HomeMy WebLinkAbout0558.091-
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January 9, 1992
HONORABLE CITY COUNCIL
Palo A~to, California
1'92-'. FINANCE CoXMITTEE BECOHHENPED BUDGET GUIDELrNE~
Members of the council:
9
Tne following are pIoposed as guidelines for staff in preparing the
1992-94 opera~ing budget:
1. The city operating budget will be prepared on the basis of a
two-year plan, with tbe first year being appropriated and the
second year approved in concept. The capital Improvement
Program (CIP) will cor,tinue to be prepared as a five-year
plan, with the first t\liO years treated in the same manner as
the oper-ating budget. Changes to the second-year plan. 'Will be
limited to priority changes, new mandates, health and safety
needs, or significant cha:lges in projected expenditures or
revenues.
2. The City enters the two-year b1J.dget process in the middle of
an economic downturn. Service levels in the Ceneral Fund must
reflect the realities of ongoing revenue sources.
3. NeW' revenue sources and increases to existing revenue 50'.lr-ces
will cont.inue to be aggressively investigated, keeping in mind
the restrictions impo~ed by the City's Gann limit.
4. MuniCipal fees and charges shall be determined in accordance
with ths methodology approved by the City council in the 1989
Cost Allocation/User Fee Study. except cases where it would
cause financial hardship on Palo Alto residents, fee recover~~
goals will be set at ra"r-.ges ..,hich approach 100 percent
recovery of tot~l costs.
5. No net increase in the number of General Fund positions will
be proposed unless the pOSition can generate SUfficient
revenue to meet or exceed its costs.
CMR:558:91
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6. Salaries and benefits will be establishe"-with the goal of
"keeping the City a ct .... mp~titive employer with surrounding
jurisdictions. However, this does not quar-antee that salaries
will keep up with the Bay Ar~a inflation rate~
7. The use of volunteers will continue to be encourag~d to the
fullest extent possible.
s. The budget 'Will continue to reflect an effort to ider.tify
improvements through more efficient organization and use of
City staff and resources.
9. Community input on levels of service, given changing economic
conditions, st-.all be used to help prioriti<:e. funding levels.
10~ ':'he General Fund elP should focus primarily on existing
commitments, and secondarily on any new City priorities. The
Enterprise Fund CIP, relying as it does on a rate stru~ture to
fund both capital and maintenance and operations costs, needs
to be prepared with reference to the adopted long-term
infrastructure plan for each separate utility.
tReS~e~~Ubmitted'
M STEELE . ?et ~.n.qer
~t12~~.("2
Finance Director
ager
Related Staff Reports: CMR:49l~91
CH!<:524-9l
CHR:5S8:91 2