STRATEGIC PRIORITY: Government Performance & Financial Management
AGENDA DATE: August 10, 2022
COUNCIL DISTRICT(S): N/A
DEPARTMENT: Budget and Management Services
EXECUTIVE: Jack Ireland
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SUBJECT
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Authorize the following revisions to the Financial Management Performance Criteria: (1) adding an option for a phased approach to the full cost; and (2) make certain conforming, semantic, grammatical, and structural changes - Financing: No cost consideration to the City
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BACKGROUND
On March 15, 1978, City Council originally adopted the Financial Management Performance Criteria (FMPC) to provide standards and guidelines for the City's financial and managerial decision making and to provide for a periodic review of the criteria to maintain standards and guidelines consistent with current economic conditions by Resolution No. 78-2737. City Council adopted specific FMPC for the Water Utilities Department on July 8, 1981. The status of each criterion is updated annually and presented with the annual budget, at year-end, and with each bond sale.
The FMPC contain 54 criteria in seven categories: (1) operating program; (2) pension program; (3) budget and planning; (4) capital and debt management; (5) economic development; (6) accounting, auditing, and financial planning; and (7) grants and trusts. Proposed revisions include new language for an existing criterion and a grammatical correction. The proposed revisions are based on feedback from the City Council and staff/departments.
FMPC #12 currently states, "An annual review of selected fees and charges will be conducted to determine the extent to which the full cost of associated services is being recovered by revenues. All fees and charges will be reviewed at least once every four years. Where feasible and desirable, the City shall set fees and charges to achieve full cost recovery. The City may subsidize the services funded by fees or charge...
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