Resolution 7056 - Laserfiche WebLink

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7056 City of Orono Financial Management Policies Policy 1 - Operating Budget 1-1. PURPOSE The operating budget is the annual financial plan for funding the costs of City services and programs.The general operating budget includes the General Fund, Special Revenue Funds, and Capital Project Funds. Enterprise operations are budgeted in separate Enterprise Funds. 1-2. BALANCED BUDGET The City Administrator shall submit a balanced budget for the General Fund in which appropriations shall not exceed the total of the estimated revenues and available fund balance. Balanced budget is defined as a budget in which current revenues plus net operating transfers and one-time use of excess reserves will be sufficient to support budgeted expenditures. One- time revenues or use of excess reserves will not be used to fund on-going expenditures. One- time funding sources shall only be used to fund capital improvements, equipment, one-time expenditures, or to improve fund balance. The City will provide for all current expenditures with current revenues.The City will avoid all budgetary procedures that balance current expenditures at the expense of meeting future years' budgets, such as postponing expenditures, rolling over short-term debt, and using reserves to balance the operating budget. 1-3. BUDGET PERIOD The City's budget year is the calendar year. The City legally adopts an annual budget for the General Fund. Budgets for Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds are for management purposes only. 1-4. BASIS OF BUDGETING The modified accrual basis will be used for all of the Governmental Funds in the budget. The accrual basis will be used for the budgets of the Enterprise Funds. The basis of budgeting is the same as the basis of accounting used in the City's audited financial statements. 1-5. BUDGET AMENDMENT PROCESS Budget appropriations are by department total within the General Fund rather than by account. Budget changes that involve the transfer of appropriations among accounts only require the approval of the City Administrator or designee. Council approval is required for budget changes that involve a transfer of appropriations between funds or from contingency accounts. The budget changes can be made at any Council meeting. 1-6. LONG-TERM FINANCIAL FORECASTS The Finance Director will coordinate the development of the five-year capital improvement plan budget and five-year outlook with the development of the operating budget. Operating costs associated with new capital improvements will be projected and included in future operating 1-1