HomeMy Public PortalAboutCity Council Fiscal Year 2011 Budget Policy GuidelinesTown Council FY11 Budget Policy Guidelines
The Town Council is adopting these budget policy guidelines pursuant to Section
5-1 of the Watertown Home Rule Charter. Based on these guidelines, the Town
Manager will develop budgetary goals and the Town budget for FY11.
FINANCIAL POLICIES
A. Unreserved fund balance: In order to respond to emergencies and other
unanticipated needs, preserve financial flexibility, and maintain favorable
bond ratings, the Town should seek to maintain an unreserved fund
balance (including stabilization funds) equal to 7-10% of the annual
operating budget. The Council and the Town Manager will work to
develop a formal multi -year policy on the unreserved fund balance,
including the use of free cash if the unreserved fund balance is above the
7-10 % target.
B. Capital Expenditures: In order to maintain and improve its infrastructure,
facilities, and equipment, the Town should seek to make annual capital
expenditures (exclusive of enterprise funds) equal to at least 7.5-8% of
the operating budget.
C. Pension Liability and Other Post Employment Benefits: In order to
achieve long —term financial stability and meet the Town's obligations to
its employees and retirees, the Council, the Retirement Board and Town
manager will work to address the Town's unfunded pension liability and
other post -employment benefits (OPEB).
II. ONGOING BUDGET PRACTICES
In preparing the budget for FY11 and future years, the Town manager should
continue to utilize the following budget practices.
A. Continue the Town's efforts within all departments to obtain grant
funding from federal, state, and other sources, including the use
college interns.
B. Continue to analyze the Town's charges for licenses, permits,
penalties, and fees to determine whether they should be increased
or new ones instituted, while adhering to the principal that fees
should not exceed the cost of services provided.
C. Review the possibilities and cost implications of contracted
services vs. staffing in various departments.
D. Support the possibilities and of providing more services on a
regional basis in accordance with the council resolution.
E. All department heads should seek to identify line -items within
their existing budgets where costs can be controlled and not
increased .Look at other possible scenarios including spending
freezes, level dollar and reduction budgets.
F. Continue to enhance the Town's website as a cost effective means
of delivering information and services, increasing public
awareness, and encouraging public feedback.
III. COST-SAVINGS/REVENUES
The Town Council believes that identification of cost savings and new revenues
should be a precondition to additional expenditures. To this end, in developing
the FY10 budget, the Town should:
A. Complete an energy use baseline inventory for municipal
buildings, vehicles, and street and traffic lighting and create a plan to
reduce energy use by 20% in 5 years.
B. Public safety: Police, Fire and dispatch together represent the
Town's biggest expenditure (after education). Examine how to best
deliver the level of service citizen's want, more efficiently.
C. Institute a formal Town wide Economic Development Program
including the newly rezoned Pleasant Street Corridor District, with a
long- term goal to increase town revenue. The Program should
include a marketing plan to prospective developers as well as the use
of state and federal grants and redevelopment programs.
D. Explore the feasibility of a standardized system of impact fees for
projects subject to site plan review. Consider mitigation monies for
larger scale projects.
IV. PROGRAM ENHANCEMENTS/EXPENDITURES
To the extent that resources allow, in light of the financial policies stated above
and the principle of first identifying cost -savings and new revenue, the following
program enhancements and, if necessary, new expenditures should receive
priority in the FY 10 budget. Education program enhancements and expenditures
should be considered subsequently in light of the recommendations of the School
committee.
A. Repair and improve the Town's streets and sidewalks and
enhance its trees and planting strips. Consideration should be
given to funding such repairs, improvements, and enhancements
from a variety of sources, including tax revenues, debt and a
betterment program. Strengthen capacity (including staffing) and
carry out routine maintenance of the street trees and other trees
on public land and, through the joint efforts of the Tree Warden
and Department of Public Works develop a comprehensive tree
maintenance /replacement Program.
B. Strengthen the Town's capacity to address facilities management,
through regular staffing or contract services. The Council and
Town Manager will continue discussions on reorganizing the
staffing structure of the Public Works Department to include a
facilities manager/engineer.
C. Explore the need and possible funding for a social
worker/community health outreach worker, including reaching out
to the private sector for funding.
D. Explore the budget implications of the re -use of the former
branch libraries
E. Determine the need for, and how to fund future sewer and storm
water infrastructure improvements.
V. BUDGET AND FINANCIAL MONITORING
A: In order to improve its ability to monitor the implementation of
the Town budget, the Town Council will receive quarterly reports on
the revenues and expenditures during the fiscal year. In addition, the
Council will receive monthly reports on the use and balance of
monies in the Council reserve and other Council personnel and
expense line items. An early warning system will be established to
alert the Council if revenues fall below projections.
B: The Town Council will receive quarterly updates on progress in
addressing the recommendations in the annual audit report.