HomeMy WebLinkAbout027683 RES - 04/29/2008RESOLUTION
AMENDING FINANCIAL POLICIES ADOPTED BY RESOLUTION
026605 AND PROVIDING FINANCIAL POLICY DIRECTION ON
PREPARATION OF THE FY 2008-09 BUDGET.
WHEREAS, the City of Corpus Christi has a commitment to citizens as expressed in its
Mission Statement:
""The City of Corpus Christi is dedicated to delivering responsive services
that address our diverse community's needs and enhance the quality of
life in our All America City. We will accomplish this through fiscal
discipline, continuous improvement, straight -forward communications,
wise stewardship of resources, and excellent customer service,"; and
WHEREAS, financial resources are budgeted to fulfill this commitment; ent; and
WHEREAS, it has been the City's goal to rebuild the General Fund balance to
acceptable levels, a goal which was expressly stated in past policies with targets for
accomplishing that goal; and
WHEREAS, the City Council adopted a Financial Policy in January 1997 by Resolution
No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965,
modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a -new
Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy
in May 1999 by Resolution No. 023657; reaffirmed the Financial Policy in May 2000 by
Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No.
024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863;
reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the
Financial Policy in April 2004 by Resolution No. 025737; and reaffirmed the Financial
Policy in May 2005 by Resolution 026265; and reaffirmed the Financial Policy in
January 2006 by Resolution 026605;
WHEREAS, as a result of those policies, the City has achieved its goal for the General
Fund balance and desires now to articulate a strategy to maintain that balance and to
utilize any surplus balance to provide for enhanced financial stability in future years; and
WHEREAS, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City's bond rating; and
WHEREAS, it has been the City's practice to reaffirm its financial policy or to adopt new
or modified policy annually in conjunction with preparation of the budget.
NOW, THEREFORE, E, BE IT RESOLVED ED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
The Financial Polices adopted by Resolution 026605 are amended to read as follows:
027683
H:ILE -DIF \Lisa12008 l eselutiens12O0 -O9 Budget Policy Resolution 0 22 .de
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"Section 1. Development/Effective Date of Financial Policy. This Financial Policy
reaffirms and amends the financial policies adopted by each year by the City Council
since 1997. This Financial Policy is made part of the City Comprehensive Policy
Manual. The City Manager is directed to prepare the X006-07 E2OO8O9 proposed
budget in accordance with this policy. The City Council is preparedmake
to al e
expenditure reductions that may be necessary to comply with this policy.
"Section 2. Current Revenues Equal/Exceed Current Expenditures. Current
General Fund operating revenues will equal or exceed current budgeted expenditures.
"Section 3. Fund Balance Reserve/Working Reserve/WorkingCapital. To ensure that current and
future services or operations are not severely impacted by any economic slowdowns,
emergencies, natural disasters or other unforeseen circumstances, adequate financial
resources will be set aside in the General Fund unreserved fund balance. Accordingly it
is the goal of the City Council to build and maintain a reserve in the General Fund
unreserved fund balance which totals at least ten (10%) percent of total annual General
Fund appropriations. The City Manager shall report on the status of compliance with
this ten 10% percent policy at least annually as part of the budget process.
Undesignated fund balance in excess of the ten percent policy requirement may be
recommended for expenditure on one-time improvements, with a priority on
infrastructure and equipment which will reduce the need for future debt. Such
expenditures shall be subject to the normal appropriations and expenditure approval
process applicable to all other funds. Finally, it is noted that extraordinary situations
may arise in which the timing of external actions out of the City's control may require the
use of the funds in the reserve. The City Manager shall note these situations to the City
Council as soon as the information is known.
"Section 4. Property Tax Rate for Operations and Maintenance. The Proposed
Budget for FY 06-07 2008-09 shall be prepared assuming that the City tain the
will be adoptin • a tax rate necessary
i#
to be in compliance with Section 2 above.
Full consideration will be
given to maintainin • the "effective tax rate" for maintenance and operations.
"Section 5. Priority of City Services. The City Council recognizes the need to
provide public services which support the continued growth of the local economy and
personal income growth to insure an adequate financial base for the future. Priority for
funding in the u coming fiscal earfiveF-Y--0-F I 1
will be the City Council
short/long-term goals which are reflected in Attachment A. Every effort should will be
made to : ' + - _ _ . • ..: - .. - . accomplish these Qoals without reducing
current services in other areas.
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"Section 6. Operating Contingencies. The City Manager is directed to budget at
least $200000 per year as an operating contingency as part of General Fund
expenditures in order to further insulate the General Fund unreserved fund balance
from unforeseen circumstances. The City Manager is directed to budget similar
operating contingencies as expenditures in enterprise, internal service and special
revenue funds of the City.
"Section 7. Multi -Year Financial Forecasting. The City will maintain a five-year
financial plan for the General Fund to anticipate potential budget imbalances and
unfavorable revenue or expenditure trends, thus allowing for the identification of
budgetary gaps long before they develop into fiscal crises. Whereas many of the City's
fiscal goals require commitment and disci • line be and the one year considered within
the Ci 's fiscal ear the Cit will also consider ado • tion of action ' lans necessa for
the accomplishment of Cit short term or lora • term goals. These action • lans will be
resented and recommended to the Ci Council in the • roused annual o • eratin
budget and shall be used for level •anent of future budget recommendations as
necessary to accompiish these goals. The City shall also maintain business plans
and/or rate models for enterprise operations.
"Section 8. Revenue Enhancement. The City shall attempt to pursue and maintain a
diversified and stable revenue stream for the General Fund in order to shelter finances
from short term fluctuations in any one revenue source. In orr_o meet the
requirements outlined in Sections 2 and 4, every effort will be made to base rates on a
cost of service model so costs incurred for certain services are paid by the population
benefiting from such services.
"Section 9. Quarterly Financial Reporting and Monitoring. The City Manager shall
provide interim financial performance reports and updates to the City Council on a
quarterly basis. These interim reports must include detailed year to date revenue and
expenditure estimates, as well as explanations for major variances to budget. The
format of the quarterly report must be relatively consistent with the adopted budget.
"Section 10. Use of Nonrecurring Revenue. The City shall endeavor to use
nonrecurring revenue to fund one --time expenditures. Nonrecurring revenue may
include items such as sale of fixed assets, court settlements, or revenue collection
windfalls.
"Section 11.
•
i i i �� i i +■
� s s
f � �
i e #
Debt Management. The City Manager shall
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adhere to the Debt Manag rn nt Policy adopted by Resolution 027526 adopted by the
City Council_ n December 11 2007.
` E 'TIO 1 "!. Section 12. Capital Improvement Plans/Funding. The annual
Capital Improvement Plan shall follow the same cycle as the Operating Budget. As part
of the annual capital budget process, the City shall update its short and long range
capital improvement plans. For the three-year short term plan, projects include any
projected incremental operating costs for programmed facilities. The long range plan
extends for an additional seven years, for a complete plan that includes ten years,
Short-term plan projects must be fully funded, with corresponding resources identified.
As part of a concerted effort to reduce debt levels and improve financial flexibility, the
City shall pursue pay-as-you-go capital funding where possible.
"Section 1 . Ex • enditures. Within the limitation of public service needs, statutory
reQuirements and contractual commitments expenditures included in the operating
bud et shall re resent the most cost efficient method to deliver services to the citizens
fQorpus Christi. Efforts to identify the most cost efficient method of service delivery
shall continue during the fiscal year after the operating budget is adopted and may be
ire • ler ented Burinthe fiscal ear as necessa and of benefit to the • ubliic."
ATTEST:
Armando Chapa
City Secretary
APPROVED:
Lisa Aguilar
Assistant City Attorney
for City Atto me y
(9 , 2008.
TSI OF C - ' US CHRISTI
enry Garr
Mayor
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ATTACHMENT A
City Council Short -Term Goals
1. Establish a corn . rehensive street/road • lan to im • rove their condition and
capacity using on-going maintenance efforts and future bond issues.
2. Develop and implement a process for identifying proposals for the 2008 Capital
Improvement Bond issue to be considered by voters in November, 2008.
3. Develop and implement ent a plan for the maintenance and use of the Coliseum.
4. Improve the Development Process by adoption of a clear and consistent Unified
Development Code and implementing process improvements to make it more
efficient and effective.
5. Develop a plan for Texas A&M University Corpus Christi Expansion.
O. Com lete the u•datin. • rocess on the Cit 's Master Plan utilit elements water
wastewater and st rmwate r .
7. Increase the effectiveness and efficienc in Code Enforcement.
8. Expand the Neighborhood Initiative Program and the Model Block Program.
9. Review the City Charter.
10. Develop a_lowntw-plan.
City cowicil Long -Term Coals
1. Create a comprehensive economic development plan with incentives.
2. Focus on the creation of a long-term transportation plan that integrates a variety
of transportation modes.
3. Establish a Smart Growth plan that links environmental friendly development and
area growth that focuses on mixed use opportunities (retail, residential
recreational, and green spaces
4. Complete Bayfront Development plan.
5. Create a vibrant downtown area with innovative residential housing units and
urban friendly business.
6. Ensure and protect long-term water supply for the region.
7. Ingrove staffin • and to hn l • i al su $ $ort for . ublic safet within the muni i • a
government (primarily Police and fire Department).
8. Develop a competitive compensation plan for City employees. This will assist in
recruiting -ani retiriin_rI s:
9. Establish a Ion • -term infrastructure .Tannin
•
rocess. This initiative will tar • et
the building and repairing ofstreets, ring, waste water management
issues.
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TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the attached ordinance, an
emergency exists requiring suspension of that Charter rule which requires an
ordinance to be considered and voted upon at two regular meetings. Therefore, 1/we
request that you suspend said Charter rule and finally pass this ordinance on the date
of its introduction, or at the present meeting of the City Council.
Respectfully,
Council Members
Respe IlyAd/,
f.lJJdfv
H _A-
ry
Gaffe
Mayor, City of Corpus Christi
The above ordinance was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike Hammell
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
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