RES 1156\\%RESOLUTION NO.
A RESOLUTION adopting financial goals and policies for
management of city funds.
WHEREAS,the City Finance Department has prepared a document entitled “City of
Camas Financial Goals and Policies”,which sets forth a fiscal guideline for management of city
funds,and
WHEREAS,the City Council has reviewed said document and has determined that the
City’s interests will be furthered by adoption of such goals and policies,
NOW,THEREFORE,be it resolved by the Council of the City of Camas as follows:
Section I
There is hereby adopted as the official guidelines for the fiscal management of the City’s
funds that certain document entitled “City of Camas Financial Goals and Policies”,a copy of
which is attached hereto and by this reference incorporated herein.
ADOPTED by the Council at a regular meeting this ay of July,2009.
SIGNED:
ATTEST:
APPROVED as to form:
/C
City Attorney
City of Camas
Financial Goals and Policies
1.General Fund Fund Balance
2.Long-range forecasting
3.Debt Management
4.Budget
5.Grants
6.Utility Operations
7.Real Estate Excise Taxes
8.Technologies and System Maintenance and Replacement
9.Equipment Rental
10.Emergency Rescue Fund
11.Firemen’s Pension Fund
12.Capital Facilities Plan
13.Accounting Procedures
14.Cash and Investments
1.General Fund Fund Balance
Goal:The General Fund will strive to maintain a fund balance of 17%of
budgeted General Fund expenditures.
To mitigate current and future revenue shortfalls,unanticipated expenditures,and
cash flow needs due to the General Fund dependence on property taxes,an
adequate fund balance in the General Fund will be maintained.The projected
fund balance at year end is expected to remain at 17%of annual budgeted
General Fund expenditures.
Total General
Fund Expenditures
17%of
Expenditures
Actual at
December 31Year
2000 $12,142,952
10,973,687
11,800,896
12,135,806
11,990,300
12,773,803
14 ,047,280
15,216,382
15,697,049
15,987,061
$2,064 ,302
1,865,527
2,006,152
2,063,087
2,038,351
2,171 ,546
2,388,038
2,586,785
2,668,498
2,717,800
$1,670,060
2,176,597
2,276,309
2,662,618
3,465,119
4,485,639
4,801,484
4,030,330
3,485,979
2,900,000 est
2001
2002
2003
2004
2005
2006
2007
2008
2009
2.Long-range Forecasting
Goal:A long-range forecasting of revenues and expenditures fora future three-
year period will be done each year by August 1.
A financial plan that assesses long-term financial implications of current and
proposed programs assists the city in developing strategies to achieve its goals.
A key component is the forecasting of revenues and expenditures.As part of the
budget process each year,by August 1 a long-range forecast of operating
revenues and expenditures for the General Fund,Street Fund,Cemetery Fund,
Emergency Rescue Fund and the utility funds will be developed for a three-year
period beyond the current budget period.The underlying assumptions should be
clearly stated.The forecast will be included in the final budget document that is
adopted by ordinance.
3.Debt Management
Goal:General obligation and revenue debt will only be issued for capital needs
and structured to limit financing costs and future commitments.
Long-term debt will only be issued for real property,or capital projects and capital
acquisitions with a life greater than three years.Long-term debt will not be issued
to finance current operations.The maturity of long-term debt will be equal to or
less than the expected life of the project or acquisition,and no longer than 20
years.In some utility infrastructure financing,a 30 year financing term may be
considered.
Interfund borrowing for short-term cash flow needs should be considered over
external borrowing for terms less than two years.A resolution adopted by the
council will approve and detail the terms of the borrowing.
Loans from state agencies with favored interest rates and repayment terms
should be considered whenever possible.The funding source for repayment of
the loan shall be indicated.
The bond coverage is detailed in each revenue bond issue.The current
requirement is gross revenues less operation and maintenance costs before
depreciation equate to at least 1.25 times the maximum annual debt service.
Debt Service Coverage
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
1.89
2.18
2.89
2.71
3.81
3.56
2
12/31/06
12/31/07
12/31/08
12/31/09
3.13
2.16
1.87
1.60 est.
At the first optional redemption date for each general obligation or revenue bond
issue,(usually ten years after issuance)an analysis will be done to determine if
exercising a call would be financially prudent at that time.If the bonds are not
called at that time,this analysis will continue at least every two years.
The city will comply with IRS arbitrage regulations for bond issues,document the
compliance and maintain files of documentation until 3 years after the bonds are
matured.
All debt service obligations will be detailed in the Comprehensive Annual
Financial Report and the annual budget document.
4.Budget
Goal:A comprehensive annual budget will be adopted that includes a concise
summary of key issues and aspects of operating costs and capital components.
A detailed budget document disclosing all anticipated revenues and authorized
appropriations for operating and capital expenditures will be prepared and
published.The budget establishes the level of services to be provided by each
department.The budget will include title of each employee position funded,
number of staff in each position and full-time equivalents.Expenditures will be
monitored through the accounting system with monthly reports to assure
budgetary compliance.
Discretionary revenues received on a one-time basis will be used to increase fund
reserves,or used for capital expenditures or other uses that are not dependent on
ongoing revenues,and will not be used for operating expenditures.
The budget summary will disclose significant changes in priorities or service
levels,identify major financial factors including future debt obligations,use of fund
balance,list major capital projects,and disclose if the budget is balanced or not,
The proposed annual budget will be presented on the city website for better
communication of financial information to citizens and other interested parties at
least two weeks before the public hearing.The adopted budget will be available
on the city website before the new fiscal year begins.
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5.Grants
Goal:Grants will be sought to support the city’s programs.
Grants will be sought to supplement existing programs,which support the city’s
plans and goals and objectives.Grants that require a local match will be carefully
considered before each application is submitted.The City Administrator will be
consulted and the Finance Department will be given a copy to review before the
application is submitted.Grants that are funded to the city as a cost
reimbursement grant will be analyzed to determine if cash flow needs can be met.
The grant accounting and financial reporting will be done by the Finance
Department.
The City will comply with the Common Rule,an attachment to Office of
Management and Budget (OMB)Circular A-102,which sets forth uniform
requirements for grants to local governments.This requires the city’s financial
management system to meet certain standards for financial reporting,accounting
records,internal control,budgeting,allowable costs,documentation,and cash
management.In addition,expenditures of federal grants and costs claimed for
reimbursement or used for matching,must be in compliance with OMB Circular A-
87,Cost Principles for State and Local Governments.
6.Utility Operations (Water/Sewer,Garbage,Stormwater)
Goal:User rates and system development charges will finance all operations,
capital and debt service for utility functions.
Goal:A rate study of utility rates and system development charges will be
completed at least every 5 years to determine if applicable rates and
miscellaneous charges meet operating costs,debt obligations and provide
adequate reserve levels.
All costs of providing utility services including maintenance,depreciation,and
debt service requirements shall be financed through user rates.Capital
construction will primarily be financed by system development charges,or
favorable rate governmental loans or revenue bond proceeds,if needed.Annual
review of the user rates will be done by staff or an independent consultant by July
1st each year.
Goal:To mitigate current and future revenue shortfalls and unanticipated
expenses,retained earnings of at least 90 days of operating expenses will be
maintained in the water/sewer utility.
Revenue bond ordinances require retained earnings,cash and investments in the
water/sewer bond reserve fund will be equal or greater to the highest annual debt
service requirement.Interest earnings that accumulate in this fund above the
highest annual debt service may be transferred periodically to the water/sewer
operating fund.
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Goal:Cash and investments of a minimum of $500,000 should be retained for
emergency capital repairs or other unforeseen events in the Water/Sewer Capital
Reserve Fund.
Water/sewer system development charges are accumulated in the Water/Sewer
Capital Reserve fund for future capital construction.Below is the balance of
available capital:
Water/Sewer
Cash and Investments
Water/Sewer Capital
Reserve at Dec 31
$4,494,270
$2,676,892
$1,161,697
$641,280
$637,212
$1,237,231
$880,370
$1,231,913
$115,859
$100,000 est.
$5,694,270
$2,566,411
$2,119,147
$1,399,523
$1,200,658
$1,595,122
$1,039,280
$1,234,957
$118,903
$225,000 est.
12/31/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
12/31/09
7.Real Estate Excise Taxes
Goal:The Capital Facility Plan will detail intended uses of Real Estate Excise
Taxes.
The first quarter of one percent (.25%)of the real estate excise tax (REET 1)must
be used solely on capital projects that are listed in the capital facilities plan
element of the City’s comprehensive plan.Capital projects are defined in RCW
82.46.010 as:“those public works projects of a local government for planning,
acquisition,construction,reconstruction,repair,replacement,rehabilitation,or
improvement of streets;roads;highways;sidewalks;street and road lighting
systems;traffic signals,bridges,domestic water systems;storm and sanitary
sewer systems;parks;recreational facilities;law enforcement facilities;fire
protection facilities;trails;libraries;administrative and judicial facilities....”
REET 1 Expenses
$279,664 $909,541 $97,822
$402,042 $499,864 $
$409,054 $346,159 $62,895
$833,701 $886,625 $
$651,156 $301,057 $360,070
$895,205 $222,160 $1,033,115
$830,603 $2,703,297 $230,724
$569,337 $1,015,037 $234,000
$364,622 $423,986 $680,170 $3,423,000
Receipts Balance Pledged
12/30/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
0
9,971
Goal:Revenue from the second quarter of the Real Estate Excise Tax will be
dedicated primarily to park improvements.
5
The second quarter of one percent (.25%)of the real estate excise tax (REET 2)
capital projects are defined in RCW 82.46.035 as:“those public works of a local
government for planning,acquisition,construction,reconstruction,repair,
replacement,rehabilitation,or improvement of streets,roads,highways,
sidewalks,street and road lighting systems,traffic signals,bridges,domestic
water systems,storm and sanitary sewer systems,and planning,construction,
reconstruction,repair,rehabilitation,or improvement of parks.”The acquisition of
land for parks is not permitted.
REET 2
12/30/00
12/31/01
12/31/02
12/31/03
12/31/04
12/31/05
12/31/06
12/31/07
12/31/08
Receipts Expenses
$273,664 $
$413,857 $330,000
$417,211 $494,708
$519,815 $
$667,433 $183,077
$896,419 $1,036,240
$866,147 $333,663
$648,673 $753,621
$364,622 $640,799
Balance Pledged
$273,196
$357,052
$279,556
$799,371
$1,283,427
$1,143,607
$1,676,091
$1,571,143
$1,428,244
0
0
$862,895
8.Technologies and System B/laintenance and Replacement
Goal:The city will strive to provide quality,up-to-date networking technologies,
maintain secure and accurate data,and provide efficient,reliable tools and
resources for a productive working environment.
The Information Systems Division oversees and maintains a replacement plan for
the City’s technologies including the following criteria:
Networking,telecommunications and other hardware resources are
maintained or replaced using current warranty and depreciation
measures.Strive to replace 20%of the City’s technology resources
annually.
System resources including operating and other system software,
database applications,and desktop applications are upgraded and
maintained to meet the technology needs of the organization and the
best fit for departmental service plans.
Technology equipment necessary for the utility operations and Emergency
Rescue funds will be planned by the Information System Department,but funded
out of their respective funds.
9.Equipment Rental
Goal:The Equipment Rental Fund will maintain rental rates sufficient to coverall
operating costs and replacement reserve.
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Equipment rental rates will be sufficient to cover operating and maintenance
costs,property and liability insurance coverage,plus depreciation and to establish
a reserve sufficient to replace vehicles and equipment at the end of their useful
lives.The reserve will include estimated replacement cost of vehicles and
equipment,recognizing that replacement costs often escalate.Rates will be
adopted by resolution and will be reviewed at least annually to determine if
revenues cover all costs.
Equipment is depreciated over its estimated useful life.Below is a listing of the
general categories of equipment and their estimated lives:
Vehicle Type
Dump Truck
Pick-up Truck
Tractors
Sweepers
General automobiles
Police patrol vehicles
Sewer Cleaners
Mowers
Sanitation Trucks
Police Scooter
Fire Engine
Ambulances
Estimated Life
6 -10 years
6 -7 years
7 -10 years
5 -7 years
5 -9 years
3 years
8 years
4 -7.5 years
10 years
6 years
20 years*
12 years*
*Information only,not accounted for in the Equipment Rental Fund
10.Emergency Rescue Operations
Goal:The Emergency Rescue Fund will be self-supporting for all capital and
operating expenses associated with providing Advanced Life Support ambulance
transport services within the participating jurisdictions.
The Emergency Rescue Fund (Rescue Fund)was created in 1970 by Ordinance
1161.A Emergency Management Service (EMS)agreement between the City of
Camas,City of Washougal,and East County Fire and Rescue provides for
advanced life support ambulance transport service to all persons within the
boundaries of these districts.The ambulance service area encompasses about
95 sq.mi.of southeastern Clark County and a population of about 45,000
residents.Emergency ambulance transport services from locations within the
ambulance service area are provided to the closest available and appropriate
medical facility.
Goal:The council in collaboration with EMS partner jurisdictions will determine
the special tax levy rate to ask the voters to support the emergency services
function,including operating and replacement costs for ambulances and
equipment.
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Voted Levy
Approved Through
Camas
Washougal
ECFR
2012
2010
2015
Goal:The property tax levy will be designed to support 50%or more of the
operating and capital expenses.
Percent Levy
Covered Expenses
2000 49%
2001 49%
2002 63%
2003 54%
2004 59%
2005 62%
2006 61%
2007 63%
2008 65%
2009 62%est.
Goal:Strive for minimum of 12%of Emergency Rescue Fund annual
expenditures to be maintained in the Emergency Rescue Fund fund balance to
accommodate for liquidity and cash flow needs during the year when property tax
revenue collection is low.
Actual Fund Balance
Percentage of
Expenditures
Total Emergency Goal:12%of
Year Rescue Expenditures Expenditures
Actual Fund
Balance
2000 $1,463,349
$1,665,683
$1,398,230
$1,662,227
$1,557,424
$1,598,444
$1,727,625
$2,374,255
$2,318,577
$3,291,480*
$175,602
$199,882
$167,788
$199,467
$186,891
$191,813
$207,315
$284,911
$278,229
$394,978
$537,286
$292,315
$511,294
$585,403
$222,690
$277,231
37%
2001 18%
2002 37%
2003 35%
2004 14%
2005 17%
2006 $389,207
$180,992
$163,558
23%
2007 8%
2008 7%
2009
*Budgeted Expenses
Ambulance fees will be reviewed at least every 2 years to assure these rates and
the tax levy meet amortized capital and annual operating costs.Write-off of
uncollectible accounts will occur routinely and systematically following the
Ambulance Billing and Collection Policy.
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Contributions to the General Fund for its accounting and administration support
services will be calculated using the same process as is used by other funds to
contribute to the General Fund.
Contribution to the
General Fund
$120,000
$123,600
$77,600
$80,000
$96,000
$98,800
$101,846
$105,000
$108,000
$111,240
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Goal:EMS Fund will strive to replace ambulance chassis’every six years and the
complete ambulance will be replaced every twelve years.
Currently,a fleet of three primary transport ambulances and one reserve
ambulance is maintained to provide transport ambulance services.Ambulance
chassis are replaced on a 6-year cycle.Chassis mileage at replacement is about
130,000 miles.Patient compartments are refurbished at 6 years when the
chassis is replaced and complete ambulances are replaced at 12 years.In 2009
dollars,a new ambulance is about $150,000 and patient compartment
refurbishing and chassis replacement cost is about $90,000.
11.Firemen’s Pension Fund
Goal:The Firemen’s Pension Fund assets will be sufficient to coverall benefit
obligations for retirees and their beneficiaries.
Chapter 41.16 RCW required the establishment of a Firemen’s Pension Fund for
firefighters hired prior to March 1,1970.Cash and investments in this fund will be
sufficient to cover all benefit obligations for retirees and their beneficiaries.All
investment earnings will be retained in this fund.The annual fire insurance
premium tax from the state will also be deposited into this fund.
12.Capital Facilities Plan
Goal:The Capital Facilities Plan will be comprehensive and updated every two
years.
As part of the Growth Management Act Comprehensive Plan,the City will adopt a
Capital Facilities Plan element and update and extend it not less frequently than
two years and adopted prior to August 1.This plan is a long-range plan that will
9
forecast facility needs and requirements citywide for each year for the next six
years,and then project additional needs for the next 14 years for a total of a
twenty-year forecast.It will also forecast projected revenues and resources
required to finance the capital improvement plans.In addition to facilities listed in
the plan,it will include projections for major equipment requirements valued over
$50,000.
Before a capital facility is approved and budgeted for construction or remodeling
impacts of annual operating costs of the new or expanded facility will be
estimated and disclosed.
13.Accounting Procedures
Goal:The city’s accounting principles will follow General Accepted Accounting
Principles.
The city will maintain a high standard of accounting practices and follow General
Accepted Accounting Principles (GAAP)for its accounting procedures and
financial statement presentation.The city will comply with the Washington State
Budgeting,Accounting and Reporting System (BARS)manual prescribed by the
Washington State Auditors Office.Each year the city will prepare and publish a
Comprehensive Annual Financial Report (CAFR)in addition to the annual report
required by the BARS manual.The CAFR will be presented on the city website
each year for better communicating financial information to citizens and other
interested parties.
14.Cash and Investments
Goal:The city’s investment program will maximize the security of pnncipal while
conforming to state statutes.
The city will conform to state statutes that govern the investment of public funds.
Cash will be invested in a diverse portfolio and in a manner that will provide the
maximum security with the best investment return.Sufficient cash shall be
maintained to provide adequate funds for current operating expenditures before
cash is invested.A formal investment policy adopted by resolution will guide the
management of the portfolio.A review of this policy will be completed every three
years and updated accordingly.
Bank account fraud protection measures will be used to the extent that the cost
does not exceed the benefit.Consideration of using fraud protection features by
the bank will be implemented if the fees are reasonable.Reconciliation of bank
statements will be done each month and reconciled by an employee that has no
authorization to write checks,
Cash collected will be deposited daily into the city’s bank account and all
electronic transactions will be reconciled and documented daily.Two party
authorizations will be required for all wire and ACH transactions over $500,000.
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