HomeMy Public PortalAbout1998_11_24_R265The Town of
Leesburg,
rg ma
RESOLUTION NO.
A RESOLUTION:
PRESENTED November 24, 1998
98- 265 ADOPTED November 24, 1998
READOPTING A FISCAL POLICY FOR THE TOWN
WHEREAS, the FY 2000 budget process will begin within the next two months; and
WHEREAS, a copy of the previously adopted fiscal policy located in the adopted FY
1999 budget is attached; and
WHEREAS, the fiscal policy provides guidance to staff in preparing the budget and
publishes the Town Council's policies regarding debt, service levels, revenue and reserves; and
WHEREAS, an effective adopted fiscal policy serves as assurance to the financial
markets that Leesburg is committed to sound management practices.
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia that the
attached fiscal policy is hereby readopted.
PASSED this 24th day of November, 1998.
lem, Mayor
Town of Leesburg
ATTEST:
Clerk of Council
R:fis.pol.
FISCAL POLICY
The Town Council's adopted fiscal policy guides financial decision-making with the
following elements.' Financial Reserve Policy, Service Level Policy, Debt Policy and
Revenue Policy.
Effective fiscal policy for town government:
· Links long-term financial planning with short-term daily operations.
· Stabilizes town financial status to ensure that the organizational goals and
objectives ate met and that effective public policy decisions are implemented.
· Protects the town from emergency fiscal crisis, ensuring the maintenance of
se~iees in the event of an utfforeseen occurrence.
Ensures the highest possible credit and bond ratings by meeting the demands
of bond rating agencies through sound, conservative financial decision-
making.
Service Level Policy. Service levels will be provided within the constraints of available
teso~¢es. -Services will be provided only at the most efficient and effective level to meet
the needs of local citizens and businesses as determined by the Town Council. Town
financial plarming will provide for adequate maintenance and replacement of capital
items. Town citizens expect the finest in municipal services. Quality of life, one of the
basic cornerstones of economic development, can only be maintained with a level of
mumcipal services that promotes quality business attraction and retention.
Debt Policy. The established town debt policy is as follows:
Debt may be utilized as a means to keep pace with the maintenance and
capital needs of tow~ gi'owth. The tow~ will make .fi~,ancial decisions that
ensure future debt will be available at a reasonable cost.
Borrowed funds should only be used for capital projects that cannot be funded
through operating revenue. The town should not fund ettrtent opefatiofis with
borrowed proceeds.
· The debt repayment period for financing capital improvements through bond
issues should not exceed the expected life of the improvemem being financed.
· Even though debt capacity is 10 percent of real estate assessments, Council
has adopted a more conservative capacity favored by bond rating agencies.
· Total tOwn general obligation debt should not exceed $2,000 per capita.
· General fund debt service expenditures should not exceed 15 percent of our
total general fund operating expendRures.
· User fees may be considered restored and increased for those services with
specialized clientele.
Intergovernmental funding will be aggressively pursued to ensure all revenue
sources axe identified and garnered for programs that the Town Cotmcil
identifies as priority.
Revenue Policy. Town Council's objective is to implement a diversified taxing policy to
spread the revenue burden over a wide variety of sources. Real estate taxes, personal
property taxes, meals taxes, transient occupancy taxes, utility taxes, business license
taxes, cigarette taxes and other taxes must be fully utilized {o meet to,ova revenue needs
without unnecessarily burdening single sectors of the community.
Financial Reserve Policy. The town will maintain a positive undesignated fund balance
so that effective cash flow cma be maintained, avoiding the need for tax amicipation
borrowing. The fund balance is also available for emergency purposes. Town Council in
fiscal yeax 1992 established a fund balance goal of $1,-500,000 which was later amended
to 15% of General Fund expenditures. This policy was amended with the passage of the
Fiscal Yeax 19-9-9 budget to 14% to allow for the use of reserve funds to be used as a
funding source toward balancing the budget. Because of its importance to financial
stabilily, the town's general fund balataee will be maintained in fiscal yeax 199-9 at
approximately $2,530,126 which is consistent with the adopted policy.