2000 AGN FEB 29 I01 - Laserfiche WebLink

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Construction of the 3-5 Storm Drain ------------------------Design 65% complete, Financing Ongoing 21, Create Reader Board/Billboard Plan ------------------------Completed & Ongoing 22. Create City -Wide Economic Development Strategies ----Phase I -Complete Phase 2- Work in Progress 23. Restructure Colton Palms Project/Resolve Construction Defects -------------------------------------------By 6/30/00 24. Complete Rancho Mediterrania Conversion Project ------Sales underway 2 Escrows Closed, 15 Units in Escrow Financial Policies Attached is a separate bound document containing ten basic financial policies which management believes will help provide Colton with a more solid foundation. Most of these policies are already in practice while a few represent a new focus. Essentially, all of the policies represent sound business practices which just need to be memorialized in a more formal matter. A discussion of the background for each policy is contained in the attached booklet. Following are the ten recommended financial policies: 1. We will maintain an unreserved and undesignated fund balance equivalent to 8% of the General Fund's operating budget, adjusted annually. Il. We will maintain a balanced operating budget for all governmental funds with on- going revenues equal to or greater than on-going expenditures. Appropriations of available fund balance will only be permitted for "one-time" non-recurring expenditures. III. We will assume that normal revenue inflation and/or growth will go to pay normal inflation expenditures. In no event will normal expenditure increases be approved which exceed normal revenue inflation and/or growth. Any new or expanded programs will be required to identify new funding sources and/or offsetting reductions in expenditures in other programs. IV. We will require that all Enterprise Funds have revenues (customer charges, interest income, and all other income) sufficient to meet all cash operating expenses, depreciation expense (excluding depreciation from assets acquired through aid in construction), prescribed cash reserves per financial policies, and debt service coverage requirements set forth in any related bond covenants. V. We will maintain appropriate reserves in the General Liability Insurance Fund and the Worker's Compensation Fund to meet statutory requirements and actuarially projected needs. 3