2013–2014 BIENNIAL BUDGET - the City of Tukwila

2013-2014 Biennial Budget City of Tukwila, WashingtonFinancial Planning Model PoliciesThe Six-Year Financial Planning Model and Capital Improvement Program is the primary financialpolicy document. It represents the culmination of all financial policies.RevenuesPolicy FP-1 – Revenues will be estimated on a conservative basis. Increases greater thaninflation in Attachment A, Total Revenues and Expenditures, will require additionaldocumentation.Policy FP-2 –Major revenue sources will require explanation in Attachment A-1, Notes toRevenues.Operations & Maintenance ExpendituresPolicy FP-3 – Expenditures for the General Fund operations (Attachment B, General FundOperations & Maintenance Expenditures) will only include basic inflationary increases atthe beginning of the budget preparation process. Proposed increases in programs orpersonnel will require an issues and options paper and Council approval before beingadded to the operations & maintenance expenditures estimate.Capital ExpendituresPolicy FP-4 – Project capital grants with local matching requirements can only be appliedfor with express approval by the City Council. Grant applications shall be made only forprojects listed in the six-year Capital Improvement Program.Policy FP-5 – If the proposed grants or mitigation are either not funded or are reduced,the respective project will be re-evaluated on the basis of its value and priority levelplacement in the Capital Improvement Program.Policy FP-6 – The financing of limited benefit capital improvements (i.e. privatedevelopment) should be borne by the primary beneficiaries of the improvement. Theprinciple underlying limited benefit is that the property is peculiarly benefited andtherefore the owners do not in fact pay anything in excess of what they receive by reasonof such improvement.Fund BalancesPolicy FP-7 – At the close of each fiscal year, the General Fund balance and the ReserveFund balance shall equal or exceed 10% of previous year General Fund revenue, exclusiveof non-operating, non-recurring revenues such as real estate sales or transfers in fromother funds. Enterprise funds, at the close of each fiscal year, fund balance shall equal orexceed 20% of the previous year revenue, exclusive of significant non-operating, nonrecurringrevenues such as real estate sales, transfers in from other funds or debtproceeds.Page 39