• The City will set fees and user charges for each enterprise fund at a level that fully supports the total direct and indirect program costs. Indirect costs will ultimately include the cost of annual depreciation of fixed assets.

• The City Council will establish fees for non-enterprise funds based upon an awareness of the total direct and indirect costs of offering a service. It is recognized that certain services may be subsidized by general taxes based upon a level of subsidy determined by the Council.

• The City will aggressively pursue collection of all revenues when due.

OPERATING BUDGET POLICIES

• The City Council will adopt and maintain a balanced annual operating budget and an integrated five-year capital improvement budget.

• Current annual revenues will be equal to or greater than current expenditures. The City will maintain a long-range fiscal perspective by annually preparing and maintaining a five-year General Fund operating revenue, expenditure and available reserve schedule and a five-year capital improvement plan.

• Any normal existing revenue inflation will be used to pay for normal existing expenditure inflation. The identification of funding sources will be required for any new or expanded programs.

• The City will provide for adequate maintenance and the orderly replacement of fixed assets and equipment.

• As resource allocation plans are developed, consideration for citywide public safety shall be given high priority.

• The City will comply with all the requirements of Generally Accepted Accounting Principles (GAAP).

• The City will annually retain the services of an independent Certified Public Accounting firm to audit the City's financial statements and conduct any tests of the City's records deemed necessary to render an opinion on the City's compliance with Generally Accepted Accounting Principles (GAAP).

• All estimated construction, maintenance and operating costs and potential funding sources for each proposed capital improvement and neighborhood improvement will be identified before it is submitted to the City Council for approval.

• The City will finance only those capital improvements that are consistent with the adopted capital improvement plan and City priorities. All capital improvement operating and maintenance costs will be included in operating budget forecasts.

• Only capital improvements that cannot be financed from current revenues will be financed with debt borrowing except for enterprise funds. The City will determine and use the least costly financing method for all new capital improvement projects.

• The term for repayment of long-term financing for capital improvements will not exceed the expected useful life of the project.

• The City goal will be to maintain a reserve for emergencies and economic uncertainty equivalent to 15% of the General Fund annual operating budget.

• The City will maintain appropriate reserves in the Self-Insurance Funds based on statutory requirements and actuarially projected needs.

• Acquisition of real property shall be tied to a specific objective, with the source of adequate funds identified and considerations given for the long-term fiscal and policy impacts.

• Disposition of real property shall be considered for those properties without specific deed restrictions and which are unused, under-utilized, economically not viable, or which were acquired for an outdated plan or purpose.