Receive a presentation on revisions to the Financial Policies

Receive a presentation on revisions to the Financial Policies and provide direction to staff.

The purpose of this agenda item is to present a draft of potential revisions to the Financial Policies.  These revisions are intended to organize and clarify existing Financial Policies, and to enhance budgeting and fiscal management practices.

Suggested revisions include:

•  Separating Budget Policy Guidelines from Fiscal Policies, eliminating duplication between them and clarifying policy names.

•  Increasing the minimum amount of budgeted capital project expenditures to be 10% of total revenues.

•  Change the Capital Project Policy to allow the budget for capital projects that have not been completed to be carried forward into the subsequent fiscal year.  This replaces the current policy which requires all projects that have not been completed to be re-budgeted in the subsequent fiscal year.

•  Update the Fund Balance Policy for General and Hostelry Fund reserves to reflect the 15% level established by the City Council.

•  Eliminate the Fund Balance Policy requiring a targeted balance of 20% for a general capital reserve, reflecting the fact that the policy for capital project budgeting is being increased, that project specific reserves are being maintained and that the desire is for capital project funds to be expended.