1992-169-Establishing Town Financial PoliciesRESOLUTION 1992 -169
RESOLUTION OF THE TOWN OF LOS GATOS
ESTABLISHING TOWN FINANCIAL POLICIES
WHEREAS, the Town's budget is adopted annually as an expenditure and
comprehensive financial plan; 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, the Town has established specific financial policies including
revenue policies, reserve policies, budgeting and expenditure and Capital Improvement
Policies which now require revision to create reasonable flexibility.
RESOLVED, that Resolution 1986 -171 is rescinded and the Financial Policies
(attached) are and shall be the applicable controlling policies for the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 8th day of September, 1992 by the following
vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Joanne Benjamin, Steven Blanton, Brent N. Ventura
Mayor Eric D. Carlson
NAYES: None
ABSENT: None
ABSTAIN: None �
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CL RK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
TOWN OF LOS GATOS
FINANCIAL POLICIES
REVENUE:
° 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 on the cost
of providing services.
BUDGETING & EXPENDITURE:
° Current year operating expenses will be totally funded by current year revenues.
General Fund reserves will be utilized for capital projects only and not for on-
going operations.
° Long -term debt will be confined to capital improvements or special projects that
cannot be financed from current revenues.
° Department expenditures are limited to:
° Budgeted expenditures approved by the Town Council by program
categorized in three major 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 require Town Council approval.
° Budget transfers between programs within the same fund within the same
category, require Town Manager approval. Single transfers in excess of
$10,000 require Town Council approval. Cumulative transfers in excess of
$50,000 are to be reported to the Council following Town Manager approval.
° Quarterly budget reports will be submitted to the Town Council to provide
information on the status of the Town's financial condition.
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RESERVE:
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 worker's compensation and unemployment insurance.
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 minimum 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 & federal funding sources as they become available
° The Town will develop a multi -year plan for capital improvements to be updated
annually. Future capital expenditures will be projected annually for a 5 year
period based on changes in the community or replacement of the infrastructure.
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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.
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