FINANCIAL POLICIES
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 revenues sources. The first two years of the forecast form the foundation for the City’s two-year 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 st and ends on June 30 th . 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 st or earlier. The biennial budget is adopted by the City Council on or before June 30 th following a public meeting where constituents are given an opportunity to comment on the Proposed Budget. During the Mid-Cycle budget review at the end of the first fiscal year, staff presents to the City Council any necessary adjustments to the second-year budget based on additional outside funding received, or major changes in revenues or expenditures (in excess of 3% 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. The City Manager is authorized to make other budgetary adjustments. 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 forward, at City Council’s discretion, into the next fiscal year to support such activities/purchases. At the end of the first year of the two-year budget, departments with savings will have the opportunity to carry over unspent discretionary funds to the second year, barring any significant unforeseen revenue shortfalls or unanticipated demands. Similarly, departments that overspend in the first year would effectively see their second-year allocations reduced by the amount of overspending. At the end of the second year, departments with savings will have the opportunity to retain 50 percent of the unused funds for capital or other one-time needs, barring any
514
FY 2019-21 Proposed Budget
Made with FlippingBook Learn more on our blog