TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
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Review of the proposed Financial Management Policies.
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2. SUMMARY
Proposed Financial Management Policies to provide a framework for the annual budget and planning process.
3. RECOMMENDED ACTION
recommendation
Provide input and direction regarding the proposed Financial Management Policies.
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4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
Objective 2.9: Create a fiscal sustainability plan
6. DISCUSSION AND BACKGROUND
On November 26, 2024, the City Council adopted a Strategic Plan, outlining the Council's goals and objectives for the next five years, which included a goal to create a fiscal sustainability plan. As part of this plan, as well as in response to the Fiscal Year 2024-25 (FY 25) operating budget deficit, staff have drafted a set of Financial Management Policies.
While the City has generally practiced many of the guidelines specified in the policies, it had not been formally outlined through a comprehensive document. In an effort to ensure transparency, consistency, and sustainability of the City's finances moving forward, staff have compiled the draft Financial Management Policies (FMPs). These policies provide a framework for the annual budget and planning process, which include guardrails to ensure the financial decisions being proposed will support and maintain fiscal responsibility, accountability, and sustainability into the future. The purpose of the controls outlined in the policy is to establish consistent and sound financial decision-making that will carry forward year to year. These policies will also provide the public a comprehensive document that will serve as the roadmap for the annual budgetary process and a guideline for meeting fund balance reserves. The FMPs cover key elements of the City's finances inc...
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