Laserfiche WebLink
<br /> <br /> <br /> <br /> <br /> City of Santa Ana <br /> <br /> Council Policy <br /> <br /> Mayor's Authorization <br /> <br /> Subject Council Approval Date: <br /> BUDGET & FINANCIAL POLICIES <br /> <br /> <br /> <br /> <br /> Background <br /> The severity of the recent economic recession highlighted the need to establish and maintain adequate reserve <br /> policies to offset significant economic downturns and unforeseen rising costs more effectively. In 2002, The <br /> Government Finance Officers' Association (GFOA) recommended reserve levels equal to a minimum of 5% to 15% <br /> of operating revenues or one to two months of operating expenditures as a basis to establish sound reserve <br /> levels. Adoption of a formal City Budget and Reserve Policy will provide a basis to manage significant financial <br /> events more effectively in the future. <br /> <br /> PURPOSE <br /> The City's reserve policy will define the recommended level for reserves for the General Fund as well as internal <br /> and enterprise operations. The policy will outline a timeframe and plan that will assist the City in meeting the <br /> minimum General Fund requirements over the course of the next few years. It will also establish criteria for the <br /> use of reserves and establish a process by which to replenish reserves if used. It is the intent to focus on the <br /> General Fund initially and incorporate additional reserve policies for internal and enterprise funds over the next <br /> fiscal year. <br /> General Fund <br /> <br /> <br /> The General Fund is the general operating fund for the City. It accounts for all general revenues including sales <br /> tax, property tax, business tax, hotel visitor's tax, as well as other fees and charges. It is the basis to fund general <br /> ongoing City operations such as police, fire (contract services), recreation, planning and building as well as other <br /> general support services. <br /> General Fund Budget Policy Directives <br /> <br /> - It shall be established that a balanced budget will be presented annually to the City Council for adoption. <br /> A balanced budget will be defined as ongoing recurring operating revenues matching ongoing recurring <br /> operating expenditures including debt service. <br /> <br /> - One time or term specific funding can only be used to match one-time non recurring expenditures, term <br /> specific projects and programs, as well as capital expenditures. <br /> <br /> - In order to ensure a balanced budget objective, the City will continue to pursue internal operational <br /> efficiencies and strategies, such as technology, that minimize City costs and impacts to City services. <br /> <br /> <br /> <br /> Budget & Financial Polices 75B-8 Page 1 <br />