SR 06:127 - Laserfiche WebLink

Balanced Budget Despite State recession impacts on City finances in the last five years, Pleasanton has still been able to maintain a balanced budget annually, while maintaining service levels and making significant contributions to capital projects. The City was able to accomplish this through prudent financial management and efficient service delivery. To ensure the City's long-term fiscal health and to minimize future burdens on the City's resources and taxpayers, a balanced budget is essential. To ensure a balanced budget, the City must use its current resources to meet current obligations and make sure that operating fund debt is minimized. In addition, future costs such as asset replacements must be recognized and funded like current expenses. To aid the City in structuring a balanced budget, regular review must be performed to allow revenue sources to be properly identified and matched with their intended purposes. The balancing of future budgets will be facilitated by the City setting aside funding for obligations when they are incurred. For example, as assets are being used, their depreciation should be recognized as an expense, and dollars set aside to ensure adequate funding is available at the appropriate future time. The City can lessen the burden on future taxpayers by utilizing debt only for acquiring long-term capital and when it is cost effective. Reserves must be established for both known and unknown future obligations. The City must continue to search for the most cost effective means of delivering services, including managing labor cost growth so it does not outpace revenue growth. Accompanying this, the City must also continue to refine and improve its budget process. To support the City's goal of fiscal sustainability, changes to the Element ensure a balanced budget and address specific concerns for the City's long-term fiscal health. A program was added that requires the City to fund at least its normal PERS (Public Employees Retirement System) costs annually, and to transfer any excess to a reserve to offset future increases above its normal costs. Furthermore, an existing program was changed to decrease the recommended upper limit of the General Fund debt ratio from 10% to 5% except as otherwise determined by the City Council. This means that General Fund revenues pledged to make annual debt payments should total no more than XI-9