FINANCIAL POLICIES
BUDGET GUIDELINES
The City of Irvine takes seriously its responsibility to stay accountable with the taxpayer dollars. The City’s budget is a critical vehicle in meeting this taxpayer accountability. The City’s budgeting guidelines presented in this section provide a framework for a thoughtful and responsible development of the City’s budget, in compliance with relevant City p olicies as well as various laws and regulations. Budget Forecasting The City shall develop and maintain methods of forecasting future revenues and expenditures. These methods shall project the City’s future revenues and expenditures through a variety of methods including, but not limited to, forecasts of the economy and future development of the City.
City staff, under the guidance of the Budget Office, will estimate revenues using an objective and analytical process, as well as documenting and maintaining specific assumptions. In instances where there is uncertainty as to assumptions, conservative revenue projections shall be provided. Revenues The City will strive to maintain a diversified and stable revenue system to provide protection from short- run fluctuations in any single revenue source to promote consistent service levels. The City shall strive to improve its tax collection rate through legislative initiative and advocacy at the state level and cooperative effort at the county level. Intergovernmental assistance shall be used to finance only those capital improvements that are consistent with the capital improvement plan and local government priorities, and whose operation and maintenance costs have been included in operating budget forecasts. Programs and services funded by restricted revenue will be clearly designated as such. Restricted revenue shall only be used for the purposes legally permissible and in a fiscally responsible manner. Restricted revenues shall be used prior to unrestricted revenue as legally permissible. The portion of revenue from development fees that supports citywide overhead costs shall be classified as a General Purpose Revenue and identified as General Fund Revenue Transfers-In and be used to offset General Fund overhead costs. Recognizing some development fees are collected in advance of the work being performed and revenue collected in the prior year funds current expenses, a budget and accounting methodology for the recognition and deferral of Development Fees is necessary. By recognizing and deferring Development Fees on an established basis, the revenue activity will be more accurate relative to the revenue budget. The Development Fee deferred revenues from the prior fiscal year will be recognized and posted to the appropriate current year revenue accounts during the new fiscal year. At the end of each fiscal year, Community Development and Public Works staff will provide an estimate to Fiscal Services for the fee amount and accounts collected during the year that should be deferred to the next fiscal year. Fiscal Services will process journal entries recognizing prior year deferred revenues and deferring appropriate current year revenues as appropriate. At the end of each fiscal year, the total amount deferred will be reallocated to the next fiscal year.
FY 2023-25 Adopted Budget
449
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