Res 2008-027 - Laserfiche WebLink

Home Browse Search

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. 8. Indirect Cost Allocation -All City funds will include transfers to and receive credits from other funds for general and administrative costs incurred. The most predominant fund that receives credits from other funds is the General Fund. The General Fund receives credits for bearing such costs as administration, legal counsel, finance, personnel, data processing, engineering and other costs. An independent third-party will conduct an indirect cost allocation study annually to determine the credits received. 9. Enterprise Fund Rates -The Director of Finance and the Department Directors of each Enterprise Fund will review rates annually to ensure sufficient coverage of operating expenses, meet the legal restrictions of all applicable bond covenants, and provide for an adequate level of working capital. 10. Franchise Fees -The Electric Fund and Water and Wastewater Utility Fund will include franchise fees as a component of utility rates. A 9% Electric Fund and a 9% Water and Wastewater Utility Fund franchise fee are levied on gross sales. The City will aim to reduce these franchise fees to equal those charged to investor-owned utility franchises operating within the City. Currently, the City levies a 5% franchise fee to investor-owned utilities. 11. Intergovernmental Revenues (Federal/State/Local) -All potential grants will be examined for matching requirements and the source of the matching requirements. These revenue sources will be expended only for intended purpose of grant aid. It must be clearly understood that operational requirements set up as a result of a grant or aid could be discontinued once the term and conditions of the project have terminated. 12. Revenue Monitoring -Revenues actually received will be compared to budgeted revenues by the Director of Finance and variances will be investigated. This process will be summarized in the appropriate financial report and reported to the City Manager and City Council. City of San Marcos Financial Policy -Revised January 2008 Page 6