03-09-2016 Council Packet - Laserfiche WebLink

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1 City of Little Canada Fiscal Policies I. Introduction The City of Little Canada has established these fiscal policies to provide a framework that guides responsible use of municipal resources and contributes to the City’s overall financial health. These policies apply to all elected and appointed City officials. They are consistent with all state and federal requirements in effect as of December 2006. Statutory and regulatory changes that become effective at a later date will supersede the City’s fiscal policies. The City Council is responsible for adopting and amending statements of purpose and policy. The City Administrator is responsible for implementing the City’s fiscal policies and proposing changes to the policies that the City Council may wish to consider from time to time. The City Administrator is authorized to adopt and amend procedures to implement these fiscal policies adopted by the City Council. It is intended that this document will be revised from time to time. Revision dates will be indicated at the end of each policy. II. Revenue Policies Purpose: The City is committed to managing public revenues in a manner that provides maximum service value to the community and ensures a diversified and stable revenue system. Revenue sources will be matched with appropriate expenditures to ensure adequate long-term resources to fund various municipal programs and services. Additionally, user fees will be designated to the funds they are used to support (i.e. Park charge fees will be designated to the Parkland Acquisition Fund). Any deviation from this policy must be pre- approved by the City Council. Property Tax Policy: Property taxes are the most important source of revenue for both services and capital investment. In managing property taxes, the City will seek a balance between providing an appropriate level of services, maintaining infrastructure, and affordability for residents. The following considerations and procedures will be used to comply with this policy: • Property tax planning shall seek to identify future opportunities such as changes in the tax base, and the impact of levy supported debt. • Forecasting future valuation is an essential element of financial planning, but a difficult task. Taxable property valuation depends on many variables — actual development, statutory tax capacity rates, use of tax increment financing, operation of the fiscal disparities system and County valuations. • The City will seek a balanced tax base through support of a sound mix of residential, commercial, and industrial development. • City planning efforts will be impaired by a lack of local control over the property tax system. Legislative changes in the property tax system and other elements of local