Page 115 - Pantego FY22 Operating Budget

enact consistent collection policies to provide assurances that the revenue base will
materialize according to budgets and plans.

3. EQUITY. The Town shall make every effort to maintain equity in its revenue system
structure; i.e., the Town shall seek to minimize or eliminate all forms of subsidy
between entities, funds, services, utilities, and customers. The Town 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 source 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 Town will use the administrative processes
of State or Federal collection agencies to reduce administrative costs.

5. DIVERSIFICATION AND STABILITY. 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. 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.

The Town will review all grant submittals requiring an in-kind match requirement to
determine their potential impact on the operating budget, and the extent to which
they meet the Town’s policy objectives. If there is a cash match requirement, the
source of funding shall be identified and approved prior to application. Prior to
submission, all grant requests/applications shall be reviewed by the Town Manager
to ensure the benefits to the Town exceeds the administrative costs incurred through
the life of the grant.

The Town will terminate grant-funded programs and associated positions as directed
by the Town Council when grant funds are no longer available unless alternate
funding is identified.

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

1. COST/BENEFIT OF ABATEMENT. The Town 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. Tax
abatement may be offered on improvements to real property owned by the applicant,
and/or on new personal property brought to the site by the applicant. The abatement
will not be ordinarily considered for projects which would be developed without such
incentives unless it can be demonstrated that higher development standards or other
development and community goals will be achieved using the abatement.

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