Page 362 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

IV. REVENUES MANAGEMENT

A. Revenue Design Parameter: The Town will pursue the following optimum characteristics
in its revenue system:

Simplicity - The Town, where possible and without sacrificing accuracy, will strive to
keep the revenue system simple in order to reduce costs, achieve transparency, and
increase citizen understanding of Town revenue sources.

Certainty - A knowledge and understanding of revenue sources reliability increases the
viability of the revenue system. The Town will understand, to the best of its ability, all
aspects of its revenue sources and their performance, as well as enact consistent
collection policies to provide assurances that the revenue base will materialize
according to budgets, forecasts, and plans.

Equity - The Town shall make every effort to maintain equity in its revenue system: i.e.
the Town shall seek to minimize or eliminate all forms of subsidization between entities,
funds, services utilities, and customer classes within a utility.

Administration - The benefits of a revenue source will not exceed the cost of collecting
that revenue. Every effort will be made for the cost of collection to be reviewed
annually for cost effectiveness as a part of the Town’ s indirect cost and cost of service
analysis.

Adequacy, Diversification and Stability - The Town shall attempt, in as much as is
practical, to achieve a balance in its revenue system. The Town shall also strive to
maintain a balanced and diversified revenue system to protect the Town from
fluctuations in any one source due to changes in local economic conditions which
adversely impact that revenue source.

B. Other Considerations. The following considerations and issues will guide the Town in its
revenue policies concerning specific sources of funds:

Cost/ Benefit of Incentives for Economic Development - The Town will use due caution
in the analysis of any tax or fee incentives that are being considered to encourage
economic development. A cost/ benefit ( fiscal impact) analysis will be performed as a
part of the evaluation for each proposed economic development project.

Non-Recurring Revenues - One-time or non-recurring revenues will not be used to
finance on-going operational costs. Non-recurring revenues will be used only for one-
time expenditures such as long-lived capital needs or one-time major maintenance
projects that occur infrequently. Non-recurring revenues will not be used for budget
balancing purposes except to cover the one-time expenditures described above.

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