HomeMy WebLinkAbout- - Item-1 - 2/10/2015CITY COUNCIL STUDY SESSION
REPORT
MEETING DATE: February 10, 2015 ITEM NUMBER: 1
SUBJECT: FINANCIAL & BUDGET POLICIES
DATE: January 29, 2015
FROM: FINANCE DEPARTMENT
PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR,
(714)754-5243
RECOMMENDED ACTIONS:
Provide staff direction regarding the attached financial & budget policies.
BACKGROUND:
The City of Costa Mesa's largest financial responsibility to its residents is the care of public
funds. Financial and budget policies are developed by the Finance Department and CEO in
order to establish the framework for the overall budget planning and financial management
of the City of Costa Mesa. These policies will help City officials plan fiscal strategy using a
consistent approach contributing to the City's fiscal stability and will provide adequate
funding of the services desired by the public.
ANALYSIS:
The complete Financial & Budget Policies document is attached. It contains sections on:
• General Revenue Management
• Operating and Capital Budgets including goals for the following:
0 5% of the General Fund budget allocated to capital projects
o An additional 1.5% of the General Fund budget allocated to capital facilities
• General Expenditure Management including two options for policies relating to fiscal
year-end surplus:
Any end of fiscal year net operating surplus will be allocated using the following
priorities:
1. Increase reserves if reserves are below target
2. Assess prepayment and accelerated payoff of debt
3. Increase funds for capital facilities
• Fund Balance/Reserves/Cash Requirements
• Debt Management
These policies were reviewed by the Finance Advisory Committee on October 28, 2014,
November 18, 2014 and January 20, 2015. Staff requests Council consideration of and
direction on these policies,
CONCLUSION:
These policies will help City officials plan budgets and fiscal strategy using a consistent
approach contributing to the City's overall fiscal stability. They will provide a framework for
adequate funding of the services desired by the public.
Stephen Dunivent
Interim Finance Director
Attachment:
Financial & Budget Policies
omas R. Ha ch
City CEO
K