HomeMy WebLinkAboutResolution 2019-004
Atascadero
Comprehensive Financial Strategy
January 2019
Section 6- Policies
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Review of Fiscal Policies
The budget document allocates City resources such as personnel, materials, and
equipment in tangible ways to achieve the general goals of the community. It is
prudent, therefore, for the City to have in place fiscal policies and practices to guide the
City Manager and City Council through the budget decision-making process. These
policies and practices are:
Operational Efficiencies:
Implement and practice ongoing operational efficiencies to the extent reasonable;
Enter into joint operating arrangements with other organizations so as to provide
services more cost effectively;
Continue the use of valuable volunteers.
Staffing:
Continue to have the Department Head team evaluate key personnel needs of the
City. A supplemental request is submitted by each Department Head for staffing
needs within the department, and these are evalua ted, discussed and prioritized.
Tough decisions are made as part of the budget process based on Council priorities,
safety concerns, and work volume changes;
Utilize private contractors when the same or higher level of service can be obtained
at lower total cost;
Utilize consultants and temporary help instead of hiring staff for special projects or
peak workload periods.
Attract and retain competent employees by providing a professional work
environment, competitive salaries, safe working conditions, and adequate training
opportunities;
Base salary increases on individual merit and job performance levels;
Strive toward maintaining above competitive compensation packages in order to
recruit and maintain the best and the brightest;
Work toward adequate staffing for the service levels being provided;
Be aware of and plan for state, federal and OSHA mandates which might have an
effect on staffing levels;
Be aware of, monitor and avoid the “hidden” costs of employee turnover, burnout,
and stress due to overwork;
Look for staff-level streamline opportunities and reductions in areas where there will
be minimal impacts to citizens, thus “freeing” employee time.
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Education and Communication:
Dissemination of important financial information to staff through City Manager
roundtables, meetings, emails, and other means of communication;
Encourage employee ideas for efficiency, reduction in costs, or increases in
revenues;
Provide Council and public with information regarding the City’s financial outlook
through both the audit and budget process, and continue to update with any
changes that occur.
Economic Development:
Provide a climate that encourages healthy commercial areas that capture more o f
the purchasing power of the community and creates more destination commercial
activities to capture regional money;
Aggressively pursue new developments and businesses which are consistent with
the community’s quality of life and add to the City’s economic base, particularly
those that generate sales tax revenue;
Promote a mix of businesses that contributes to a balanced community;
Continue to improve programs to enhance and retain existing businesses;
Continue the promotion and tourism programs as a key component of the economic
development strategy.
Community Development:
Ensure that adequate funding is in place to provide essential services to new
residents without diluting services for existing residents by:
o Supporting the Community Facilities District to fund the addition of the
necessary police, fire and parks personnel needed to provide services to these
new residents;
o Continuing to the fullest extent possible to annex projects into the Community
Facilities District. (The general plan requires that only developments with 100 or
more units be fiscally neutral);
o Discontinue the use of Assessment Districts in lieu of Homeowner’s
Associations or other similar mechanisms required of new development to
provide ongoing revenue source for the maintenance of development-related
infrastructure. These Homeowner’s Associations or other mechanisms would
be privately managed to avoid City staff time otherwise required of mechanisms
such as Assessment Districts.
Require that new growth pay for the expansion of facilities and infrastructure
necessary to serve the expanding population;
Plan community growth with service and maintenance funding requirements in mind.
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Infrastructure:
Fully fund technology replacement funds;
Work toward fully funding vehicles, equipment, buildings, and other infrastructure;
Continue to determine and implement strategies to reduce the current backlog of
deferred maintenance projects;
Provide sufficient routine maintenance each year to avoid increasing the deferred
maintenance backlog;
Determine a maintenance plan and funding strategy prior to the construction,
improvement or acceptance of new infrastructure.
New Services:
New or expanded programs should only be implemented when a new funding
source has been developed or when an equal or greater cost program has been
eliminated;
Require agreements for specific services and monitor effectiveness on an ongoing
basis.
Construction of New Facilities:
Plan for new facilities only if construction and maintenance costs will not negatively
impact the operating budget.
Cash Investment:
Follow adopted Investment Policy guidelines for the prudent investment of City funds
not required for the immediate needs of the City;
Maximize the efficiency of the City’s cash management system;
Enhance the economic status of the City while protecting its pooled cash.
Fiscal Management:
Maintain appropriate reserve levels;
Consider the long-term and the short-term when making financial decisions;
Continuously monitor operations and make adjustments as necessary;
Take full advantage of opportunities to receive reimbursement funding at maximum
rates possible;
Generate additional revenue by marketing City services to other agencies on a
contract basis;
Maximize revenues by utilizing grants from other agencies to the fullest extent
possible;
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Charge fees for services that reflect the true cost of providing such services and to
review fee schedules on a regular basis;
Fully account for the cost of enterprise operations to avoid any subsidy by the
General Fund and to charge all enterprise funds their fair share of th e cost of City
support services;
Maintain accurate accounting records to keep the City Manager, City Council and
public informed of the financial condition of the City at all times;
Think outside of the box to achieve revenue opportunities that wouldn’t otherwise
exist;
Consider partnerships and taxing opportunities when appropriate.
Conclusion
The policies and practices listed in this section have been practical guides toward a
consistently healthy fiscal condition. The importance of these and a well-defined
financial strategy to anticipate and conquer difficult issues cannot be understated. The
responsibility to maintain a strong organization is shared community wide, but as the
City Council and City employees, we agree to be the leaders in this effort. Council has
shown integrity in the decisions made to maintain the conservative fiscal strategy.
When resources are tight and needs are plenty, it is difficult to comm it to saving some of
those precious resources for the future. Those reserves are most appreciated now as
the City continues to recover and expand revenues. Certainly, the fiscal strategy is
working. The recovery is slow and steady. Decisions will continue to be difficult,
especially as public pressure continues to build to increase one-time and on-going
spending. The fiscal strategy has provided the option to keep operations and service
level stable and continues to provide the City with a sustainable future.
ATTACHMENTS:
Attachment A- The State Legislative Analyst’s Office’s (LAO’s) California Fiscal Outlook
November 2018,
Attachment B- HDL’s City of Atascadero Sales Tax Update Q2 2018
Attachment C- HDL’s California Forecast: Sales Tax Trends and Economic Drivers,
September 2018