HomeMy WebLinkAbout20 - NB-1 - Financial & Budget Policies - 3/3/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: March 3, 2015
ITEM NUMBER: NB -1
SUBJECT: FINANCIAL & BUDGET POLICIES
DATE: February 20, 2015
FROM: FINANCE DEPARTMENT
PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT
RECOMMENDED ACTIONS:
STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR,
(714) 754-5243
Adopt 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 (net increase in fund balance or positive budget variance):
Any end of fiscal year surplus will be allocated using the following priorities:
1. Increase reserves if reserves are below target
2. Examine opportunities for 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. They were reviewed by the City Council in the
February 10, 2015 study session.
Changes to the policy made as a result of the study session are indicated on the mark-up
version of the policy. They include:
• Page 5 Definition of surplus and clarified wording
• Page 6 Clarification of reserves and fund balance
Staff requests Council consideration and adoption of 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
Attachments:
Thomas R. Hatch
City CEO
February 2015 Financial & Budget Policies—mark-up version
February 2015 Financial & Budget Policies
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