Operating and CIP Budget Fiscal Year 2015-16

Fiscal Policies (continued)

3. CASH MANAGEMENT

developed on an annual basis. Appropriations for each year will be approved by the City Council.

 CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16 OPERATING AND CIP CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY15-16  OPERATING AND CIP BUDGET  CITY A. City investments and cash management will be the responsibility of the City Treasurer. B. In accordance with Section 53646 of the Govern- ment Code, the City Council will review and update annually, a specific investment policy. The primary purpose of this policy is to set forth the City’s in- vestment philosophy and objectives. The City’s investment objectives are, in order of priority: 1) safety, 2) liquidity, and 3) yield. The policy also spe- cifically outlines authorized investments, the ac- ceptable percentages and maximum maturities allowed for each investment instrument and the criteria used to determine qualified depositories/ dealers. C. The City invests all idle cash as determined by analysis of anticipated cash flow needs. Specific emphasis will be placed on future cash require- ments when selecting maturity dates to avoid forced liquidations and the potential corresponding loss of investment earnings. D. In order to maximize yields from the overall portfo- lio, the City will consolidate cash balances from all funds for investment purposes, and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. E. The City Treasurer will generate a monthly report to the City Council in conformance with all State laws and City investment policy requirements. F. The City’s independent auditors, in conjunction with their annual audit, will audit the cash and in- vestment balances in conformance with generally accepted accounting principles. 4. OPERATING BUDGET A. The City of Morgan Hill’s Operating Budget will be B. The City’s Budget Document will include selected performance measures to better describe the workload of the different City programs, to gauge our effectiveness in providing services, and to ulti- mately be able to compare the City’s overall per- formance with other like agencies. C. The City will avoid budgetary and accounting proce- dures that balance the current budget at the ex- pense of future budgets. D. The City shall define a “balanced budget” as a budget where ongoing funding sources are suffi- cient to support ongoing funding uses. A budget may temporarily use fund balance to offset a tem- porary reduction in funding sources, however, fund balance shall not be used to fund ongoing ex- penses without a sustainble budget adjustment. E. The legal level of control is established as follows: a. The Department Director has the authority to transfer between line items within an activity to facilitate the functions of the activity in accordance with the directions, goals and policies of the City Council. b. The City Manager is authorized to transfer appropriations within an activity budget to facilitate the functions of that activity in accordance with the directions, goals and policies of the City Council. c. A transfer of appropriations between ac- tivities, additional appropriations, new programs or new appropriations requires the authorization of the City Council. F. Mid-year budget adjustment reports will be pre- sented to Council in February of each fiscal year, if

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