Resolution 7056 - Laserfiche WebLink

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City of Orono 7 fl 5 6 Financial Management Policies Policy 3 - Revenue 3-1. PURPOSE The City will strive to maintain a diversified and stable revenue system to shelter it from sharp annual fluctuations in any one revenue source. 3-2. RESPONSIBILITY The City Administrator is the responsible authority overseeing all City revenues. Responsibility for administering this Revenue Policy has been delegated to the Finance Department. 3-3. POLICY 1. The City will conservatively estimate and budget for its annual revenues by an objective, analytical process.All existing and potential revenue sources will be re-examined annually prior to adopting a budget. 2. The City will pursue an aggressive policy of collecting revenue to ensure that the City's revenue estimates are met, all taxpayers are treated fairly and consistently, and delinquencies are kept to a minimum. 3. The City will pursue opportunities for federal or state grant funding in order to provide citizens assurance that the City is striving to obtain any and all state and federal funds to which it is entitled,thereby reducing dependence upon local taxpayers for the support of local public services. 4. The City will establish all user charges and fees for the General Fund program activities at a level related to the full cost of the providing services, or as adjusted (by the Council)for particular program goals. Sensitivity to market rates will also be taken into account. Ongoing, the City will review the full cost of activities supported by user fees to identify the impact of inflation and other cost increases and the City Council will review these fees along with net property tax costs at budget time. 5. The City will set fees and user charges for each Enterprise Fund such as water or wastewater at a level that fully supports the total direct and indirect cost of the activity, including depreciation of capital assets and debt service, and to maintain a positive cash flow and provide adequate working capital.These fees and user charges will be reviewed each year at budget time. Replacement (or bonding for replacement) of enterprise infrastructure will be paid for from accumulated (or annual) earnings from the particular system. Transfers of equity from an Enterprise Fund to the General Fund should only be done on a one-time exception basis, for example, to fund an unusual, extraordinary expense and in no event shall such equity transfers be made in consecutive years except those considered a reimbursement for administrative costs. Equity transfers must be approved in advance by the City Council. 6. Donations Received shall be referred to the City Council for action acknowledging receipt and for a budget amendment if needed for an expenditure. 3-1