FINANCIAL POLICIES
FISCAL POLICY STATEMENT
To foster a culture of long-term fiscal sustainability, the Irvine City Council has adopted a number of fiscal policies. These policies set a framework to ensure a balanced budget, maintain healthy reserves, appropriately fund the City’s infrastructure needs, and set fees and charges within permitted subsidy thresholds. The Government Finance Officers Association (GFOA) recommends that governments formally adopt financial policies, place the policies in the same sections of the budget document and monitor, review, and update in a systematic way.
The following policies are included in this document:
A. Long-Term Financial Planning The City of Irvine is committed to long-term comprehensive financial planning.
The City prepares and publicly presents, during the budget development process, a detailed five- year forecast that includes an analysis of key revenues and expenditures, and proposed measures to address any projected gaps. The forecast is prepared for the General Fund, Great Park funds, Capital funds, and other key revenue sources. The first two years of the forecast form the foundation for the City’s biennial budget. B. Biennial Budget The City adopts a biennial budget, developed in the context of the five-year financial plan. The following are key elements of the City’s biennial budget: The City’s Fiscal Year starts on July 1 and ends on June 30. Budgetary appropriations are made by the City Council, through budget adoption, for two full fiscal years, broken out into one-year increments. The City Manager submits the Proposed Budget to the City Council at least 30 days prior to the beginning of each biennial budget cycle, i.e. by June 1 or earlier. The biennial budget is adopted by the City Council on or before June 30 following a public meeting where constituents are given an opportunity to comment on the Proposed Budget. During the budget review at the end of the first fiscal year (the Mid-Cycle), staff presents to the City Council any necessary adjustments to the second-year budget. The adjustments are based on additional funding reviewing, or major changes in revenues or expenditures in excess of two percent of General Fund appropriations. During the fiscal year, any necessary budget adjustments that cannot wait for the Mid-Cycle review or the subsequent budget process, may occur at any City Council meeting, at the request of staff. The City Council approves any revisions that increases the total budgeted expenditures or revenues of any department and fund, and any changes to permanent and full-time positions. In instances where specific activities/purchases are authorized by the City Council in a certain fiscal year and remain incomplete and/or unexpended, revenues and/or fund balance may be carried forw ard, at City Council’s discretion, into the next fiscal year to support such activities/purchases.
FY 2023-25 Adopted Budget
453
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