Page 371 - 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

D. Financing Programs - Where applicable and with Council approval, impact fees, pro-rata
charges, assessments, or other fees should be used to fund capital projects which have a
primary benefit to specific, identifiable property owners. Recognizing that long-term debt is
usually a more expensive financing method, alternative financing sources will be explored
before debt is issued. When debt is issued, it will be used to acquire major assets with
expected lives which equal or exceed the average life of the debt issue.

E. Reporting - Periodic financial reports will be prepared to enable the department directors
to manage their capital budgets. Summary capital project status reports will be presented
to the Town Council quarterly.

XV. CAPITAL MAINTENANCE AND REPLACEMENT

The Town recognizes that deferred maintenance and not anticipating capital replacement
needs increases future capital costs. Annually, available funds will be evaluated during the
budget process and a percentage of each operating fund’ s budget will be recommended to
the Council for transfer.

Upon approval by the Council, the recommended amount will be transferred to the
appropriate funds ( General/ Utility/ Vehicle Maintenance Replacement Fund) for major
maintenance and replacement of street, building roof, flooring, air conditioning, equipment,
etc.

XVI. INTERNAL CONTROLS

A. Written Procedures - Whenever possible, written procedures will be established and
maintained by the Finance Director for all functions involving purchasing, cash handling
and/ or accounting throughout the Town. These procedures will embrace the general
concepts of fiscal responsibility set for in this policy statement.

B. Department Directors’ Responsibilities - Each department director is responsible for ensuring
that good internal controls are followed throughout his/ her department, that all directives
or internal controls are implemented, and that all independent auditor internal control
recommendations are addressed. Departments will develop and periodically update
written internal control procedures.

XVII. ASSET MANAGEMENT

A. Investments – The Finance Director shall promptly invest all Town funds with the depository
bank in accordance with the provisions of the current Bank Depository Agreement or in
any negotiable instrument authorized by the Town Council. Further, investments shall be

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