65B - 1ST QUARTER BUDGET UPDATE - Laserfiche WebLink

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EXHIBIT 3 . City of Santa Ana - Administrative Guidelines Council Approval Date: Subject Budget Principles PURPOSE The Budget Principles ("Principles') are guides to be used in the development of the City of Santa Ana's Annual Budget as well as to establish a framework for fiscal stability and accountability. It is intended to promote transparency and the development of true, current and accurate information. These Principles are in support of all other adopted fiscal policies. GENERAL BUDGET PRINCIPLES These guidelines establish the budget parameters which will be issued in preparation and monitoring of the annual City budget. Structurally Balanced Budget. The City's general operating budget should be structurally balanced, which is defined as ongoing revenue should be equal to or exceed operating expenditures in both the proposed and adopted budgets. If a structural imbalance occurs, a plan should be developed and implemented to bring the budget back into structural balance. Multi -Year Financial Forecasting. A general fund will consist of projected revenues and anticipated expenditures over the course of five years and will take into consideration external factors and will be presented on an annual basis to the City Council for consideration. Use of One -Time Resources. One-time resources, including but not limited to: ending operating balance, unallocated fund balance, or un -appropriated "Assigned" fund balance can be utilized upon two-thirds approval by the City Council in the event that a structural budget deficit exists. Use of one- time funds is allowable for one-year and may be eligible for two consecutive years upon further consideration by the City Council. Established Reserves. Reserves for all funds have been established in order to ensure operational continuity, to guard against major disruption in services created by unforeseen economic events, and/or be utilized for financial emergencies as described in the City's Budget & Financial Policies. Debt Issuance. The City shall adopt a debt management policy that will establish parameters and limits to ensure long-term financial stability. Employee Compensation (Negotiations). Negotiations for employee compensation shall be focused on all personnel services cost changes. Compensation costs shall be included in the five-year financial forecast to gauge affordability. Fees and Charges. Fees and charges should reflect the true cost of providing services in order to ensure cost recovery. All departments should be responsible for updating fees and charges on an annual basis. Opportunities should be explored to establish new fees for services where appropriate. 65B-33