Every Municipal decision affects the revenues and expenditures of city government. New zoning regulations, for example, can necessitate staff time to document non-conformance created by new standards. Street widening can encourage speeding, requiring increased patrolling and enforcement.
Good decision-making requires that fiscal impacts be reasonably projected and be part of the deliberative process. The City desires to continuously improve its understanding of the direct and indirect fiscal impacts of its decisions and include them in its decision-making process.
This section establishes policies that minimize negative fiscal impacts and incorporate long-term fiscal thinking into decisions.
Decision-making deliberations that incorporate the full short-term and long-term economic and fiscal implications of proposed City Council actions.
General Plan Amendments. We require those proposing General Plan amendments to disclose reasonably foreseeable impacts through a fiscal analysis.
Long-Term Funding Disclosure. We require those requesting City support or funding for projects or programs to disclose if and how they can be continued without further City support.
Improving Fiscal Decision-Making. We periodically assess the accuracy of projections for staff time and City resources and use the assessment results to improve our fiscal decision-making process.
Sustainable Development. We recognize impacts to municipal finances as an element of sustainability, and we require claims of sustainability to assess fiscal impacts.
Fully Funded Liability. We require long-term liabilities, such as retiree medical benefits, employee accrued leave balances and self insured liability claims, to be fully funded to ensure sound, long-term fiscal health.
Programmatically Balanced Budget. We require that the annual budget include appropriations allocated in a manner to meet the goal of the programmatically balanced budget.
Budget Margins. We require that the adopted budget for revenue and expenditures reflect sufficient budget margins to minimize negative impacts to City services due to economic uncertainties.
Complete Comparative Context. We require that our annual budget process provide the complete comparative context for proposed new and increased funding so decision makers can fully understand the trade-offs among budget choices.