HomeMy WebLinkAboutReg 2016-11-21 Item 4E - Resolution - Financial Planning Model and Other General Financial Policies UpdateCOUNCIL AGENDA S
---------------------------- - - - - -- Initials
Meetin
,g Date
Prepared by
Mayor' s review
Council review
11/14/16
LH
—
❑ Ordinance
llig Date
11/21/16
LH
❑ Other
Mtg Date
SPONSOR Z Council [:] Mayor ❑ FIR ❑ DCD 0 V'inance [:].Fire ❑ IT ❑ P&R ❑ Police ❑ PW1'
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.
REVIEWED 13Y F-1 cow mtg. ❑ CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 10/18/16 COMMITTEE CHAIR: SEAL
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMII'I'Ell-' New policy proposed forwarded to C.O.W.
COST IMPACT / FUND SOURCE
Exi)j-,"ND I'I'UR H' REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $N/A
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/14/16
ITEM INFORMATION
4.E.
151
SPONSOR: LAUREL HUMPHREY
I ORI(,INAi..,A(;[,.Nl)/\DA'1'F: 11/14/16
AGENDA ITEM Ti'i'j,i," A Resolution adopting updated policies relating to the financial planning model and
other general financial policies.
CATF,GORY Z Discussion
M1
,g Dale 11114116
❑ Motion
AItg Date
Z Resolution
Altg Date 11121116
❑ Ordinance
llig Date
R .Bid Award
11�g Date
❑ Public Hearing
MI g Date
❑ Other
Mtg Date
SPONSOR Z Council [:] Mayor ❑ FIR ❑ DCD 0 V'inance [:].Fire ❑ IT ❑ P&R ❑ Police ❑ PW1'
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.
REVIEWED 13Y F-1 cow mtg. ❑ CA&P Cmte ❑ F&S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 10/18/16 COMMITTEE CHAIR: SEAL
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMII'I'Ell-' New policy proposed forwarded to C.O.W.
COST IMPACT / FUND SOURCE
Exi)j-,"ND I'I'UR H' REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$N/A $N/A $N/A
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
11/14/16
Forward to the next Regular Meeting
11/21/16
I
----]
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
Resolution
151
152
City of Tukwila
Washington
Resolution No.
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 Page 1 of 2
LH:bjs
153
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of 2016.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk
Rachel B. Turpin, City Attorney
Joe Duffie, Council President
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Attachment:
Exhibit A — Financial Planning Model Policies and Other General Financial Policies
W:\Word ProcessingTinancial Planning Model policies and other general financial policies 11-1-16 Page 2 of 2
LH:bjs
154
EXHIBIT A
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.
Operatinq 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 bQ 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.
PolicV...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 shall not be
moved between City departments without prior approval of the City Council.
Page 2 of 2
156