Res 2005-047 - Laserfiche WebLink

Home Browse Search

85. CITY OF SAN MARCOS FINANCIAL POLICY I. PURPOSE The broad purpose of this policy is to enable the City to achieve and maintain a long-term stable and positive financial condition through the use of sound financial management practices. The watchwords used to epitomize the City's financial management include integrity, prudent stewardship, planning, accountability, full disclosure and communication. The more specific purpose of this policy is to provide guidelines to the Director of Finance in planning and managing the City's daily financial affairs and in developing recommendations to the City Manager and City Council. The City Council will annually review and approve this policy as part of the budget process. The scope of this policy covers the operating budget, revenues, expenditures, capital improvements program, financial planning, accounting. auditing, financial reporting, treasury management. debt management, and financial condition and reserves, in order to: A. Present fairly and with full disclosure the financial position and results of the financial operations of the City in conformity to generally accepted accounting principles (GAAP). B. Determine and demonstrate compliance with finance-related legal and contractual issues in accordance with provisions of the City's Charter, the City's Code of Ordinances, the Texas Local Governnlent Code and other pertinent legal documents and mandates. II. OPERATING BUDGET A. Preparation - Budgeting is an essential element of the financial planning, control, and evaluation process of municipal govefllll1ent. The "budget" is the City's annual financial operating plan. The budget includes all of the operating departments of the governmental funds, special revenue funds. enterprise funds, and permanent funds of the City. The budget includes expenditures for personnel, contracted services, materials and supplies, other charges, operating transfers, social services. indirect costs, capital outlay and debt service. The budget is prepared by the City Manager and Director of Finance with the participation of all the City's Department Directors within the provisions of the City Charter, on a basis that is consistent with GAAP. B. Multi-Year PlanninQ - The Director of Finance will prepare a multi-year financial forecast of the General Fund. This forecast is an integral part of developing the proposed budget. City of San Marcos Financial Policy - Revised April 2004 Page]