Res 2013-142/Adopting a revised financial policy

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B. Issues — The following considerations and issues will guide the City Finance Department in its revenue policies concerning specific sources of funds: 1. Cost /Benefit and Financial Impact Analysis for Tax and Fee Abatements — A cost /benefit and financial impact analysis should be performed to assess tax or fee abatement economic development incentives. 2. Accounts Receivable — Accounts receivable procedures will target collection for a maximum of 30 days from service. Accounts past due more than 120 days may be sent to a collection agency. The Director of Finance is authorized to write -off non - collectible accounts that are delinquent for more than 180 days. 3. Non - Recurring Revenues — One -time or non - recurring revenues should not be used to finance current ongoing operations. Non - recurring revenues should be used only for non - recurring expenditures and not be used for budget balancing purposes. 4. Deferrals or Short -Term Loans — Deferrals or short-term loans will not be used for budget balancing purposes. 5. Property Tax Revenues — All real and business personal property located within the City is valued at 100% of the fair market value for any given year based on the current appraisal supplied to the City by the Hays County Tax Appraisal District (HCTAD). A visual reappraisal and reassessment of all real and business personal property will be done every third year. The HCTAD reappraises real and business personal property every year as a standard practice. Conservatism will be used to estimate property tax revenues. The Hays County Tax Assessor Collector will furnish an estimated property tax collection rate to the Director of Finance. The Finance Department will endeavor with the Tax Assessor Collector to collect one hundred percent (100 %) of property taxes levied in each fiscal year. 6. Interest Income — Interest earned from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the equity balance of the fund from which monies were provided to be invested. 7. User Fees and Service Charges — For services associated with a user fee or service charge, the direct and indirect costs of that service will be offset by a user fee where possible. Department Directors will annually review user fees and service charges to ensure that the costs of services are recouped through user fees and service charges. The City Council will determine how much of the cost of a service should be recovered by fees and service charges.