HomeMy WebLinkAboutResolution 2007-044 adopting financial and budgetary policies and guidelines
MARANA RESOLUTION NO. 2007-44
RELATING TO BUDGET; ADOPTING FINANCIAL AND BUDGETARY POLICIES AND
GUIDELINES.
WHEREAS, the establishment of sound financial and budgetary policies and guidelines
provide the conceptual framework necessary for the development of a sound budgetary
document and overall financial plan; and
WHEREAS, these policies and guidelines are part of an effective internal control
framework; and
WHEREAS, the Government Finance Officers Association (GFOA) recommends that
financial and budgetary policies be developed by the Town's professional staff and be formally
adopted by the jurisdiction's governing board.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of
Marana, Arizona, that the financial and budgetary policies and guidelines attached as Exhibit A
are hereby adopted by the Town Council.
BE IT FURTHER RESOLVED that the Town's Manager and staff are hereby directed
and authorized to undertake all other and further tasks required or beneficial to carry out the
terms, obligations and objectives of the aforementioned policies and guidelines.
PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona,
this 20th day of March, 2007. . ... b.f.1):.~r.'i! 1..".'~ &l ~
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Financial and Budgetary Policies and Guidelines
Sound financial, budgetary and economic principles are part of creating a solid financial plan. Marana's budget
incorporates the following long-term and short-term financial policies and guidelines.
Revenues
. New ongoing operating costs will be funded with permanent, ongoing revenue sources; one-time
operating costs are tied to one-time revenue sources to ensure fund balance integrity.
. Evaluation of rates, fees and charges for appropriate recovery rates based on the purpose of the
fee or charge will occur annually.
. Enterprise fund revenues in total will provide for each enterprise to be financially self sustaining.
. National and local economic indicators, such as population growth, personal income growth,
inflation, business growth, and unemployment will be evaluated regularly.
Reserve Policies
. Fund balance reserves for the General Fund and Enterprise Funds shall be maintained at a
minimum of 25% of the estimated revenues for the budget year.
. Fund balance reserves in excess of 25%, if any, will be evaluated on an annual basis to provide a
source of funding for major projects or acquisitions.
. Appropriation of a minimum contingency/reserve will be included in the budget to provide for
emergencies and potential economic downturns.
Capital PlanninQ
. A Capital Improvement Plan (CIP) shall be developed for a five-year period to allow for
appropriate planning.
. Capital improvements included in the CIP are those projects that;
o Cost $100,000 or more and;
o Have a projected minimum useful life of five years.
. The CIP shall be reviewed and updated annually.
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Capital Plannina (concluded)
. Capital projects should:
o Support Town Council goals and objectives and be consistent with the Town of Marana's
General Plan.
o Prevent the deterioration of the Town's existing infrastructure and protect its investments in
parks, streets, buildings and utilities.
o Encourage and sustain economic development in Marana.
o Respond to and anticipate future growth in the Town.
o Increase the efficiency and productivity of Town operations.
. When possible, capital projects constructed in response to residential or commercial development
should be financed through growth in the tax base or development fees.
. Where appropriate, capital projects should take maximum advantage of improvements and/or
funding provided by other units of government.
. The impact of capital projects on the operating budget always is an important consideration when
evaluating projects for inclusion in the CIP.
. The Capital Improvement Plan must satisfactorily address all legal and financial limitations and
maintain the Town's favorable investment ratings.
. Major changes to the CIP should be evaluated through the CIP process and approved by the
Town Council.
Debt Manaaement
. Long term debt shall not be issued to finance operations.
. Short term borrowing or lease purchase contacts should only be considered for financing major
operating capital equipment when it is determined to be in the Town's best financial interest.
Budaet Control
. Estimated budgets for all departments, including contribution driven programs will be submitted
by each department to ensure adequate appropriation each year.
. Mid-year budget adjustments will be kept to a minimum to minimize the impact on future budgets.
. All departments are responsible for ensuring that expenditures do not exceed their approved
budget.
. Transfer of general fund contingency appropriation requires Town Council approval. All other
transfers of require Town Manager or designee approval in accordance with established policies.
. If unexpected resources are secured after budget adoption, departments must check with
Finance for direction prior to making any expenditure of the funds.
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