1986-171-Establishing Town Financial PoliciesRESOLUTION NO. 1936 -171
ESTABLISHING TOWN FINANCIAL POLICIES
WHEREAS, the Town's budget is adopted annually as an expenditure and
comprehensive financial plan; and
WHEREAS, it is also a statement of financial policy; and
WHEREAS the Council policy is to provide quality services, maintain
current Town facilities and equipment, provide improvements
to meet changing needs of the community and establish
reserves to meet known and unknown future liabilities; and
WHEREAS, to achieve this goal the Town has established specific
financial policies including revenue policies, reserve
policies, budgeting and expenditures and Capital Improvement
Policies (listed on Attachment A).
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 17th day of November 1986
by the following vote.
AYES: COUNCIL MEMBERS Joanne Benjamin, Thomas J. Ferrito, and
Vice -Mayor Brent N. Ventura
NOES: COUNCIL MEMBERS None
ABSTAIN: COUNCIL MEMBERS None
ABSENT: COUNCIL MEMBERS Eric D. Carlson, an Mayor Terrence J. Daily
SIGNED. 11
- MAYUK 0 OWN OF LOS GATOS
ATTEST:
CLERK OF'THE JUWN OF LOS GAJU,
ATTACHMENT A
TOWN OF [US GAT0S
FINANCIAL POLICIES
8EVE0UE!
« The Town Will encourage a diversified growing revenue base that is locally
generated to shelter the community from fluctuations in any one revenue
source.
« The Town will follow an aggressive policy of auditing and collecting all
locally generated taxes.
^
The Town will establish and maintain all User charges and fees based 08 the
cost Of providing services.
BUDGETING & EXPENDITURE:
»
Current year operating expenses Will be totally fUU0pd by current year
revenues
o
General Fund reserves will be utilized fOr capital projects only and not for
on-going operations.
»
Long-term debt will be confined t0 capital improvements or special projects
that cannot be financed from current revenues
v Department expenditures are limited 1n:
»
Budgeted expenditures approved by the Town Council by program categorized
in three 0aj0r categories: Personnel/Benefits, Materials, and Capital,
"
Budget transfers within each major category are subject to the Town
Manager's approval.----
�
Budget transfers between major categories and/or yr0Ur603 require Town
Council approval. �� ���—'
» Quarterly budget reports will be submitted t0 the Town Council to provide
information On the status Of the Town's financial condition.
oFvrnvr-
^
Reserves will be established, dedicated and maintained annually to meet known
and estimated unknown future liabilities.
« The Specific Reserve Accounts include but are not limited to a restricted
reserve for:
« Totally funded workers compensation.
0 Totally funded unemployment insurance,
Page 2
Attachment A
Financial Policies
° Liability insurance including one year's premium payment to the insurance
carrier or pool.
Vacation for all vested hours of vacation earnings,
° Fully funded retirement for all employees covered by the Town retirement
program.
° Economic uncertainty set at a miniE7um of 2.5 million.
° Depreciation and replacement of equipment.
° Maintenance of buildings.
CAPITAL IMPROVEMENT:
° Capital Improvement projects will be funded by the following:
Available general fund reserves
° Gas taxes
° Construction fund fees
° Utility
Capital
Parks
° Storm drain basin fees
° Other state E federal funding sources as they become available
° The Town will develop a multi -year plan for capital improvements to be
updated annually. Future captial expenditures will be projected annually for
a 5 year period based on changes in the community or replacement of the
infrastructure.
° The annual capital improvement plan will be based on the multi -year capital
improvement plan.
The Town will coordinate development of the Capital Improvement Program with
the development of the operating budget.
The Town will identify the estimated costs and potential funding sources for
each capital project proposed prior to its submittal to the Council for
approval.
° Capital projects financed by issuing bonds will be paid back within a period
not to exceed the useful life of the project.
TOWNM: 11117 -2 TC DS:pm