Page 363 - 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

Investment Income - Earnings from investment of available monies, whether pooled or
not, will be distributed to the funds in accordance with the equity balance of the fund
from which monies were provided to be invested.

Property Tax Revenues - The Town shall endeavor to avoid a property tax by revenue
diversification, implementation of user fees, and economic development.

C. User-Based (Demand Driven) Fees and Service Charges. For services that are demand
driven and can be associated with a user fee or charge, the direct and indirect costs of
that service will be offset by a fee where possible. The Town staff will endeavor to prepare
a review of all fees and charges annually, but not less than once every three years, in order
to ensure that these fees provide for, at minimum, full cost recovery of service.

D. Enterprise Fund Rates. Utility rates and rate structures for water and sewer services will be
constructed to target full cost of service recovery. Annually the Town will review and
adopt water and sewer utility rates and a rate structure that generates revenue sufficient
to fully cover operating expenses, meet the legal restrictions of all applicable bond
covenants, provide for an adequate level of working capital, and recover applicable
general/ administrative costs. The Solid Waste function will have rates that fully recover all
costs and maintain an adequate balance. The Cemetery Fund will be structured to
operate on lot sales and endowments.

General and Administrative (G&A) Charges – Where feasible, G&A costs will be
charged to all funds for services of indirect general overhead costs, which may include
general administration, finance, customer billing, facility use, personnel, technology,
engineering, legal counsel, and other costs as deemed appropriate. These charges
will be determined through an indirect cost allocation study following accepted
practices and procedures.

E. Intergovernmental Revenues. As a general rule, intergovernmental revenues ( grants) will
not be utilized for on-going operating costs. Any potential grant opportunity will be
examined to identify all costs related to matching and continuation of program
requirements. Staff will focus on one-time grants to avoid long-term implications. If it is
determined that accepting a grant with on-going cost conditions is in the interests of the
Town, all the operating and maintenance costs must be included in the financial forecast
and their ultimate effect on operations and revenue requirements be known.

F. Revenue Monitoring. Revenues as they are received will be regularly compared to
budgeted revenues and variances will be investigated. This process will be summarized in
the appropriate budget report.

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