Page 61 - Burleson FY22 City Budget
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financial reports will be presented to the departments within 7 business days.City Council will receive a quarterly financial
summary of key funds within 30 to 45 days after the end of each quarterly period (December, March, June and
September).
D. CONTROL. Operating Expenditure Control is addressed in Section VI.C. of these Policies.
E. ACTIVITY INDICATORS AND STATISTICS. Where appropriate, activity indicators and statistics will be used as
guidelines and reviewed for efficiency and effectiveness. This information will be considered in the annual budgeting
process and reported to the City Council regularly.
F. OPERATING POSITION. The guidelines that the City should be following to assure fiscal stability are those outlined in
Financial Condition/ Reserves/Stability Ratios (IX.A. through F.).
V. REVENUE MANAGEMENT.
A. The City will strive for the following optimum characteristics in its revenue system:
1) SIMPLICITY. The City, where possible and without sacrificing accuracy, will strive to keep the revenue system
simple in order to reduce compliance costs and to make it more understandable to the taxpayer or service recipient.
The City will avoid nuisance taxes or charges as revenue source.
2) CERTAINTY. A knowledge and understanding of revenue sources increases the reliability of the revenue system.
The City will understand its revenue sources and enact consistent collection policies to provide assurances that the
revenue base will materialize according to budgets and plans.
3) EQUITY. The City shall make every effort to maintain, equity in its revenue system structure; i.e., the City shall seek
to minimize or eliminate all forms of subsidy between entities, funds, services, utilities, and customers. The City
shall require that there be a balance in the revenue system; i.e., the revenue base will have the characteristic of
fairness and neutrality as it applies to cost of service, willingness to pay, and ability to pay.
4) ADMINISTRATION. The benefits of a revenue will exceed the cost of collecting and administering the revenue
program. The cost of collection will be reviewed annually for cost effectiveness as a part of the indirect cost and
cost of services analysis. Where appropriate, the City will use the administrative processes of State or Federal
collection agencies in order to reduce administrative costs.
5) DIVERSIFICATION AND STABILITY. In order to protect from fluctuations in a revenue source due to fluctuations
in the economy and variations in weather, a diversified revenue system will be maintained which has a stable source
of income. This stability is also achieved by a balance between elastic and inelastic sources of revenues.
6) GRANTS AND RESTRICTED REVENUES. In order to maintain flexibility in the revenue system, restricted revenues
will be kept to a minimum, and shall be pursued on a cost-benefit basis. All grants and other federal/state, and
restricted funds shall be managed and accounted to comply with the laws, regulations, and guidance of the grantor.
B. The following considerations and issues will guide the City in its revenue policies concerning specific sources of funds:
1) COST/BENEFIT OF ABATEMENT. The City will use due caution in the analysis of any tax or fee incentives that
are used to encourage development. Ideally, a cost/benefit (fiscal impact) analysis will be performed as a part of
such caution.
2) NON-RECURRING REVENUES. One-time or non-recurring revenues will not be used to finance current ongoing
operations. Non-recurring revenues should be used only for one-time expenditures such as long-lived capital needs.
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