Title
Consider a resolution approving and adopting Financial Policies related to the Budget for FY 2022-23.
Body
The Chief Financial Officer proposes some updates to the City’s financial policies. The substantive updates were reviewed with Council at the July 28, 2022 work session. These policies provide a strong framework to guide fiscal and budgetary decision making. Per the policy, these are reviewed and adopted annually in conjunction with the adoption of the City of Round Rock annual budget.
Substantive recommended changes include:
1. In the Budget section under Personnel, allow the Fire Department to have 4.0 FTEs in excess of budget to accommodate planned departures and retirements in the same manner as the Police department, see Page 6.
2. In the Funds, Reserves and Designations section under Self Finance Construction Fund, clarifying language on the source of General Self Finance Construction, and a reference to the limits set under the Revenues section, see Pages 8-9.
3. Under the Revenues section under Sales Tax, updating and clarifying language regarding the limit on any single large taxpayer (Dell) and establishing a 45% cap on sales tax as a percentage of General Fund expenses, see Page 11
The policy also includes two minor updates that explicitly require the City to comply with state calculation requirements for property tax, see Page 11, and to comply with reporting requirements for economic development agreements, see Page 17.
The red-lined Financial Policy is attached as Exhibit A.
Recommended Action
Staff recommends approval.