(A resolution establishing policy for preparing the Hood River Municipal Budget, replacing Resolutions 93-14 and 94-10)
WHEREAS the State of Oregon requires all cities to maintain balanced budgets;
WHEREAS the City Council adopted a deficit reduction plan on February 13, 2006;
WHEREAS the City Council wishes to promote maximum transparency in the budgeting process;
WHEREAS the City Council desires to ensure the City uses the most sustainable, fiscally responsible budgeting processes practicable;
WHEREAS the City’s financial health will benefit from an increased planning horizon;
NOW, THEREFORE, BE IT RESOLVED by the Hood River City Council that:
1. The budget will conform to the goal of a 0 or positive unreserved ending fund balance in all funds by June 30, 2009.
2. The budget will contain a deficit reduction of at least $250,000 per year in the General Fund until the General Fund achieves a positive unreserved ending fund balance.
3. The General Fund should reach a target unreserved ending fund balance of at least 10% of fund requirements by June 30, 2011.
4. After June 30, 2011 the General Fund shall maintain an unreserved ending fund balance of at least 10% of fund requirements except for extraordinary circumstances.
5. All operating funds shall have a budgeted contingency reasonable to the purpose of the particular fund.
6. Fund accounting and expense allocation shall reasonably reflect actual intended resource use as established by City Council resolution, goal setting, and City management policies.
7. Special revenue funds shall be created only as needed to segregate funds due to statutory requirements, ordinances or contractual commitments.
8. Except for extraordinary circumstances, current City services shall be funded by current resources. Under normal circumstances, cash carryover from previous years shall be used only after the 10% unreserved ending fund balance requirement is met.
9. The City Budget Officer shall annually present to the Budget Committee a three-year forecast of revenues and personnel service expenses.
10. The City Council shall, as part of annual goal setting, prepare a resolution with any specific guidance for the following fiscal year’s budget preparation.
11. The City Council shall approve all collective bargaining agreements.
12. The City shall have a replacement schedule for all fixed assets except land.
13. The City shall annually review its fees or charges for services provided and consider the extent to which cost of services is recovered. Annual automatic increases should be indexed to an acceptable factor.
14. Capital facilities improvement plans shall be reviewed annually for progress and compliance.
Adopted this 9th day of July, 2007.
Linda Streich, Mayor
Jill Rommel, City Recorder