From
Diana G. Ortiz
Title
Resolution approving the city's Financial Management Policy updated with clarification and edited modifications
Presenter
Diana G. Ortiz, Chief Financial Officer
Recommended Action
Approve
Analysis
The City's Financial Management Policy is a formally approved document that serves as the guidelines and parameters in developing the City's financial position. It is reviewed annually for necessary updates and presented to the Finance and Government Committee for consideration. This committee reviewed this item and recommends this policy with corrective edits and/or processes in the approved budget. The following items are identified and clarified with edited corrections:
- VI. REVENUE MANAGEMENT, I. PROPERTY TAX REVENUES:
"Property shall be assessed at 100% of the taxable appraised market value...."; and,
"A 99% 98.5% collection rate will serve as a minimum for tax collections with a delinquency rate of 1% 1.5% or less." and,
"The 99% 98.5% rate is calculated by dividing total current year tax collections for a fiscal year by the total tax levy for the fiscal year."
J. PARKS AND RECREATION VENUE SALES TAX REVENUE: "At least 50.01% of the revenue will be dedicated to capital expenditures and debt service for Parks and Recreation System improvements and for associated reserves."
- VII. EXPENDITURE CONTROLS: the sections A., B. and D. below contain "Administrative Directive 3..." and is replaced with "...the City Manager's approved policies."
A. APPROPRIATIONS,
B. VACANCY SAVINGS AND CONTINGENCY ACCOUNT,
D. CENTRAL CONTROL
I. INFORMATION TECHNOLOGY:
"Certain information tecnology acquisitions will be centrally funded from the Information Technology (I/T) Capital Project Fund."; and,
"Annual funding of between $250,000 and $500,000 for replacements and between $250,000 and $500,000 for new technology will be provided through transfers from the major operating funds (General Fund and Water/Wastewater Fund, Solid Waste Fund and Parks and Recreation Venue Fund) based on the relative amount of their budgeted ending resources.
- XII. GRANTS, J. SECTION 8 OPERATING RESERVES:
"d. Amounts in excess of the $250,000 minimum reserve and contingency account may be used for housing-related projects implemented by the Housing and Community Neighborhood Services Department (HNS HCD) and approved by the City Council."; and,
"e. ...in the judgement of the HNS HCD Director and the City Council,..."
K. CDBG PROGRAMS - City Council approval shall be required to add to any new activity after adoption of the final budget."
Financial Consideration
There is no fiscal impact.
Body
A RESOLUTION OF THE CITY OF GRAND PRAIRIE, TEXAS, APPROVING THE CITY'S FINANCIAL MANAGEMENT POLICY
Whereas, it is the goal of the City to maintain a long-term, stable and positive financial condition; and
Whereas, well-planned and prudent financial management is essential to the achievement of the City's goal; and
Whereas, the Finance and Government Committee reviewed the Financial Management Policy with the following revisions:
- VI. REVENUE MANAGEMENT, I. PROPERTY TAX REVENUES:
"Property shall be assessed at 100% of the taxable appraised market value...."; and,
"A 99% 98.5% collection rate will serve as a minimum for tax collections with a delinquency rate of 1% 1.5% or less." and,
"The 99% 98.5% rate is calculated by dividing total current year tax collections for a fiscal year by the total tax levy for the fiscal year."
J. PARKS AND RECREATION VENUE SALES TAX REVENUE: "At least 50.01% of the revenue will be dedicated to capital expenditures and debt service for Parks and Recreation System improvements and for associated reserves."
- VII. EXPENDITURE CONTROLS, the sections A., B. and D. below contain "Administrative Directive 3..." and is replaced with "...the City Manager's approved policies."
A. APPROPRIATIONS,
B. VACANCY SAVINGS AND CONTINGENCY ACCOUNT,
D. CENTRAL CONTROL
I. INFORMATION TECHNOLOGY:
"Certain information tecnology acquisitions will be centrally funded from the Information Technology (I/T) Capital Project Fund."; and,
"Annual funding of between $250,000 and $500,000 for replacements and between $250,000 and $500,000 for new technology will be provided through transfers from the major operating funds (General Fund and Water/Wastewater Fund, Solid Waste Fund and Parks and Recreation Venue Fund) based on the relative amount of their budgeted ending resources.
- XII. GRANTS, J. SECTION 8 OPERATING RESERVES:
"d. Amounts in excess of the $250,000 minimum reserve and contingency account may be used for housing-related projects implemented by the Housing and Community Neighborhood Services Department (HNS HCD) and approved by the City Council."; and,
"e. ...in the judgement of the HNS HCD Director and the City Council,..."
K. CDBG PROGRAMS - City Council approval shall be required to add to any new activity after adoption of the final budget."
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of GRAND PRAIRIE, Texas that:
Section 1. This resolution shall be in force immediately upon its passage in accordance with the Charter of the City of Grand Prairie and it is accordingly so resolved.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, March, 5, 2019.