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 To create a policy document for staff and Council members to refer to during financial planning, budget preparation, and other financial management issues. II. REVENUE MANAGEMENT It is essential to manage the City’s revenue sources to provide maximum service value to the community. Certain revenue sources, such as intergovernmental proceeds (LGA and other state aids) are outside of direct City control and are consequently unaddressed by this policy. This policy establishes guidance for the two major sources of City revenue: property taxes and fees/charges. Property Taxes: The property tax levy is the funding source for the gap between the cost of services and other city revenues. The costs of City services, as annually defined and approved by the City Council will be funded first by the City revenues and then by property tax levy. Baseline parameters for determining the property tax levy include:  Maintain current level of City Services  Long‐term protection of the City’s infrastructure.  Meeting legal mandates imposed by outside agencies.  Maintaining adequate fund balance and reserve funds sufficient to maintain or improve the City’s bond rating. Other Factors which can impact the annual Property tax levy included but are limited to the following criteria:  A clear expression of community expectation.  The existence of community partnerships willing to share resources or cost. Service Fees and Charges: The City will establish service fees and charges wherever appropriate and to fairly allocate the full cost of services to the users of those services. Specifically, the City will:  Establish utility rates sufficient to fund both the operating costs and the replacement of capital equipment items, plus maintain an adequate level of working capital. 73