy 412 (Establishment of Unreserved Fund Balance) on March 17, 1992; and, WHEREAS, the City of Redding has been using a biennial budget rather than an annual budget for several years and several of the City Council's policies (Policies 402, 403, 404, 405, 406 and 409) concerning annual budget processes have never been updated to reflect these biennial budget procedures; and, WHEREAS, the City of Redding's City Council's policy concerning the unreserved fund balance (Policy 412) has never been updated to reflect the City's long-range financial planning process; and, WHEREAS, the amended policy will reflect the City Council's previous direction to maintain a five percent unreserved cash balance at year-end throughout the long-range financial plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding that City Council Policies 402 (General Budget Goals), 403 (Budget Financing Goals), 404 (Budget Service Level Goals), 405 (Adoption of the Annual Budget), 406 (Budget Amendments Policy); 409 (Rebudget of Prior Year Appropriations) and 412 (Establishment of Unreserved Fund Balance) are hereby amended as attached. I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular meeting of the City Council on the 15th day of April, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCII.:MEMBERS: Bosetti, Dickerson, Jones, Murray, and Stegall None None None - , "":" 1 \ ," V -,-'" '-;'.~- .... .C',..:. \ r~ I: '. _ " - ......... ~ ~ , . , .' '- ":' ...... -'-, ~ - . Attest: .;...: :- -~~ - . ~ii~~~~~ Form Approved: RIC~~~Attorney ~ D() ~ 0...; . . ~ ... . '" . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE GENERAL BUDGET GOALS 90-160 402 04/03/90 I BACKGROUND The City of Redding maintains an f.nnuol Budget for Operating, Debt Service, and Capital Improvements in accordance with the laws of the State of California. PURPOSE To establish purposes for utilizing an Annuol Budget, as follows: I. Maintain the fiscal integrity of the City' s operating, debt service, and capital improvement budgets in order to provide services and to construct and maintain public facilities, streets, and utilities. 2. Maintain a responsible and prudent fiscal condition and high bond rating to minimize long-term interest expense when financing capital improvements with an ongoing, systematic bonding program. 3. Prepare and onnuolly refine written goals and policies to facilitate preparation of financing, spending, and performance plans for the City. 4. Coordinate decision-making for the capital improvement budget with the operating budget to make effective use of the City's limited resources for operating and maintaining facilities. 5. Prepare budget data for elected officials in a form that will facilitate onnuol budget decisions. 6. Prepare and evaluate activity performance plans that relate to financing iUld spending plans in the onnuol City budget. . 7. Encourage citizen involvement in the onnuol budget decision-making process through public hearings and informal meetings. POLICY The City will adhere to purposes stated for utilizing an Annuol Budget. PROCEDURE Specific procedures to achieve the purposes stated above are provided in the City of Redding Budget Policies and Procedures Manual. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECf RESOLUTION NUMBER POLICY NUMBER EFFECfIVE DATE PAGE BUDGET FINANCING GOALS 90-160 403 04/03/90 1 BACKGROUND To develop aB ).BBUIlI Budget, several specific assumptions need to be stated to facilitate the financing of the ABBUIlI Budget. PuRPOSE To establish the fmancing assumptions for the development of the Budget. POLICY It is the policy of the City Council of the City of Redding: I. To finance essential City services which have a city-wide benefit in the budget with revenue sources which are generated from a broad base (i.e., property taxes, State and Federal Aid, assessments, and franchise fees); finance responsive services with dedicated revenue and user fees which directly relate to the level of service provided; and minimize General Fund financing assistance to those responsive service activities which have a common-good community benefit but cannot totally finance expenses with user fees. 2. To minimize the need for property tax financing by controlling costs and by seeking alternative financing for City services which focus on user fees for responsive services and by the upgrading and/or enhancement of the property tax base. 3. To refine exiting assessment financing formulas and user fee rate structures to more accurately charge the costs of service provided to the benefitting property owners and customers served. 4. To support Federal and State legislation that provides property tax relief and direct aid to cities, without reliance on regressive forms of taxation, while striving to eliminate funding of regional and State responsibilities at the local level. Oppose legislation which imposes local service mandates without Federal, State, or regional funding. 5. To direct resources to finance services provided by the City and to minimize support for services primarily and appropriately financed by other levels of government. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 I BACKGROUND To develop an .~.nnllRI Budget, several specific assumptions need to be stated to facilitate the budget development process. PURPOSE To facilitate the budget development process by establishing base-level procedures for the development of the Budget. POLICY It is the policy of the City Council of the City of Redding: 1. That budget decisions to increase service levels or add a new program will be financed with either a new revenue source, rate adjustment, or by a deliberate reduction in, or elimination of, existing servICes. 2. That decisions to reduce service levels or eliminate programs will be based on city-wide priorities and needs when revenue sources are inadequate to maintain existing services at current program levels. 3. To maintain programming flexibility to address priority user needs based on historical usage and demographic trends within service areas, if a service is provided at many facilities throughout the city and a service-level reduction is necessary. 4. To incorporate self-reliance in both day-to-day operation of the City and the development of its long- range plans. A self-reliant City makes greater use of its own resources, takes care of its own, and creates its own opportunities for a better life. More specifically, "self-reliance" should: o Encourage community involvement; o Foster economic development to enhance the tax base and retain and create employment opportunities; o Strengthen our neighborhoods through service delivery and cooperation with neighborhood groups; and o Strengthen City government as an organization dedicated to serving the people of Redding. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE BUDGET SERVICE LEVEL GOALS 90-160 404 04/03/90 - L 5. To avoid duplication of services with other units of government and seek joint-use opportunities for public facilities with both governmental units and non-profit organizations when effective service delivery can be provided at less cost or no cost to the City. 6. To recognize that City employees are City government's most valuable asset and that, as such, their concerns, participation, and morale are crucial to delivering high quality, efficient services to the residents and taxpayers of Redding. 7. To employ good management practices when planning for service delivery by including in budget requests money to pursue activities, such as: o Office automation and computer applications that increase productivity; o Equipment modernization; o Work-hour simplification; o Risk management/employee safety; o Preventative maintenance; o Energy conservation; o Life-cycle costing and purchasing of equipment; o Lease-purchase options for high-cost equipment purchases which reduce operating expenses; o Performance planning, reporting, and evaluation; o Employee training; and o Competitive bidding for services. 8. To modernize the physical and organizational structure of the City departments and offices to facilitate better management of resources. Create an environment which encourages innovateive problem-solving and pursuit of opportunities to improve service delivery within existing budgets. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECf RESOLUTION NUMBER POLICY NUMBER EFFECfIVE DATE PAGE ADOPTION OF THE BIENNIAL .^.NNU.^.L BUDGET 90-160 405 04/03/90 I BACKGROUND In accordance with State Law, the City has no legal obligation to adopt a comprehensive fmancial plan. However, good business practice and sound fmancial prudence would indicate that the City of Redding adopt a comprehensive financial plan on flfI anHHal at least a biennial basis. The comprehensive financial plan for the City of Redding is composed of spending, financing, and performance plans for three types of budgets: operating, debt service, and capital improvement. All budgets must be sound: the spending plan (expenditures and transfers out) must equal or be less than the fmancing plan (revenues, transfers in, and use of fund balance). PURPOSE To establish an annHal biennial comprehensive financial plan. POLICY It is the policy of the City Council of the City of Redding: That the City Manager shall propose to City Council at the fimt reglllar City CeHReil metiRg iR JHRe least every other year prior to the beginning of the fiscal year a comprehensive financial plan for the next fiscal year or two fiscal years (July I to June 30). After considering the City Manager's recommendations, the Mayor and City Council shall adopt the ar.nHal budget. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE BUDGET AMENDMENTS POLICY 90-160 406 04/03/90 I BACKGROUND From time to time, the ARmlal Budget may need adjustment to respond or meet changing conditions or circumstances. This is accomplished by amending the Budget, either administratively by the City Manager or by the City Council upon the recommendation of the City Manager. PURPOSE To amend the f~-Jlllal Budget as may be required during the fiscal year. POLICY It is the policy of the City Council of the City of Redding: I. Budgeted appropriations may be increased, decreased, or have the purpose for which they are provided changed by Council resolution. 2. The City Manager may move by appropriation transfer part or all of any unencumbered appropriation balance within a department, agency, or authority. Upon the recommendation of the City Manager, Council may by resolution transfer part or all of any unencumbered appropriation balance from one department, agency, or authority to another. 3. If the City Manager reports to Council that the revenue available will be insufficient to meet the amount appropriated, the Mayor and City Council shall take such actions as they deem necessary to prevent or minimize any deficit, and for that purpose they may reduce by resolution one or more appropriations. . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE REBUDGET OF PIDORYEAR APPROPRlA nONS 91-275 409 07/16/91 1 BACKGROUND The City of Redding adopts aR l ~"1ffiIal Budget at the beginning of each fiscal year budget cycle. Certain items budgeted in the prior year are rebudgeted as a carryover. These items are difficult to identifY for numerous reasons, and each year a certain number are overlooked in the budget process. This policy would authorize the City Manager to routinely carry over items previously approved, but not rebudgeted. PURPOSE This policy would authorize the City Manager to rebudget previously approved and budgeted items in accordance with Council guidelines. POLICY It is the policy of the City Council of the City of Redding to authorize the City Manager to rebudget certain items as follows: 1. The item(s) was previously considered and budgeted by Council Resolution. 2. The item( s) was not rebudgeted through the adoption of the l.nnual Budget or by Exhibit A of the Resolution adopting the ,^.llfl\IaI Budget. 3. The amount of the appropriation does not change, nor does the amount of the funding source change. 4. There is no impact upon fund reserves. 5. The purpose for which the item(s) was rebudgeted does not change. In the event the item(s) does not meet these conditions, it must be approved by the City Council and may not be rebudgeted as part of this policy. PROCEDURE The procedure for utilizing the Rebudget of Prior Year Appropriations is provided in the City of Redding Budget Policies and Procedures Manual. . . . CITY OF REDDING, CALIFORNIA COUNCIL POLICY SUBJECT RESOLUTION NUMBER PoLICY NUMBER EFFECTIVE DATE PAGE ESTABLISHMENT OF LONG-RANGE FINANCIAL PLANS AND UNRESERVED CASH BALANCE 92-110 412 03/17/92 I BACKGROUND Fiscal stability is an important factor to any city. The budget decisions made today will have an impact on the City's future in not only what is accomplished, but what resources are available in the future. Being concerned with only making ends meet this year, with little planning about what the future will hold is shortsighted. Many govemments become too shortsighted with their budget process, which causes crisis for them down the road. The decisions made today could have a profound impact on the City's future. PURPOSE Just as a city must look ahead at land use needs, it must also forecast its financial needs in order to avoid serious deficiencies or over-commitments to programs and projects. Establishing a long-range financial plan and minimum reserve levels will assist in accomplishing the City's goal and objectives and provide for orderly provisions of services to the citizens of Redding. POLICY It is the policy of the City Council of the City of Redding: I. To prepare long-range fmancial plans for each of the City's major funds and update those plans at least biennially. 2. To maintain at a minimum an estimated five percent of projected expenditures unreserved cash balance at year end throughout the long-range financial plan. 3. When approval of additional appropriations is requested of Council the effect on the long-range financial plan should be considered. 4. A requested appropriation that would cause the estimated end of year cash reserve in any year of the long-range financial plan to drop below five percent needs to be submitted with a plan to insure the fiscal stability of the major fund's financial position. 5. During the budget process, the City Council will evaluate the cash balance to determine if adequate levels of cash are maintained based on the economic conditions of the area or other circumstances.