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HomeMy WebLinkAboutRESOLUTIONS-2004-032-R-04• 0 5/14/04 32-R-04 A RESOLUTION Revising the City of Evanston Budget Policy BE IT RESOLVED BY THE CITY COUNCIL OF CITY OF EVANSTON, COOK COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: That the Evanston City Council does hereby adopt the revised City of Evanston Budget Policy, attached as Exhibit A and incorporated herein. SECTION 2: That this Resolution shall be in full force and effect from and after the date of its passage and approval in the manner �reired by law. )It I `;. Mayor ATTEST: n a Cit erk y Adopted:- , 2004 City of Evanston Budget Policy Revised May 24, 2004 isIn ongoing efforts toward formally addressing long-term budgeting provisions, the City of Evanston Budget Gemnnittee has endorsed a Budget Policy. The City Council initially adopted this Budget Policy in December 2000. This policy is revised as follows: I. Budget Process A. Preliminary Pubic Hearing In September of each year prior to submission of the City Manager's proposed budget to the City Council, the Administration and Public Works Committee shall publicize and conduct a public hearing to receive input from citizens concerning municipal appropriations for the coming fiscal year. B. Mid- year Budget Workshop Each September the Administration and Public Works Committee shall schedule and hold a mid -year budget workshop. The workshop shall review but not be limited to: • A revenue and expenditure report for the current fiscal year. • Structural or legislative issues affecting the current or future fiscal year. • Revenue and expenditure forecast for the upcoming fiscal year. • Other issues of policy or indicators that will affect the upcoming fiscal year budget. All members of the City Council shall be invited to participate in the Budget Workshop. C. Quarterly Financial Update • Following the end of each financial quarter, the City Manager shall present a report summarizing budgeted vs. actual revenues and expenditures. D. Review of the Comprehensive Annual Financial Report The Administration and Public Works Committee shall review the Comprehensive Annual Financial Report. This review shall take place at the earliest meeting date following publication. E. Copies of the Proposed and Final Budget Sufficient copies of the proposed and final budget shall be placed on file in printed form with the City Clerk, the Public Library, all library branches, and will be available for public inspection at these locations. An electronic version of the proposed and final budget will be posted on the City of Evanston Website. The City of Evanston may offer for sale a printed and electronic copy of the proposed and final budget for a fee not to exceed the cost of preparation, printing, and distribution of the budget. F. Submission of the Proposed Budget The City Manager will submit a balanced budget to the City Council by jaeuary 1 December 31. (Ordinance 57-0-79) 0 IL Fund Policies • A. General Fund The General Fund budget will be balanced with property tax, only after all other revenue sources and expenditure reductions have been exhausted. In addition, all new unfunded mandates must be itemized within the budget. One-time revenues shall not be used to fund current operations. B. Parking System Fund This is an enterprise fund and as such is expected to be self-sufficient. Any revenues generated, especially from sales, should be retained to maintain the fund. Feet should be periodically increased sufficiently to fund operating costs, depreciation, and a reserve. The General Fund will continue to be properly compensated for administrative expenses, which support parking system activities. D. Water Fund This is an enterprise fund and as such is expected to be self-sufficient. Rates should be maintained at sufficient levels to meet the costs of water programs, fund depreciation, and build reserves for future capital needs. Rate increases to the Northwest Water Commission, and the Village of Skokie will conform to the current contractual agreements. Water rates for City of Evanston consumers will be reviewed on an annual basis. No four -yeas The Return on Investment (ROI) transfer to the General Fund shall be reviewed on an annual basis. Rot exGeerd th level set in FL. Cy2Qpn_n, R„ jget define a ratsaral ``asis . Other transfers for reimbursement of administrative expenses should reflect true program costs. E. Fire and Police Pension Funds • The Fire and Police Pension portion of the general levy will be increased to meet the annual actuarially determined funding requirements. F. Emergency Telephone System Fund This fund must be maintained at a level adequate to provide for maintenance of current operations, the capability to respond to unforeseen events, funding of long-term capital improvements, and needed upgrades. The fund shall be entirely supported by revenues received from the imposed surcharge of $1.50 for landline network connections and the $ .75 State of Illinois imposed wireless surcharge. Although none is anticipated, any increase in rates would require a referendum. G. Motor Fuel Tax Fund The expenditures intended for Motor Fuel Tax Revenues must not exceed the amount of funds available from the State of Illinois Motor Fuel Tax Fund. These revenues should be used only for street improvement and repair, as allowed by State of Illinois law. H. Insurance Fund The Insurance Fund must be maintained to meet the City's current insurance liability requirements. Requirements include current budget year obligations and building a reserve over seven years to prepare for anticipated claims and losses. The City Manager shall be required to present an annual report itemizing all of the City's current and long-term claims and liabilities. IR GempliaRGe With the20-0-0 -2001 budget, a FeqU86t f0F IpFepasal should be SeRt GUt fGF outside liability and waFkef:s GOMpeRsation . Each year City Staff will review worker compensation, liability, and property insurance policies to determine if coverage meets current financial and operational needs. The City Manager each year will recommend to the City Council insurance policy coverage and limits and include the necessary funds in the operating budget. • I. Fleet Services Fund The City of Evanston shall maintain vehicles and equipment, which are safe and adequate for the demands of the operating departments. General obligation debt shall not be used for Fleet Services purchases of vehicles. Vehicle purchases from Fleet Services will be supported by fully funding depreciation. J. Debt Service Fund General Obligation Debt of the City means debt (viz., bonds) for which an unlimited real property tax levy is made or pledged for payment. General Obligation Debt shall be allocated into two categories. Self -Supporting General Obligation Debt shall mean General Obligation Debt which, at the time of issuance, is expected and intended by the Finance Director to be payable out of a source of funds other than the City's general real property tax levy, thus permitting the abatement and avoidance of the property tax levy to pay such bonds; examples of Self -Supporting General Obligation Debt include (without limitation) bonds payable from the Water Fund or the Sewer Fund, bonds payable from special assessments, bonds payable from tax increment financing areas, and bonds payable from Motor Fuel Taxes. Tax -Supported General Obligation Debt shall mean all other General Obligation Debt, which is expected and intended to be paid from a general real property tax levy. General Obligation Debt shall not include any obligation of the City not denominated a bond, including, without limitation, short term notes or warrants or other obligations which the City may issue from time to time for various purposes and to come due within three (3) years of issuance. General Obligation Debt does not include bonds which have been refunded or defeased and which, as a consequence of same, are provided for from a dedicated source of • funds or investments. Self -Supporting General Obligation Debt shall not be limited by this Budget Policy. Tax -Supported General Obligation Debt shall not exceed $90,000,000 in aggregate principal amount, which limit is expressly subject to increase from time to time by action of the City Council as the needs of the City may grow. General Obligation Debt issued as so-called zero coupon bonds or capital appreciation bonds shall be counted as debt in the original principal amount issued The Finance Director shall at all times keep a book or record of all General Obligation Debt and its proper allocation. The Finance Director's statements as to the allocation of General Obligation Debt into these two categories shall be conclusive. Notwithstanding this statement of policy, all bonds or other obligations by whatever name designated of the City duly authorized to be issued by the City Council shall be valid and legally binding as against the City, and there shall be no defense of the City as against any bondholder or other obligation holder on the basis of this policy. K. Economic Development Fund Expenditures for the Economic Development Fund should not exceed projected Hotel Tax Revenues. L. Sewer Fund This is an enterprise fund and as such is expected to be self-sufficient. As a result, rates should be scheduled to increase to meet costs of sewer programs. In compliance with Ordinance 12-0-00, and 13-0-03, rates are scheduled to increase in fiscal years 2001 (12%), 2002 (10%), 2003 (10%), 2004 (5%) 04%), 2005 (5%). Transfers to other funds for administrative expenses should be maintained to reflect true program costs. 0 M. Expenditure Analysis City Council shall review all significant operational, economic, program, and expenditure proposals in • regard to the short term and long-term budgetary and economic impact. The appropriate City Department and Staff shall provide the budget analysis for the review and consideration by the City Council. III. Fund Reserve Policy AnetheF GOMPGReAt of the Budget PeIiGy is The Fund Reserve Policy is as follows: seeks to A. General Fund A minimum of 8.3% or one month of operating expenses shall be maintained as a reserve. Any monies over a 10% reserve in this fund shall be re -appropriated to other funds that have not met their reserve requirements. Once all funds have met their fund requirements additional funds shall go to the Capital Improvement Program. A minimum of a 5% reserve is required, per bond agreements. B. Parking System Fund A minimum of 10% expenses shall be maintained as a reserve; in addition a sufficient reserve shall be maintained to meet bond requirements. A portion of the fund reserve shall be used to fund depreciation and capital improvement needs. A minimum of 5% is required, per bond requirements. C. Water Fund A minimum of 10% expenses shall be maintained as a reserve; in addition a sufficient reserve shall • be maintained to meet bond requirements. A portion of the fund reserve shall be used to fund depreciation and. capital improvement needs. A minimum of a 5% reserve is required, per bond agreements. D. Sewer Fund A minimum of 10% expenses shall be maintained as a reserve, a sufficient reserve shall be maintained to satisfy both bond requirements and Illinois Environmental Protection Agency (IEPA) loan requirements. (A minimum of a 5% reserve is required, per bond agreements) A portion of this fund reserve shall be used to fund depreciation and capital improvement needs. 0