Page 173 - PowerPoint Presentation

L. Contingent Appropriation: During the budget process, staff will attempt to establish an
adequate contingent appropriation in each of the operating funds. The expenditure for this
appropriation shall be made only in cases of emergency, and a detailed account shall be
recorded and reported. The proceeds shall be disbursed only by transfer to departmental
appropriation. All transfers from the contingent appropriation will be evaluated using the
following criteria:
• Is the request of such an emergency nature that it must be made immediately?
• Why was the item not budgeted in the normal budget process?
• Why can’t the transfer be made within the department?

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.

• 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.

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