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FINANCIAL POLICIES (CONTINUED)
The operating budget shall be linked to Financial and Strategic Plans.
The City Manager will prepare and present the City’s annual operating budget to City Council
for their approval. The City Council has the final responsibility for adopting the budget and for
making the necessary appropriations.
The annual adopted budget shall be comprehensive in scope and include all annually budgeted
operating funds.
The proposed operating budget shall appropriate sufficient funds for operations to maintain
existing quality and scope of City Services.
The basis of budgeting shall be modified accrual in the Governmental Funds and full accrual
(working capital) in the Proprietary Funds.
An annual budget calendar shall be prepared including statutory public meeting and tax notice
requirements.
Specific City Council action shall be required to amend the operating budget.
Where possible, the City will integrate performance measurement, service level, and productivity
indicators in the City’s published budget document.
CAPITAL BUDGET POLICIES
Non-recurring capital expenditures are budgeted as debt funded or operating accounts if minor.
Operating expenditures that are incurred from non-recurring capital expenditures are included
and anticipated in each operating fund’s budget.
Definition of a capital project- a capital asset expected to have a useful life greater than two years
and an estimated cost of $5,000 or more. Capital projects include the following:
• Construction, purchase, or major renovation of buildings, utility systems, streets,
intersections, or other structure
• Purchase of land or land rights and major landscaping projects;
• Any engineering study or master plan needed for the delivery of a capital project;
• Any major repair, renovation or replacement that extends the useful operational life by
at least two years or expands capacity of an existing facility.
Projects meeting the above definition will be included in the Capital Improvement Plan (CIP)
rather than the annual operating budget document.
As a planning document, the City shall adopt annually the first year of a five year rolling projection
of the City’s capital needs as well as the future financing requirements in the form of a CIP. The
CIP shall be linked to the City financial and strategic plans.
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