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Home My WebLink AboutCOW 2016-11-14 Item 4G - Resolution - Financial Planning Model Policies AmendmentCOUNCIL AGENDA SYNOPSIS Initials Meetiq Date Prepared by Mayor's review Council revieu, 11/14/16 LH N Resolution Mtg Date 11121116 ❑ Ordinance lvf�g Date 11/21/16 LH [:] Other Al/ g Date v SPONSOR'S At its October 18 meeting, the Finance and Safety Committee requested the addition of a SUMMARY new general financial policy. Council is requested to consider a resolution repealing 1839 and updating the general financial policies for inclusion in the final budget. RI v I NXII-, D 13 Y ❑ cow Mtg. ❑ CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/18/16 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR/ADMIN. COMMI'll'E"E New policy proposed forwarded to C.O.W. COST IMPACT / FUND SOURCE ExPj?.NI)I-I'UIU3 RUQUIRli"D AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/16 ITEM INFORMATION ITEM NO. W" .• STAFT, SPONSOR: LAUREL HUMPHREY I C)RI(;INAI.AGEND.,%DATF1: 11/14/16 A(,, LNDA I'ri-,"m TITLE A Resolution adopting updated policies relating to the financial planning model and other general financial policies. Cxri(-,oRy F;j Discussion Mig Date 11114116 ❑ Motion g Dale Ali N Resolution Mtg Date 11121116 ❑ Ordinance lvf�g Date ❑ BidAward MIg Dale ❑ Public.Ffea fin ,g M�g Date [:] Other Al/ g Date SPONSOR Z Council [:]Mayor [:] HR [:] DCD EJ.Finance ❑ Fire ❑ IT ❑ P&R ❑Police ❑ PIF SPONSOR'S At its October 18 meeting, the Finance and Safety Committee requested the addition of a SUMMARY new general financial policy. Council is requested to consider a resolution repealing 1839 and updating the general financial policies for inclusion in the final budget. RI v I NXII-, D 13 Y ❑ cow Mtg. ❑ CA&P Cmte Z F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 10/18/16 COMMITTEE CHAIR: SEAL RECOMMENDATIONS: SPONSOR/ADMIN. COMMI'll'E"E New policy proposed forwarded to C.O.W. COST IMPACT / FUND SOURCE ExPj?.NI)I-I'UIU3 RUQUIRli"D AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/14/16 11/21/16 MTG. DATE ATTACHMENTS 11/14/16 Informational Memorandumdated 11/8/16 Draft Resolution Minutes from the Finance and Safety Committee meeting of 10/18/16 11/21/16 .• 150 City f Tukwila Allan Ekberg, Mayor TO: Committee of the Whole FROM: Laurel Humphrey, Council Analyst CC: Mayor Ekberg DATE: November 8, 2016 SUBJECT: New General Financial Policy — GF-5 ISSUE Adding a new General Financial Policy (GF-5) for the City. DISCUSSION The City's financial policies relating to the Financial Planning Model and other General Financial Policies are adopted bx resolution and included iD the printed adopted budget. As part Ofthe 2017-2018 proposed biennial budget review, the Finance and Safety Committee discussed these policies, last adopted by Resolution NO. 1830. Following discussion, the Committee requested the following General Financial Policy be Policy GF-5: Funds exceeding the Mayor's allocated signature authority shall not be moved between City departments without prior approval of the City Council. The Committee finds that addition of this policy will provide an additional tool to the Council and help to clarify expectations pursuant to its fiduciary responsibility as the legislative branch ofthe City. Addition Of @ new General FiDGDda| Policy requires adoption of a resolution to repeal existing Resolution NO. 1839. If approved by Council, this resolution will be included in the final printed adopted 2O17-2018budget. ATTACHMENTS Draft Resolution 10/18 F&S Committee Minutes 152 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING UPDATED POLICIES RELATED TO THE FINANCIAL PLANNING MODEL AND OTHER GENERAL FINANCIAL POLICIES; AND REPEALING RESOLUTION NO. 1839. WHEREAS, the City Council and Mayor are committed to high standards of financial management; and WHEREAS, adopting and periodically updating and revising financial policies are important steps toward ensuring consistent and rational financial management; and WHEREAS, policies related to the Financial Planning Model and other general financial policies are essential components of an overall financial management policy; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Financial policies related to the Financial Planning Model and policies of a general nature, as evidenced in Exhibit A, are adopted. Section 2. The financial policies related to the Financial Planning Model and other general financial policies shall be reviewed on a regular basis and updated as necessary. Section 3. Repealer. Resolution No. 1839 is hereby repealed. WAWord ProcessingTinancial Planning Model policies and other general financial policies 11 -1 -16 LH:bjs Page 1 of 2 153 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 72016. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Joe Duffie, Council President Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney Attachment: Exhibit A — Financial Planning Model Policies and Other General Financial Policies WAWord ProcessingTinancial Planning Model policies and other general financial policies 11-1-16 LH:bjs Page 2 of 2 154 :*A, M I City of Tukwila Financial Planning Model Policies The six-year "Financial Planning Model and Capital Improvement Program" is the primary financial policy document. It represents the culmination of all financial policies. Revenues Policy FP-1: Revenues will be estimated on a conservative basis. Increases greater than inflation in the schedule known as "Attachment A," Revenues and Expenditures Governmental Funds, will require additional documentation. Policy FP-2: Major revenue sources will require explanation in the document known as "Attachment A-1," Notes to Revenues, Expenditures and Fund Balance. Operating Expenditures Policy FP-3: Expenditures for the General Fund operations (schedule known as "Attachment B," General Fund Operating Expenditures) will only include basic inflationary increases at the beginning of the budget preparation process. Proposed increases in programs or personnel will require an issues and options paper and Council approval before being added to the operating expenditures estimate. Capital Expenditures Policy FP-4: Project capital grants with local matching requirements can only be applied for with express approval by the City Council. Grant applications shall be made only for projects listed in the six-year Capital Improvement Program. Policy FP-5: If the proposed grants or mitigation are either not funded or are reduced, the respective project will be reevaluated on the basis of its value and priority level placement in the Capital Improvement Program. Policy FP-6: The financing of limited benefit capital improvements (i.e. private development) should be borne by the primary beneficiaries of the improvement. The principle underlying limited benefit is that the property is peculiarly benefited and therefore the owners do not in fact pay anything in excess of what they receive by reason of such improvement. Page 1 of 2 155 Financial Planning Model Policies (continued) Enterprise Funds Policy FP-7: Each Enterprise Fund shall be reviewed annually and it must have a rate structure adequate to meet its operations and maintenance and long-term capital requirements. Policy FP-8: Rate increases shall be small, applied frequently, and staggered to avoid an overly burdensome increase and undue impact in any given year. Policy FP-9: Rate increases of external agencies (i.e. King County secondary wastewater treatment fees) will be passed through to the users of the utility. Other General Financial Policies Policy GF-1: The City's various user charges and fees shall be reviewed at least every three years for proposed adjustments based on services provided and comparisons with other jurisdictions. Policy GF-2: The Finance Director shall provide a financial status update at least quarterly. Policy GF-3: Budget amendments during the year may be approved by budget motion until the end of the budget year, at which time a formal comprehensive budget amendment is submitted. Policy GF-4: The City shall, whenever practical and advantageous, take advantage of grants, loans, or other external financial sources. With the exception of capital improvement program grants requiring a local match, staff shall report to and seek the approval of the appropriate Council Committee before finalizing the grant. Policy GF-5: Funds exceeding the Mayor's allocated signature authority_ahall not be moved between City departments without prior approval of the City Council. Page 2 of 2 156 Finance and Safety Committee Minutes ..... ........... .................................................. — ......... .............................. Octoberl8,2016 D. Proposed 2016-2017 Biennial Budget: Attachment A Staff provided the Committee with a detailed overview of Attachment A of the Financial Planning Model, which combines the activities of a[[ governmental funds, except lodging tax and drug seizure, and projects them forward six years. Committee members reviewed Attachment A line by line and asked clarifying questions. Staff will update Attachment A with a correction to tine 24 and revenues updated to accurately reflect land sales. COMMITTEE DISCUSSION ONLY. FORWARD TO OCTOBER 24, 2016 COMMITTEE OF THE WHOLE. E. Proposed 2017-2018 Biennial Budget: Financial Policies Resolution 1839, adopted September 2, 2014, establishes Financial Planning Model Polices and ,other General Financial Policies. Committee members and staff discussed the policies including several amendments proposed by Councitmember Robertson. Following discussion, the Committee requested the following new policy: Policy GF-5: Funds exceeding the Mayor's allocated signature authority will not be moved between City Departments without Council approval. Staff will prepare an amendment to Resolution 1839 for Committee of the Whole consideration. DISCUSSION ONLY. FORWARD TO COMMITTEE OF THE WHOLE, DATE TO BE DETERMINED. III. MISCELLANEOUS Adjourned at 7:35 p.m. Next meeting: Tuesday, November 8, 2016 Committee Chair Approval Minutes by LH 157