HomeMy WebLinkAboutItem #4 ReservesCity of Chubbuck
Operational Reserves
10 General
11 HSR
31 Water
32 Wastewater
33 Sanitation
Reserve
3,453,406
(2,310,284)
5,927,134
5,555,415
2,782,464
FY2024
Budget
9,973,573
2,395,000
4,938,400
6,364,000
2,952,800
Operational Reserve Range
low High
2,493,393 4,986,787
598,750 1,197,500
1,234,600 2,469,200
1,591,000 3,182,000
738,200 1,476,400
Capital Avaliable
960,013 (1,533,381)
(2,909,034) (3,507,784)
4,692,534 3,457,934
3,964,415 2,373,415
2,044,264 1,306,064
Accounting Department Policies
Purpose
The City of Chubbuck has an important responsibility to its citizens to carefully account for
public funds, to manage City finances wisely, and to plan for the adequate funding of services
desired by the public. The City's accounting policies establish the framework for overall fiscal
planning and management. These accounting policies set forth guidelines for both current
activities and long range planning.
Obiectives
A. To promote sound financial management by providing accurate and timely information
on the City's financial condition.
B. To help design and manage an effective and efficient revenue system that assures
adequate funding for services and service levels.
C. To help establish and define appropriate service levels and administer the expenditure of
available resources to assure fiscal stability.
D. To maintain sufficient reserves so as to maintain service levels during periods of
economic downturn.
E. To help review and monitor the condition of the City's capital equipment and
infrastructure, setting priorities for its replacement and renovation based on needs,
funding alternatives and availability of resources
F. To protect the City's credit rating and provide for adequate resources to meet the
provisions of the City's debt obligations on all municipal debt.
G. Establish guidelines to invest the City's operating cash to ensure its safety, provide
necessary liquidity and maximize yield.
H. To help investigate, pursue and effectively administer federal, state and other grants,
which address the City's current priorities and policy objectives.
I.
Accounting, Auditing and Financial Reporting
A. Accounting Practices and Principles
The City's accounting practices and financial reporting shall conform to Generally Accepted
Accounting Principles (GAAP) as set forth by the Governmental Accounting Standards
Board (GASB), the authoritative standard setting body for units of local government.
B. Financial and Management Reporting
Reports will be available at any time to Department Heads, Fund Managers and City Council
that compare expenditures and revenues to original or amended budgets for the fiscal year-to-
date. Any explanations needed will be provided upon request.
C. Annual Audit
The City shall have its records and accounts audited annually. The audit shall be performed
by a certified public accounting (CPA) firm, licensed to practice in the State of Idaho.
D. Compliance and Review
The accounting policies can be reviewed and changed at any time. At a minimum the entire
policy will be reviewed annually and updated, revised or refined as deemed necessary.
Policy statements adopted by City Council are guidelines, and occasionally exceptions may
be appropriate and required. Exceptions will be identified, documented, and explained to
City Council.
II.
Budget and Long -Range Financial Planning
A. Balanced Budget
The budget shall be balanced for each and every budgeted fund. Total anticipated revenues
plus that portion of the fund balance in excess of authorized reserve, which is designated as a
budgeted funding source, shall equal total estimated expenditures for each fund.
B. Level of Budget Adoption
All budgets shall be adopted at the legal level of budgetary control, which is the fund level.
All budgets shall be adopted on a basis consistent with Generally Accepted Accounting
Principles (GAAP).
C. Current Funding Basis (Recurring Revenues)
The City shall budget and operate on a current funding basis. Recurring expenditures shall
be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be
funded exclusively with recurring revenue sources to facilitate operations on a current
funding basis.
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D. Use of Non -Recurring Revenues
Non-recurring revenue sources, such as one-time revenue remittance of fund balance in
excess of policy can only be budgeted/used to fund non-recurring expenditures, such as
capital purchases or capital improvement projects. This will ensure that recurring
expenditures are not funded by non-recurring sources.
E. Revenue Estimates for Budgeting
1. In order to maintain a stable level of services, the City shall use fiscally responsible
objectives and an analytical approach when preparing revenue estimates. This process
shall include analysis of probable economic changes and their impacts on revenues,
historical collection rates, and trends in revenues. This approach is intended to reduce the
likelihood of actual revenues falling short of budget estimates and should avoid mid -year
service reductions.
2. The City whenever possible, will seek outside sources of revenue, such as federal, state,
and local grants, in order to leverage local dollars.
3. Estimates from grant sources will be projected only in the amount that has been awarded
to the City.
4. For services that benefit specific users, the City shall establish and collect fees to recover
the costs of those services. User fees shall be reviewed every year and compared to the
current fee structure and adjustments should be recommended where necessary.
5. Utility rates and enterprise fund user fees shall be set at levels sufficient to cover
operating expenditures (both direct and indirect costs), meet debt obligations, and provide
adequate levels of working capital. The rates and user fees will be determined by the
department head using responsible objectives and analysis. These amounts can be
amended when necessary.
F. Budget Preparation
1. The Mayor, Accounting Department and Department Heads have primary responsibility
for formulating budget proposals. New or expanded services should support City
Council goals and should be discussed with City Council as appropriate.
2. Any competing requests for City resources will be weighted within the formal annual
budget process.
G. Budget Management
The City Council shall delegate authority to the Mayor, Accounting Department and
Department Heads in managing the budget after it is formally adopted by the City Council,
including the transfer of funds within departments. Expenditures are legally adopted by the
fund level. Department Heads are responsible for the management of expenditures within
departments and line items. Expenditures should not exceed the adopted budget, plus
subsequent changes approved by the City Council.
H. Amended Budget
A. A Department Head should request approval from the Mayor for inter department or line
item budget adjustments.
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B. A Department Head should work with the Council, Mayor, City Clerk and the
Accounting Department when an increase in budget authority is needed. The Council
may amend the budget and grant additional authority when the following occur:
a. Revenues are received or are to be received from sources not anticipated in
the budget for that year
b. Revenues are received or are to be received from anticipated sources but in
excess of the budget estimates; or
c. Fund balances on hand are available to be used, in accordance with the
Reserve Policy.
Performance Management
The departments will utilize performance measures, trends and comparisons to budgets and
previous year's actuals as a management tool to monitor and improve service and
accountability.
J. Long -Range Financial Plans
1. The Department Heads with the help of the accounting department should work to
develop and maintain a five-year financial forecast for each department.
2. The forecast should enable current services and current service levels provided to be
sustained over the forecast period. Operating impacts from completed capital
improvement projects within the departments should be considered in the forecast.
Commitments/obligations already made that require future financial resources shall also
be included.
3. The forecasts should seek to identify impact to property taxes, fees and rates.
4. Major financial decisions should be made in the context of the Long -Range Plan.
The forecast seeks to assess long-term financial implications of current and proposed
policies, programs, and assumptions that develop appropriate strategies to achieve the
department's goals. The forecast will provide an understanding of available funding;
evaluate financial risk; assess the likelihood that services can be sustained; assess the level at
which capital investment can be made; identify future commitments and resource demands;
and identify the key variables that may cause change in the level of revenue.
III.
Revenues
Design, maintain and administer a revenue system that will assure reliable, equitable, diversified
and sufficient revenue stream to support desired City services.
A. Balance and Diversification in Revenue Sources
The City shall strive to maintain a balanced and diversified revenue system to protect the
City from fluctuations in any one source due to changes in local economic conditions, which
may adversely impact that source.
B. User Fees — Tax Funds
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1. For services that benefit specific users, the City shall establish and collect fees to recover
the costs of those services. Where services provide a general public benefit, the City
shall recover the costs of those services through property tax and shared revenues.
2. At a minimum, the City will strive to cover direct costs.
3. User fees should be reviewed every year and adjusted to avoid sharp changes.
4. Factors in setting fees shall include, but are not limited to: market and competitive
pricing, effect of demand for services, and impact on users, which may result in
recovering something less than direct, indirect and overhead costs.
5. The City may set a different fee for residents versus non-residents.
6. User fees should be adopted by the Annual Fee Resolution.
C. User Fees — Enterprise Funds
1. Utility rates and other Enterprise Fund user fees shall be set at levels sufficient to cover
operating expenses (direct and indirect), meet debt obligation and debt service coverage,
provide pay-as-you-go funding for capital improvements, and provide adequate levels of
working capital.
2. The City may set a different fee for residents versus non-residents.
3. Responsible objectives and analysis shall serve as the basis for rate change
considerations.
4. User fees should be adopted by the Annual Fee Resolution.
D. One-Time/Unpredictable Revenue Sources
1. One-time, unpredictable revenue sources should not be used for ongoing
expenses/expenditures.
2. One-time, unpredictable revenue sources may be used for one-time purchases such as
increase in fund balance requirements, capital equipment purchases, or capital
improvements.
E. Revenue Collection
The City shall maintain high collection rates for all revenues by monitoring monthly
receivables. The City shall follow an aggressive, consistent, yet reasonable approach to
collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and
others overdue in payments to the City.
Revenues actually received will be compared to budgeted revenues by the accounting
department and any variances considered to be material will be investigated.
F. Write -Off of Uncollectible Receivables
(Excludes property taxes, court fines and warrants)
1. Past due accounts will be sent a past due bill, a delinquent notice, and receive a phone
call before they are sent to a collection agency.
a. After all collection attempts have been exhausted, uncollectible amounts remaining
can be written -off.
b. The write-off of uncollected accounts is a bookkeeping entry only and does not
release the debtor from any debt owed to the City.
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2. Accounts Receivable past due accounts will be a sent a past due bill, a delinquent notice,
and received a phone call before they are sent to a collection agency.
a. After all collection attempts have been exhausted, uncollectible amounts remaining
can be written -off.
b. The write-off of uncollected accounts is a bookkeeping entry only and does not
release the debtor from any debt owed to the City.
IV.
Expenditures
Identify services, establish appropriate service levels and administer the expenditure of
available resources to assure fiscal stability and the effective and efficient delivery of those
services.
A. Maintenance of Capital Assets
Within the resources available each fiscal year, the City shall maintain capital assets and
infrastructure at sufficient levels to protect the City's investment, to minimize future
replacement and maintenance costs, and to maintain service levels.
B. Periodic Program/Services Reviews
Department Heads with the help of the accounting department shall undertake periodic
reviews of City programs and services for both efficiency and effectiveness. Programs or
services determined to be inefficient and/or ineffective shall be recommended through the
annual budget process to be reduced in scope or eliminated.
C. Purchasing
All City purchases of goods and services shall be made in accordance with the City's current
Purchasing Policy's.
V.
Fund Balance and Reserves
Maintain the fund balance and working capital of the various operating funds at levels
sufficient to protect the City's credit worthiness as well as its financial position during
emergencies or economic fluctuations.
A. Fund Balance/Working Capital
The City shall maintain fund balance and working capital amounts that preserve the
operational stability of the city. This is usually defined as 3 to 6 months of operations.
B. Use of Fund Balance/Working Capital
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Fund balance/working capital shall only be used for emergencies, non-recurring
expenditures/expenses or major capital purchases that cannot be accommodated through
current year savings. Should such use reduce balances below the level established as the
objective for that fund, restoration recommendations will accompany the request/decision to
utilize said balances.
C. Fund Balance Classification
The governmental fund financial statements will present fund balances based on
classifications that comprise a hierarchy that is based primarily on the extent to which the
City is bound to honor certain constraints on the use of the financial resources within the
governmental funds. The classifications used will be as follows:
• Nonspendable: Amounts that cannot be spent because they are either (a) not in spendable
form or (b) legally or contractually required to be maintained intact. Examples include
inventories, prepaid items, and long-term receivables.
• Restricted: Amounts for which constraints have been placed on the use of resources
either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of
other governments, or (b) imposed by law through constitutional provisions or enabling
legislation. Restricted fund balances include but may not be limited to: Debt Service
Reserves, Special Court Funds created by State Statute, Debt Service Funds, State and
Federal Forfeitures/Seizures, and City -Wide Donation revenues.
• Committed: Amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the City Council. These amounts cannot be used for any
other purpose unless the City Council removes or changes the specified use by taking
some type of action that was employed when the funds were initially committed.
• Assigned: Amounts that are constrained by the City's intent to be used for specific
purposes but are neither restricted nor committed. In governmental funds other than the
general fund, assigned fund balances represent the amount that is not restricted or
committed. This indicates that those resources are, at a minimum, intended to be used for
the purpose of that fund.
• Unassigned: Is the residual classification of the general fund and includes all amounts not
contained in other classifications. Unassigned amounts are technically available for any
purpose.
Commitment of Fund Balance:
• The City Council is the City's highest level of decision-making authority and the formal
action that is required to be taken to establish, modify, or rescind a fund balance
commitment is a council action. The action must either be approved or rescinded, as
applicable, prior to the last day of the fiscal year for which the commitment is made.
Order of Expenditure of Funds:
• When multiple categories of fund balance are available for expenditure, the City will
typically use Restricted fund balances first, followed by Committed, and the Assigned,
but reserves the right to selectively spend from any of the categories, including
Unassigned based upon the individual circumstances.
VI.
Capital Expenditures and Improvements
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Annually review and monitor the state of the City's capital equipment and infrastructure, setting
priorities for its replacement and renovation based on needs, funding alternatives, and
availability of resources.
A. Capitalization Threshold for Tangible Capital Assets
1. Tangible capital items should be capitalized only if the asset's initial, individual cost is
more than $25,000 and has an estimated useful life in excess of one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed.
2. Donated capital assets are recorded at estimated fair market value at the date of donation.
3. The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend an asset's life are not capitalized.
4. Accurate inventories of all tangible items will be maintained to ensure proper stewardship
of public property.
B. Five -Year Capital Improvement Plan (CIP)
1. Department Heads with the help of the Accounting Department shall annually prepare a
five-year capital improvement plan based on the needs for capital improvements and
equipment, the status of the City infrastructure, replacement and renovation needs, and
potential new projects. Capital projects are improvements or additions to the City's
physical plant/facilities/infrastructure and become a part of the City's asset inventory.
Capital projects can be further categorized into land, buildings, improvements other than
buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines,
physical plants, etc. Capital costs typically consist of preliminary design, final design,
and construction, and may involve the acquisition of land or easements. For purposes of
the CIP Plan, a Capital Improvement Project should generally exceed a cost of $100,000.
2. For every project identified in the CIP, a project scope and project justification should be
explained. Also, project costs shall be estimated, funding sources identified and annual
operation and maintenance costs computed.
3. Annually, through the budget process and at year-end, projects are to be reviewed. For
those identified as complete, any remaining funds will close to fund balance. These
funds can then be re -appropriated during the next fiscal year capital budget. Funds
remaining from bond proceeds will only be used in accordance with the legal use of those
funds.
4. Appropriations for capital projects are for the fiscal year only, therefore re -appropriation
of capital funding is needed annually.
5. Infrastructure Evaluation and Replacement/Rehabilitation
Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities and
other infrastructure are fundamental and essential functions for public health and safety,
environmental protections and the economic well-being of the City. As a result, the City's
CIP should be focused on ensuring that infrastructure is replaced as necessary to protect the
City's investment, to minimized future replacement and maintenance costs, and to maintain
existing levels of service.
a. High priority should be given to replacing/rehabilitating capital improvements prior
to the time that they have deteriorated to the point where they are hazardous, incur
high maintenance costs, negatively affect property values, or no longer serve their
intended purpose.
b. The decision on whether to repair, replace or to rehabilitate an existing capital asset
will be based on which alternative method is most cost-effective, which would
include life -cycle costing, and provides the best value to the City.
6. Replacement of Capital Assets on a Regular Schedule (Fleet, Fire Trucks, and High -
Tech)
The City should strive for the appropriate replacement of its fleet, fire trucks, and high
technology capital assets. Funding for the replacement of these assets will be accomplished
through the annual budget process, within the resources available each fiscal year. A variety
of funding options will be explored, including but not limited to cash on hand and
lease/purchase, based upon a determination of what would be in the best interest of the City.
7. Capital Expenditure Financing
The City recognizes that there are three basic methods of financing its capital requirements:
Funding from current revenues; funding from fund balance; or funding through the issuance
of debt.
8. Pay -As -You -Go Capital Improvements
a. The City will pay cash for capital improvements within the financial affordability of
each fund versus issuing debt when funding capital improvements and capital
purchases. This will reduce/minimize the property tax and utility rate impacts on
citizens.
b. The City will seek out and use intergovernmental funding sources for capital
improvements in order to leverage City funding and to minimize property and utility
rate impacts.
9. Capital Improvements/Project Reporting
A summary/status report on the City's various capital projects will be given to the Mayor and
Council as requested.
VII.
Debt
Establish guidelines for debt financing that will provide needed facilities, land, capital
equipment and infrastructure improvements while minimizing the impact of debt payments
on current and future revenues.
A. Use of Debt Financing
Debt financing, to include general obligation bonds, revenue bonds, lease/purchase
agreements, and other obligations permitted to be issued or incurred under Idaho law, shall
only be used to purchase capital assets that cannot be prudently acquired from either current
revenues or fund balances and to fund infrastructure improvements and additions. Debt will
not be used to fund current operating expenditures.
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The City will pay cash for capital improvements within the financial affordability of each
fund versus issuing debt when funding capital expenditures and capital improvements, which
shall include, but not be limited to, shared revenues, utility system revenues, developer fees,
and state and federal grants.
B. Affordability
The City shall use an objective analytical approach to determine whether it can afford to
issue general-purpose debt, General Obligation, water/sewer debt, and any other financing
permitted by State law. The process shall include an internal feasibility analysis for each
long-term financing which analyzes the impact on current and future budgets, which would
include the tax and utility rates. The process shall also include the benefits of the proposed
projects. The decision on whether or not to issue new debt shall be based on the benefits of
the project, current conditions of the municipal bond market, and the City's ability to service
new debt.
In no case will the City issue general obligation debt that will exceed the maximum amount
allowed per State law.
C. Types of Long -Term Debt
1. General Obligation Bonds (GO)
General Obligation bonds require voter approval and are secured by a promise to levy
taxes in an amount necessary to pay annual debt service.
a. General Obligation bonds must be issued for projects that are in accordance with the
wording in the bond proposition.
2. Revenue Bonds
Revenue bonds are generally payable from a designated source of revenue.
For the City to issue new revenue bonds, revenues, as defined in the ordinance
authorizing the revenue bonds in question, shall meet the bond coverage as defined in the
ordinance. Annual adjustments to the City's rate structures for Enterprise Funds will be
made as necessary to maintain coverage of the bond requirements.
D. Debt Structures
The City shall normally issue bonds with a life not to exceed 30 years for both general
obligation and revenue bonds, but in no case longer than the useful life of the asset. The City
shall seek level or declining debt repayment schedules. There shall be no balloon bond
repayment schedules, which consists of low annual payments and one large payment of the
balance due at the end of the term. There shall always be at least interest paid in the first
fiscal year after the bond sale and principal payments starting generally no later than the
second fiscal year after the bond issue.
The City will follow the State code concerning legal debt margins. The City shall seek to
begin making attempts to structure future debt issuances, where affordable, to a declining
structure.
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E. Debt Refinancing
The City's accounting department shall monitor the municipal bond market for opportunities
to obtain interest savings by refinancing outstanding debt. As a general rule, the net present
value savings of a particular refunding should exceed 3.0% of the refinanced maturities
unless: (1) a debt restructuring is necessary; or (2) bond covenant revisions are necessary to
facilitate the ability to provide services or to issue additional debt or; (3) the refunding is
combined with a new debt issuance.
F. Sale Process
The City shall use a competitive bidding process in the sale of debt unless the nature of the
issue warrants a negotiated sale.
G. Bond Ratings
Full disclosure of operations and open lines of communications shall be maintained with the
rating agencies. Credit ratings will be sought from one or more of the nationally recognized
municipal bond rating agencies.
The City will continually strive to maintain or increase the City's current bond ratings by
prudently managing its funds and by reviewing and monitoring financial policies, budgets,
forecasts and the financial health of the City.
H. Covenant Compliance
The City will comply with all covenants stated in the bond ordinance, including providing for
annual disclosure information and providing for material event notices.
I. Arbitrage Rebate Monitoring and Reporting
Arbitrage is the interest earned on the investment of bond proceeds above the interest paid on
the debt. The City will maintain a system of recordkeeping and reporting to meet the
arbitrage rebate compliance requirement of the IRS regulation. The recordkeeping shall
include tracking project expenditures, interest earned on the bonds, calculating rebate
payments, and remitting any rebatable earnings to the federal government in a timely manner
in order to preserve the tax-exempt status of the outstanding debt. Arbitrage rebate
calculations will be performed as required by state law on all debt issues and the liability
recorded for any positive arbitrage. Due to the specialized nature of the calculations, this
function will typically be outsourced.
J. Lease/Purchase Agreements
The City will use lease/purchase agreements for the acquisition of equipment when it is cost-
effective and provides for attractive terms. All lease purchase agreements will be approved
by the City Council no matter the dollar amount.
VIII.
Cash Management and Investments
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To maintain the City's cash in such a manner so as to ensure the absolute safety of principal,
to meet the liquidity needs of the City, and to achieve the highest possible yield.
A. Investment Management
1. All aspects of cash/investment management shall be designed to ensure safety and
integrity of the City's financial assets.
2. Cash/Investment management activities shall be conducted in full compliance with
prevailing local, state, and federal regulations.
3. The City will utilize competitive quotes from approved broker/dealers, affording no
special advantage to any individual or corporate member of the financial or investment
community.
4. The City will only do business with City authorized broker/dealers and/or financial
institutions as approved by Council and who have executed a written certification of their
review of the City's Investment Policy.
5. The City shall design and establish policies relating to a variety of cash/investment
management issues, such as eligibility and selection of various broker/dealers,
safekeeping requirements, collateral requirements, delivery versus payment requirements,
weighted average maturity requirements, and other such aspects of the program, which
necessitate standard setting in pursuit of appropriate prudence and enhanced protection of
assets.
6. Investments of the City shall be made with the exercise of judgement and care which
persons of prudence, discretion, and intelligence exercise in the management of their own
affairs, not for speculation, but for investment.
B. Investment Strategy
The City maintains a consolidated portfolio in which it pools its funds for investment
purposes. The City's investment program seeks to achieve safety of principal, adequate
liquidity to meet cash needs, and reasonable yields commensurate with the preservation of
principal and liquidity.
C. Arbitrage Investments
Investment on bond proceeds will be made with safety of principal and liquidity in mind, but
with a competitive rate of return. If there is positive arbitrage, the rebatable earnings will be
sent to the IRS, as necessary.
D. Depository
The City will select its official bank through a formal bidding process, as per Idaho State
code, in order to provide the City with the most comprehensive, flexible, and cost-effective
banking services available. The City's review the financial health of its depository will
include but not be limited to earnings, assets, capital, and liquidity.
IX.
Grants and Intergovernmental Revenues
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The City will seek, apply for, and effectively administer federal, state and local grants, which
support the City's current priorities and policy objectives. The City should take advantage of
opportunities to enhance service delivery through intergovernmental cooperation, shared
revenues, and grants.
A. Grant Guidelines
1. The City shall apply and facilitate the application for only those grants that are consistent
with the objectives and high priorities identified by the Council and management.
2. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating
grants should not be used to fund ongoing programs and services.
3. The potential for incurring ongoing costs, to include assumptions of support for grant -
funded positions from local revenues, will be considered prior to applying for a grant.
B. Grant Review Process
A uniform grants pre -application process will be utilized to assure the City has all the
information necessary to make a decision regarding a potential grant. Information to be
provided should include, but not be limited to:
b. The grant being pursued and the use to which it would be placed
c. The objectives or goals of the City which will be achieved through the use of the
grant
d. The local match required, if any, plus the source of the local match
e. The increased cost to be locally funded upon termination of the grant
2. All grant agreements will be reviewed by the appropriate City staff, including accounting
and the sponsoring department, to ensure compliance with State, Federal, and City
regulations.
C. Budgeting for Grant Expenditures
Annually, via the budget process, departments will submit for possible funding, known grant
opportunities. These grant opportunities will be prioritized and ranked along with all other
supplemental requests. If approved, the expenditure and associated revenue will be
appropriated in the requesting fund. If there are grant opportunities that arise during the year
and are received by the City, the budget can be amended via the projections, if the City can
fund the local match required.
D. Grant Termination and/or Reduced Grant Funding
1. In the event of reduced grant funding, City resources will be substituted only after all
program priorities and alternatives are considered during the budget process, unless the
City is obligated through the terms of the grant to maintain the positions, services, or
equipment.
2. The City shall terminate grant -funded programs and associated positions when grant
funds are no longer available, and it is determined that the program no longer supports
City goals and/or is no longer in the best interest of the City, unless the City has obligated
itself through the terms of the grant to maintain the positions, services, or equipment.
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