CITY COUNCIL AGENDA ITEM
Meeting Date: February 24, 2004
Subject/Title: Approve a resolution to amend Budget and Fiscal Policies No.
Submitted by: Pamela Ehler, Director of Finance and Information Systems
Denise Davies, Finance Operations Manager
Approved by: John Stevenson, City Manager
Approve a resolution to amend Budget and Fiscal Policies No. 10-5.
On June 22, 1993, the City Council passed Resolution No. 93-65, adopting
Budget Policy No.10-5, to help insure the legal restrictions of the budget
are in compliance and improve the Finance Department’s ability to regulate
cash flows and make investment decisions.
On April 24, 2001, by Resolution No. 2275, City Council updated Council
Policy No. 10-5, City of Brentwood Budget Policy and repealed Resolution No.
The Budget and Fiscal Policies establish guidelines for budget development,
administration, and management as well as outline the City’s fiscal policies
in regard to user fee cost recovery goals and capital financing and debt
management. The current Budget and Fiscal Policy has been updated in order
to address recent issues and provide clarification. It has been expanded to
include items that were not previously addressed in the policy. This Budget
and Fiscal Policy has been reviewed by department directors.
Some of the changes affecting the amendment to the existing policy are
verbiage clarifications to better define the guidelines. However, additions
to the policy are highlighted below:
1) The legal level of budgetary control language has been updated to clarify
that it is established at the fund level, and adopted on a basis consistent
with accounting principals generally accepted in the United States of
2) A mid-year budget review section has been added to formalize that the
Council will review the City’s fiscal condition, and amend appropriations if
necessary, six months after the beginning of each year.
3) A balanced budget section has been added to document what is meant by the
City’s commitment to maintain a balanced budget over the two-year period of
the Financial Plan.
4) The Policies Recreation Programs section has been updated according to
the Maximus report that was accepted by Council on February 11, 2003.
5) The Minimum Fund Balances/Reserves section now includes language
regarding Minimum Fund Balances/Reserves, Information Systems Replacement,
Building Replacement, Emergency Preparedness Fund and Tuition Fund.
6) A Capital Financing and Debt Management Section has been added which
documents the City’s Capital Financing, Debt Management, Debt Capacity, Land
Based Financings, and Conduit Financings policies.
Budget and Fiscal Policies
RESOLUTION NO. ___
APPROVE A RESOLUTION TO AMEND BUDGET AND FISCAL POLICIES NO. 10-5
WHEREAS, On June 22, 1993, the City Council passed Resolution No. 93-65,
adopting Budget Policy No.10-5, to help insure that the legal restrictions
of the budget are complied with and improve the Finance Department’s ability
to regulate cash flows and make investment decisions.
WHEREAS, On April 24, 2001, by Resolution No. 2275, City Council updated
Council Policy No. 10-5, City of Brentwood Budget Policy and repealed
Resolution No. 93-65.
WHEREAS, the Budget and Fiscal Policies establish guidelines for budget
development, administration, and management as well as outline the City’s
fiscal policies in regard to user fee cost recovery goals and capital
financing and debt management. The current Budget and Fiscal Policy has been
updated in order to address recent issues and provide clarification. It has
been expanded to include items that were not previously addressed in the
NOW, THEREFORE, BE IT RESOLVED by the City of Brentwood as follows:
The Budget and Fiscal Policy will be amended and updated to clarify and
better define policy as attached.
PASSED, APPROVED AND ADOPTED on February 24, 2004 by the following vote:
Karen Diaz, CMC
The purpose of this policy is to establish guidelines for budget
development, administration, and management as well as outline the City’s
fiscal policies in regard to user fee cost recovery goals and capital
financing and debt management.
A. Budget Objectives
Through its Financial Plan, the City will link resources with results by:
1. Identifying community needs for essential services.
2. Organizing the programs required to provide these essential services.
3. Establishing program policies and goals, which define the nature and
level of program services required.
4. Identifying activities performed in delivering program services.
5. Proposing objectives for improving the delivery of program services.
6. Identifying and appropriating the resources required to perform program
activities and accomplish program objectives.
7. Setting standards to measure and evaluate the:
a. Output of program activities
b. Accomplishment of program objectives
c. Expenditure of program appropriations
B. Two-Year Budget
The City Council shall adopt a two-year budget for the ensuing fiscal year
no later than June 30 of each year.
1. The first year of the two-year budget, the City Council will conduct a
budget study session outlining the recommended budget for the two-year
2. The second year of the two-year budget, the City Council will conduct a
budget study session which focuses on changes being recommended for the
second year of the two-year budget.
3. For each of the two years, the City Council will adopt a resolution
appropriating and approving the budget for the ensuing fiscal year.
4. Benefits identified using a two-year financial plan:
a. Reinforcing the importance of long-range planning for managing the City’s
b. Concentrating on developing and budgeting for the accomplishment of
c. Establishing realistic timeframes for achieving objectives.
d. Creating a pro-active budget that provides for stable operations and
assures the City’s long-term fiscal health.
e. Promoting more orderly spending patterns.
f. Reducing the amount of time and resources allocated to preparing annual
C. Measurable Objectives
The two-year financial plan will establish measurable program objectives and
allow reasonable time to accomplish those objectives.
D. Second Year Budget
Before the beginning of the second year of the two-year cycle, the Council
will review progress during the first year and approve appropriations for
the second fiscal year.
E. Operating Carryover
1. Operating Carryover:
a. Operating program appropriations supported by a Purchase or Encumbrance
Order, including Capital Equipment, may be carried over from one budget year
to the next with the approval of the Finance Director.
2. Department Expenditures:
a. The legal level of budgetary control is established at the fund level,
and adopted on a basis consistent with accounting principals generally
accepted in the United States of America.
b. All budget transfers require the approval of the Director of Finance or
designee except those affecting personnel which must be approved by the City
c. Budget transfers required to hire additional permanent personnel require
the City Council’s approval.
F. Goal Status Reports
The status of major program objectives will be formally reported to the City
Council on an ongoing consistent basis.
G. Mid-Year Budget Reviews
The Council will formally review the City’s fiscal condition, and amend
appropriations if necessary, six months after the beginning of each year.
H. Balanced Budget
The City will maintain a balanced budget over the two-year period of the
Financial Plan. This means that:
1. Operating revenues must fully cover operating expenditures, including
2. The City will strive to maintain 30% of the annual appropriations in the
General Fund’s Undesignated Fund Balance.
3. The City will strive to have cash reserves in the Enterprise Funds at an
optimal level of 30%.
FINANCIAL REPORTING AND BUDGET ADMINISTRATION
A. Annual Reporting
The City will prepare annual financial statements as follows:
1. The City will contract for an annual audit by a qualified independent
certified public accountant. The City will strive for an unqualified
2. The City will use Generally Accepted Accounting Principles (GAAP) in
preparing its annual financial statements, and will strive to meet the
requirements of the GFOA’s Award for Excellence in Financial Reporting
3. The City will issue audited financial statements within 180 days after
B. Interim Reporting
The City will prepare and issue timely interim reports on the City’s fiscal
status to the Council and staff. This includes:
1. On-line access to the City’s financial management system;
2. At a minimum, quarterly revenue and expenditure reports to the City
Council, City Manager and Department Heads;
3. Mid-year budget reviews; and
4. Status report during budget review process.
C. Budget Administration
The City Council may, by majority vote, amend or supplement the budget at
any time after its adoption. The City Manager has the authority to make
administrative adjustments to appropriations as long as there is no funding
source incompatibility and provided those changes do not increase overall
A. Diversified and Stable Base
The City will seek to maintain a diversified and stable revenue base to
protect it from short-term fluctuations in any one revenue source.
B. Long-Range Focus
The City Council will emphasize and facilitate long-range financial planning
through the development of a two-year budget and a five-year capital
C. Interfund Transfers and Loans
In order to achieve important public policy goals, the City has established
various special revenue, capital project, debt service and enterprise funds
to account for revenues whose use should be restricted to certain
activities. Accordingly, each fund exists as a separate financing entity
from other funds, with its own revenue sources, expenditures and fund
Any transfers between funds for operating purposes are clearly set forth in
the budget. These operating transfers, under which financial resources are
transferred from one fund to another, are distinctly different from
interfund borrowings, which are usually made for temporary cash flow
reasons, and are not intended to result in a transfer of financial resources
by the end of the fiscal year. In summary, interfund transfers result in a
change in fund equity; interfund borrowings do not, as the intent is to
repay in the loan in the near term.
From time-to-time, interfund borrowings may be appropriate; however, these
are subject to the following criteria in ensuring that the fiduciary purpose
of the fund is met:
1. The Director of Finance is authorized to approve temporary interfund
borrowings for cash flow purposes whenever the cash shortfall is expected to
be resolved within 90 days. The most common use of interfund borrowing under
this circumstance is for grant programs like the Community Development Block
Grant, where costs are incurred before drawdowns are initiated and received.
However, receipt of funds is typically received shortly after the request
for funds has been made.
2. Any other interfund borrowings for cash flow or other purposes require
case-by-case approval by the City Council.
3. Any transfers between funds where reimbursement is not expected within
one fiscal year shall not be recorded as interfund borrowings; they shall be
recorded as interfund operating transfers that affect equity by moving
financial resources from one fund to another.
USER FEE COST RECOVERY GOALS
A. Ongoing Review
Fees will be reviewed and updated on an ongoing basis to ensure that they
keep pace with changes in the cost-of-living as well as change in methods or
levels of service delivery.
B. User Fee and Utility Rates Cost Recovery
It is the intent of the City to collect user fees and/or utility rates for
services provided to the public, where applicable.
C. Annual Review
User fees and utility rates will be reviewed and updated annually to ensure
that they keep pace with the cost of providing the service.
D. Development Fees Review Program
The following cost-recovery policies apply to the development fees review
1. Services provided under this category include:
a. Planning (planned development permits, tentative tract and parcel maps,
re-zonings, general plan amendments, variances, use permits, etc.).
b. Engineering (public improvement plan checks, inspections, subdivision
requirements, encroachments, etc.).
2. Cost recovery for these services should generally be very high. In most
instances, the City’s cost recovery goal should be 100%. Exceptions to this
standard include appeals, where the fee is set very low to provide adequate
opportunity for due process.
3. The City will clearly establish and articulate standards for reviewing
developer applications to ensure that there is “value for cost.”
E. Other User Fees
1. Other User Fees include:
a. City Clerk (Agenda mailings, U.S. Passport Services, Public Record
Requests, Municipal & Zoning Code Supplements, Manuals and other documents,
b. Police (DUI recovery costs, fingerprinting, arrest report copies, etc.).
c. Other (Graffiti removal, copying costs, cost for documents published by
the City, costs for damaged property, or other costs reasonably anticipated
to be covered by user fees).
F. Utility Fees and Rates
Water, Solid Waste and Sewer Enterprises: The City will set utility fees and
rates at levels which fully cover the total direct and indirect costs,
including operations, capital outlay, and debt service.
G. Recreation Programs
The following cost recovery policies apply to the City’s recreation
1. Cost recovery levels as recommended in the Cost of Services Study report
prepared by Maximus and accepted by City Council on February 11, 2003.
2. Cost recovery goal of 50% for youth programs.
3. Cost recovery goal of 75% for adult programs.
4. All programs that were above the recommended cost recovery as reported to
Council on February 11, 2003 will continue a goal of 100% cost recovery.
5. Programs that were under the cost recovery percentage as reported on
February 11, 2003, with the exception of the aquatic center, will recover
direct costs, and set as a goal, within three years of the report, to meet
the cost recovery percentage as approved by Council.
1. The City Council will annually adopt a resolution establishing the City’s
appropriations limit calculated in accordance with Article XIIIB of the
Constitution of the State of California, Section 7900 of the State of
California Government Code, and any other voter approved amendments or state
legislation that affect the City’s appropriations limit.
2. The supporting documentation used in calculating the City’s
appropriations limit and projected appropriations subject to the limit will
be available for public and City Council review at least 10 days before
consideration of a resolution to adopt an appropriations limit. The City
Council will generally consider this resolution in connection with final
approval of the budget.
3. The City will strive to develop revenue sources, both new and existing,
which are considered non-tax proceeds in calculating its appropriations
subject to limitation.
4. The City will annually review user fees and charges and report to the
City Council the amount of program subsidy, if any, that is being provided
by the General or Enterprise Funds.
5. The City will actively support legislation or initiatives sponsored or
approved by League of California Cities which would modify Article XIIIB of
the Constitution in a manner which would allow the City to retain projected
tax revenues resulting from growth in the local economy for use as
determined by the City Council.
6. The City shall seek a vote of the public to amend its appropriation limit
at such time that tax proceeds are in excess of allowable limits.
FUND BALANCE AND RESERVES
A. Minimum Fund Balances/Reserves
The City will strive to maintain 30% of annual appropriations in the General
Fund’s Undesignated Fund Balance and cash reserves in the Enterprise Funds
at an optimal level of 30%. This is considered the minimum level necessary
to maintain the City’s credit worthiness and to adequately provide for:
1. Economic uncertainties, local disasters, and other financial hardships or
downturns in the local or national economy.
2. Contingencies for unseen operating or capital needs.
3. Cash flow requirements.
B. Equipment Replacement
For assets, the City will establish and maintain an Equipment Replacement
Fund to provide for the timely replacement of vehicles and capital equipment
with an individual replacement cost of $10,000 or more. The annual
contribution to this fund will generally be based on the annual use
allowance which is determined based on the estimated life of the vehicle or
equipment and its original purchase cost. Interest earnings and sales of
surplus equipment as well as any related damage and insurance recoveries
will be credited to the Equipment Replacement Fund.
C. Information Systems Replacement
The City will maintain an Information Systems Replacement Fund to provide
for the timely replacement of items such as, servers, computers, printers,
phones, faxes, scanners, and digital cameras. The annual contribution to
this fund will generally be based on the annual use allowance which is
determined based on the estimated life of the equipment and its original
purchase cost. Interest earnings and sales of surplus equipment will be
credited to the Information Systems Replacement Fund.
D. Building Replacement
The City will maintain a Building Replacement Fund to provide a funding
source for future facilities. The annual contribution to this fund will
generally be based on square footage. Interest earnings will be credited to
the Building Replacement Fund.
E. Emergency Preparedness Fund
The City will maintain an Emergency Preparedness Fund to enable the City to
be financially prepared to respond to a critical incident or catastrophic
event. Interest earnings will be credited to the Emergency Preparedness
F. Tuition Fund
The City will maintain a Tuition Fund to provide a funding source for
employees to continue their education in order to either maintain or improve
knowledge, skills and professional growth in their current position.
Interest earnings will be credited to the Tuition Fund.
CAPITAL IMPROVEMENT MANAGEMENT
A. CIP Projects - $10,000 or More
Construction projects and equipment purchases which cost $10,000 or more
will be included in the Capital Improvement Plan (CIP); minor capital
outlays of less than $10,000 will be included with the operating program
B. CIP Purpose
The purpose of the CIP is to systematically plan, schedule, and finance
capital projects to ensure cost-effectiveness as well as conformance with
established policies. The CIP is a five-year plan organized into the same
functional groupings used for the operating programs. The CIP will reflect a
balance between capital replacement projects which repair, replace or
enhance existing facilities, equipment or infrastructure; and capital
facility projects which significantly expand or add to the City’s existing
C. Project Manager
Every CIP project will have a project manager who will prepare the project
proposal, ensure that required phases are completed on schedule, authorize
all project expenditures, ensure that all regulations and laws are observed,
and periodically report project status.
D. CIP SubCommittee
Headed by the City Engineer or designee, this Committee will review project
proposals, determine project phasing, recommend project managers, review and
evaluate the draft CIP budget document, and report CIP project progress on
an ongoing basis.
E. CIP Phases
The CIP will emphasize project planning, with projects progressing through
at least two and up to ten of the following phases:
1. Designate. Appropriates funds based on projects designated for funding by
the Council through adoption of the Financial Plan.
2. Study. Concept design, site selection, feasibility analysis, schematic
design, environmental determination, property appraisals, scheduling, grant
application, grant approval, specification preparation for equipment
3. Environmental and development review. EIR preparation, other
environmental studies, and development review processing as required by the
municipal code and state law.
4. Real property acquisitions. Property acquisition for projects, if
5. Site preparation. Demolition, hazardous materials abatements, other
6. Design. Final design, plan and specification preparation, and
construction cost estimation.
7. Construction. Construction contracts.
8. Construction management. Contract project management and inspection,
soils and material tests, other support services during construction.
9. Equipment acquisitions. Vehicles, heavy machinery, computers, office
furnishings, other equipment items acquired and installed independently from
10. Debt service. Installment payments of principal and interest for
completed projected funded through debt financings. Expenditures for this
project phase are included in the Debt Service section of the Financial Plan
and Operating Budget.
Generally, it will become more difficult for a project to move from one
phase to the next. As such, more projects will be studied than will be
designed, and more projects will be designed than will be constructed or
purchased during the term of the CIP.
F. CIP Appropriation
The City’s annual CIP appropriation for study, design, acquisition and/or
construction is based on the projects designated by the Council through
adoption of the budget. Adoption of the budget CIP appropriation does not
automatically authorize funding for specific project phases. This
authorization generally occurs only after the preceding project phase has
been completed and approved by the Council and costs for the succeeding
phases have been fully developed.
Accordingly, project appropriations are generally made when contracts are
awarded. If project costs at the time of bid award are less than the
budgeted amount, the balance will be inappropriate and returned to fund
balance or allocated to another project. If project costs at the time of bid
award are greater than budget amounts, five basic options are available:
1. Eliminate the project.
2. Defer the project for consideration to the next Financial Plan period.
3. Rescope or change the phasing of the project to meet the existing budget.
4. Transfer funding from another specified, lower priority project.
5. Appropriate additional resources as necessary from fund balance.
G. Program Objectives
Project phases will be listed as objectives in the program narratives of the
programs, which manage the projects.
CAPITAL FINANCING AND DEBT MANAGEMENT
A. Capital Financing
1. The City will consider the use of debt financing only for one-time
capital improvement projects and only under the following circumstances.
a. When the project’s useful life will exceed the term of the financing.
b. When project revenues or specific resources will be sufficient to service
the long-term debt.
2. Debt financing will not be considered appropriate for any recurring
purpose such as current operating and maintenance expenditures. The issuance
of short-term instruments such as revenue, tax, or bond anticipation notes
is excluded from this limitation. (See Investment Policy).
3. Capital improvements will be financed primarily through user fees,
service charges, assessments, special taxes, or developer agreements when
benefits can be specifically attributed to users of the facility.
Accordingly, development impact fees should be created and implemented at
levels sufficient to ensure that new development pays its fair share of the
cost of constructing necessary community facilities.
4. Transportation impact fees are a major funding source in financing
transportation system improvements. However, revenues from these fees are
subject to significant fluctuation based on the rate of new development.
Accordingly, the following guidelines will be followed in designing and
building projects funded with transportation impact fees:
a. The availability of transportation impact fees in funding a specific
project will be analyzed on a case-by-case basis as plans and specification
or contract awards are submitted for Council approval.
b. If adequate funds are not available at that time, the Council will make
one of two determinations:
• Defer the project until funds are available.
• Based on the high-priority of the project, advance funds from the General
Fund, which will be reimbursed as soon as funds become available. Repayment
of General Fund advances will be the first use of transportation impact fee
funds when they become available.
5. The City will use the following criteria to evaluate pay-as-you-go versus
long-term financing in funding capital improvements:
Factors Favoring Pay-As-You Go Financing
a. Current revenues and adequate fund balances are available or project
phasing can be accomplished.
b. Existing debt levels adversely affect the City’s credit rating.
c. Market conditions are unstable or present difficulties in marketing.
Factors Favoring Long Term Financing
d. Revenues available for debt service are deemed to be sufficient and
reliable so that long-term financings can be marketed with investment grade
e. The project securing the financing is of the type which will support an
investment grade credit rating or the bonds are a suitable no rated credit
in the case of land secured financings.
f. Market conditions present favorable interest rates and demand for City
g. A project is mandated by state or federal requirements, and resources are
insufficient or unavailable.
h. The project is immediately required to meet or relieve capacity needs and
current resources are insufficient or unavailable.
B. Debt Management
1. The City will not obligate the General Fund to secure long-term
financings except when marketability can be significantly enhanced.
2. An internal feasibility analysis will be prepared for each long-term
financing which analyzes the impact on current and future budgets for debt
service and operations. This analysis will also address the reliability of
revenues to support debt service.
3. The City will conduct financings on a competitive basis for revenue and
general fund debt obligations. Negotiated financing will be used when there
is market volatility, the bonds are non rated, or the financing entails the
use of complex security or structure.
4. The City will seek a rating on any direct debt and will seek credit
enhancements such as letters of credit or bond insurance when it will
improve marketing and is cost effective.
5. The City will monitor all forms of debt annually coincident with the
City’s Financial Plan preparation and review process and report concerns and
remedies, if needed, to the Council.
6. The City will diligently monitor its compliance with bond covenants and
ensure its adherence to federal arbitrage regulations.
7. The City will maintain good, ongoing communications with bond rating
agencies about its financial condition. The City will follow a policy of
full disclosure on every financial report and bond prospectus (Official
C. Debt Capacity
1. General purpose debt capacity. The City will carefully monitor its levels
of general purpose debt. Because our general purpose debt capacity is
limited, it is important that the City only use general purpose debt
financing for high-priority projects where the City can not reasonably use
other financing methods: funds borrowed for a project today are not
available to fund other projects tomorrow; and funds committed for debt
repayment today are not available to fund operations in the future.
2. Enterprise fund debt capacity. The City will set enterprise fund rates at
levels needed to fully cover debt service requirements as well as
operations, maintenance, administration and capital improvement costs. The
ability to afford new debt for enterprise operations will be evaluated as an
integral part of the City’s rate review and setting process.
D. Land-Based Financings
1. Public purpose. There will be a clearly articulated public purpose in
forming an assessment or special tax district in financing public
infrastructure improvements including why this form of financing is
preferred over other funding options such as impact fees, reimbursement
agreements or direct developer responsibility for the improvements.
2. Active Role. Even though land-based financings may be a limited
obligation of the City, we will play an active role in managing the
district. This means that the City will select and retain the financing
team, including the financial advisor, bond counsel, trustee, appraiser,
disclosure counsel, assessment engineer, bond insurer, LOC provider and
underwriter as necessary. Any costs incurred by the City in retaining these
services will be the responsibility of the property owners or developer, and
will be advanced via a deposit or will be paid on a contingency fee basis
from the proceeds from the bonds.
3. Credit quality. When a district is requested by a developer, the City
will carefully evaluate the applicant’s financial plan and ability to carry
the project, including the payment of assessments and special taxes during
build-out. This may include detailed background, credit and lender checks,
and the preparation of independent appraisal reports and market absorption
4. Reserve fund. A reserve fund should be established in the lesser amount
of: the maximum annual debt service; 125% of the annual average debt
service; or 10% of the bond proceeds.
5. Value-to-debt ratios. The minimum value-to-debt ratio should generally be
3:1. This means the value of the property in the district, with the public
improvements, should be at least three times the amount of the assessment or
special tax debt.
6. Capitalized interest during construction. Decisions to capitalize
interest will be made on a case-by-case basis, with the intent to fund
interest in cases were the payment cannot be posted to the tax roll for that
7. Maximum burden. Annual assessments (or special taxes in the case of
Mello-Roos or similar districts) should generally not exceed 1% of the sales
price of the property; and total property taxes, special assessments and
special tax payments collected on the tax roll should generally not exceed
8. Benefit apportionment. Assessments and special taxes will be apportioned
according to a formula that is clear, understandable, equitable and
reasonably related to the benefit received by – or burden attributed to –
each parcel with respect to its financed improvement.
9. Special tax district administration. In the case of Mello-Roos or similar
special tax districts, the total maximum annual tax should not exceed 110%
of annual debt service. The rate and method of apportionment should include
a back-up tax in the event of significant changes from the initial
development plan, and should include procedures for prepayments.
10. Foreclosure covenants. In administration of the district, the City shall
structure foreclosure covenants in such a way as to insure the delinquency
data is available from the county or the administrator prior to having to
commence foreclosure proceedings.
11. Disclosure to bondholders. In general, each property owner who accounts
for more than 25% of the annual debt service or bonded indebtedness must
provide ongoing disclosure information annually as described under SEC Rule
E. Conduit Financings
1. The City will consider requests for conduit financing on a case-by-case
basis using the following criteria:
a. The City’s bond counsel will review the terms of the financing, and
render an opinion that there will be no liability to the City in issuing the
bonds on behalf of the applicant.
b. There is a clearly articulated public purpose in providing the conduit
c. The applicant is capable of achieving this public purpose.
2. This means that the review of requests for conduit financing will
generally be a two-step process: first asking the Council if they are
interested in considering the request, and establishing the ground rules for
evaluating it; and then returning with the results of this evaluation, and
recommending approval of appropriate financing documents if warranted. This
two-step approach ensures that the issues are clear for both the City and
applicant, and that key policy questions are answered.
3. The work scope necessary to address these issues will vary from request
to request, and will have to be determined on a case-by-case basis.
Additionally, the City should generally be fully reimbursed for our costs in
evaluating the request; however, this should also be determined on a
HUMAN RESOURCE MANAGEMENT
A. Regular Staffing
1. The budget will fully appropriate the resources needed for authorized
regular staffing and will limit programs to the regular staffing authorized.
2. Regular employees will be the core work force and the preferred means of
staffing ongoing, year-round program activities that should be performed by
full-time City employees rather than independent contractors. The City will
strive to provide competitive compensation and benefit schedules for its
authorized regular work force. Each regular employee will:
a. Fill an authorized regular position.
b. Be assigned to an appropriate bargaining unit.
c. Receive salary and benefits consistent with labor agreements or other
3. To manage the growth of the regular work force and overall staffing
costs, the City will follow these procedures:
a. The City Council will authorize all regular positions.
b. The Human Resources Division will coordinate and oversee the hiring of
all regular and temporary employees.
c. All requests for additional regular positions will include evaluations
• The necessity, term and expected results of the proposed activity.
• Staffing and materials costs including salary, benefits, equipment,
uniforms, clerical support and facilities.
• The ability of private industry to provide the proposed service.
• Additional revenues or cost savings, which may be realized.
4. Periodically, and before any request for additional regular positions,
programs will be evaluated to determine if they can be accomplished with
fewer regular employees.
B. Limited Service
1. The hiring of limited service employees will not be used as an
incremental method for expanding the City’s regular work force.
2. Limited services positions include all employees other than regular
employees, elected officials, and volunteers. Limited service positions will
generally augment regular City staffing as hourly, temporary, limited
part-time, intermittent, student, intern, emergency, and seasonal positions.
3. The City Manager and Department Heads will encourage the use of limited
service rather than regular employees to meet peak workload requirements,
fill interim vacancies, and accomplish tasks where less than full-time,
year-round staffing is required. Under this guideline, limited service
employee hours will generally not exceed 50% of a regular, full-time
position (1,000 hours per fiscal year ). There may be limited circumstances
where the use of limited service employees on an ongoing basis in excess of
this target may be appropriate due to unique programming or staffing
requirements. However, any such exceptions must be approved by the City
4. Contract employees are defined as limited service employees with written
contracts approved by the City Manager who may receive approved benefits
depending on hourly requirements and the length of their contract. Contract
employees will generally be used for medium-term (generally between six
months and two years) projects, programs or activities requiring specialized
or augmented levels of staffing for a specific period. The services of
contract employees will be discontinued upon completion of the assigned
project, program or activity. Accordingly, contract employees will not be
used for services that are anticipated to be delivered on an ongoing basis.