65C - REVISED BUDGET POLICY - Laserfiche WebLink

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over the subsequent fiscal year. Upon attainment of the phased objectives, a comprehensive review of the general financial condition of the City will be completed and a new reserve work plan will be developed and submitted for approval that outlines the next intermediate steps for meeting the main objective of a reserve target level of 15 %. Until such time that the General Fund Unassigned Reserve meets the minimum phased requirements as outlined above, the following budgetary and operational guidelines shall be used as a basis to achieve the various minimum requirements. Budget consideration of new programs, personnel, or capital related expenditures shall only be considered If a source of funding is identified either through a corresponding cost reduction, an identified general increase in general tax revenue, or a one -time revenue infusion, Source of funding should include consideration of ongoing general maintenance and operational costs. Departments will be encouraged to continually achieve savings through internal organizational efficiencies. Technology will be encouraged if it can be demonstrated that a one -time capital infusion can result in savings being generated beyond two years. Any General Fund savings generated at the fiscal year end can be considered either for term specific operational or capital needs but a minimum of 5o% (up to 1001yo) of the savings shall be deposited Into the unassigned reserve balance until such time that the phased reserve levels are met, Any internal service fund that has funds In excess of the identified minimum reserve requirement as outlined in this policy, can be utilized as a means to meet the minimum General Fund Reserve requirements. Only unrestricted funds deemed transferable can be utilized. Any transfer to the General Fund Unassigned Reserve Balance will be submitted to Council for consideration and approval. In order to generate additional savings and until such time that the minimum level of reserves has been achieved, the Budget Office will only utilize a fiscally conservative profile for revenue projections. If the phased reserve target requirements as outlined above have not been met it is recommended that beginning in FY 14 -15 a more conservative projection factor be used to generate forced budgetary savings: (NOTE: Each 1% equates to approximately $2 million) FY 12 -13: 100% of recurring revenue projected; FY 13 -14: 100% of recurring revenue projected; FY 14 -15: 99% of recurring revenue projected; Such factors shall be used to generate General Fund savings until such time that a 7 % -8% unassigned General Fund reserve has been achieved. Any generated General Fund savings achieved after reaching between a 7 % -8% undesignated General Fund reserve shall be applied in the following order: Up to a max of 25 %- Unassigned General Fund Reserve Up to a max of 25 %- Economic Uncertainty Reserve Up to a max of 50% -Can be applied to term specific programs, projects, personnel as well as deferred capital maintenance. Page 3 Budget & Financial Polices 65C -9