RES 2006-35 BUDGET POLICIES FOR PREPARATION OF 2007 CITY BUDGETRESOLUTION NO. 2006-35
A RESOLUTION of the City of Bainbridge Island,
Washington, establishing Budget Policies for the
preparation of the 2007 City Budget
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, DOES HEARBY RESOLVE AS FOLLOWS:
WHEREAS, the City Council has discussed and proposed Budget Policies for the
preparation of the 2007 Budget; Now Therefore let it be resolved that the following are
adopted as some of those policies, other policies that were adopted but are not included in
this resolution, as well as other policies that are still under discussion and may be adopted
in future Budget Workshops, will be adopted in a separate Resolution.
We present these as guidelines for the preparation of the budget and we understand
circumstances may arise, that requests may be made that exceed these guidelines and will
be considered by Council.
1. Ongoing operations will be funded by ongoing revenues, not one time monies.
2. The City shall maintain reserves according to Resolution 2004-04.
3. In Utility Funds, working capital will be equal to three months of operating
expenditures.
4. The outstanding debt obligations of the City will not exceed 75 % of statutory limits.
5. The budget shall be built on an understanding of the Priorities of Government as
updated annually by the City Council.
6. The City will maintain utility rates adequate to ensure that each utility segment is
fully self-supporting.
7. The City shall maintain a structure for all fees and charges where the beneficiary of
the service pays the cost of that service except to the extent that the City Council has
determined that provision of the specific service in question provides a general public
benefit.
8. Revenues shall belong to the City as a whole - subject to legal restrictions.
9. Revenues from the City Parking Lot and Commercial Parking Lot Tax shall be
designated at 50% to the Non -Motorized Transportation Program and 50% to the
Roads Program.
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10. REET revenues shall be estimated based on an analysis of the prior three years, the
general economy, interest rates and the general condition of the real estate market on
Bainbridge Island.
11. Building and Development Services revenues shall be estimated based on an analysis
of the prior three years, the general economy, interest rates and the general condition
of the real estate market on Bainbridge Island as it relates to construction with
consideration given for known and expected projects.
12. The City intends to replace all of its capital equipment based on a schedule relative to
safety, cost and available revenues within defined equipment categories.
13. The City shall allocate at least $800,000 of its own money to help fund Roads
projects and at least $800,000 of its own money to help fund Non -Motorized projects
annually.
14. Capital projects shall typically not be funded with recurring revenues that have not
been leveraged to a very substantial extent with long-term debt, capital leases, and
capital grants, as well as other public or private sources of funds, while maintaining a
prudent level of debt service over time.
15. The City shall typically use a wide range of funding sources to pay for capital
projects in its CFP and the extent to which different funding sources are used shall be
within the ranges established by the City Council.
PASSED by the City Council this day of July, 2006
APPROVED by the Mayor this day of July, 2006
ATTEST/AUTHENTICATE:
usan P. Kasper, City Clerk
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL
RESOLUTION NO.: 2006-35
Darlene Kordonowy, Mayor
July 5, 2006
July 12, 2006
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