09-26-2007 Council Agenda - Laserfiche WebLink

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IV. Budgetary and Financial Control Policies Budgetary Purpose: The City's operating budgets establish annual plans for funding the costs of municipal programs and services. The operating budgets are comprised of the General, Special Revenue, and Debt Service Funds. Budgeting policies are designed to promote a long -term perspective required to maintain a constant level of services by ensuring stable revenues and an efficient allocation of those revenues among City services. Because the operating budgets provide the foundation for policy decisions about the level of services to be provided and the cost of government, the process to develop and implement the operating budgets provide for public input and review. Operating Budget Policy: Department Directors will be responsible for administration of their respective Department Budgets and are to submit requests for any required budget adjustments, such as supplemental appropriations, to the Finance Director or the City Administrator before the program incurs cost overruns for the annual budget period. a. Department Directors will be permitted to spend budgeted departmental funds without City Administrator approval. b. The City Administrator will be permitted to spend City funds up to $1,000 without Council approval. The following considerations and procedures will be used to comply with this policy: • Proper care in management of funds lies with the manager responsible for approving expenditures. Such management includes, but is not limited to, reviewing expenditures before authorization, reviewing financial reports to detect errors and assess progress, and staying within expenditure budget authorization. All costs incurred must be reasonable and necessary. Any obligation incurred by any person in the employ of the City for any purpose not authorized in the budget resolution or for any amount in excess of the amount therein authorized may be deemed be a personal obligation of the person incurring the expenditure. • The City will not use short-term borrowing, internal or external, to balance the budget for any fund except to provide for a capital need in one fund and an investment opportunity for another fund. • The City will not sell assets or use one -time accounting principle changes to balance the budget for any fund, except as approved by the City Council. • City staff will make a general effort to obtain the lowest overall price for the best product or service. • The City will televise all Budget meetings and workshops each year, including the required Truth in Taxation Hearing. • The operating budgets will provide for all current expenditures with current revenues, matching ongoing operating expenses with the appropriate source of ongoing revenues. The City's annual General Fund operating budget will be balanced so that current 4