Res 2014-057/Budget Policy Statement Adoption

Home Browse Search

SAN MARCOS City of San Marcos 2015 Proposed Budget Policy Statement Adoption: April 15, 2014 I. Fund Balance Goals ■ General Fund: Minimum of 25% (of recurring operating expenses) ■ Water/ Wastewater Fund: Minimum of 25% (of recurring operating expenses) ■ Electric Utility Fund: Minimum of the equivalent of 60 days of operating expenses including purchased power Il. Capital Improvements Program • In -depth review of Capital Improvements Projects underway. Will evaluate funding needs on existing projects, staff capacity to complete current and future projects. Initial Recommendations will be presented to Council • Explore the option to achieve economies of scale by bundling smaller, multi -year projects, like sidewalk improvements, into single year funding. • Issue only up to an appropriate amount of debt in the general fund to maintain the 50/50 debt to operations ratio • Utility CIP capacity calculated through the rate model III. Revenue Goals GENERALFUND ■ No Property tax rate increase ■ Property Values increase based on a conservative trend ■ Electric Utility fund franchise fee transfers to the General Fund will be reduced to 7% in Fiscal Year 2015 ■ Sales tax will be projected with a 5% increase over prior year ■ Building Permit fees will be based on a conservative trend ■ All other revenues will be increased 1 % WATER FUND ■ Rate study underway to determine possible rate structure changes ■ Recommendations related to rate structure and future rate increases will be made by Citizens Utility Advisory Board ■ Preliminary rate study results available in May ELECTRIC FUND ■ Rate study underway to determine possible rate structure changes ■ Recommendations related to rate structure and future rate increases will be made by Citizens Utility Advisory Board Budget Policy Workshop Page 1 April 15, 2014