Res 2003-172 - Laserfiche WebLink

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8. Indirect Cost Allocation - All City funds will include transfers to and receive credits ftom other funds for general and administrative costs incurred. The most predominant fimd that receives credits ftom other fimds is the General Fund. The General Fund receives credits for bearing such costs as administration, legal counsel, [mance, 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 ftanchise fees as a component of utility rates. A 10% Electric Fund and a 9% Water and Wastewater Utility Fund ftanchise 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 teml 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. Iv. EXPENDITURE POLICIES A. Appropriations - The point of budgetary control is at the department level budget for all fimds. Following formal adoption, the budget is amended as necessary through a submission made by a Department Director to the City Manager. The Department Director forwards a budget amendment form detailing the reason, line items and amounts to be effected to the City Finance Department to verify available dollars. The form is then forwarded to the City Manager who then reviews the amendment for overall appropriate objectives and purposes. If the budget amendment requires a transfer between departments, fimds, or requires the use of fimd balance or contingent appropriations, the amendment is submitted to City Council for approval; otherwise, the City Manager has the authority to approve or disapprove. Budget amendments requiring the use of fimd balance or a transfer between departments or fimds shall be formally adopted as an City of San Marcos Financial Policy Page 5 of17