Laserfiche WebLink
FINANCIAL INFORMATION <br />City Budget & Budgetary Controls <br />The City Council is required to adopt a final budget by passing a budget resolution no later than June <br />30, following a public hearing process. This annual budget serves as the foundation for the City's <br />financial planning and control. The budget is prepared by fund, function (Public Safety) and <br />department (Police). The legal level of budgetary control is at the fund level. The City Manager is <br />authorized to transfer budgeted amounts between departments and line items within any fund. Any <br />revisions that alter the total expenditures of any fund must be approved by the City Council. <br />Transfers between funds must be approved by the City Council. At the end of the fiscal year, <br />encumbered appropriations are carried forward and become part of the following year's budget while <br />appropriations that have not been encumbered lapse, unless otherwise authorized by the City Council <br />and the City Manager. <br />Accounting System <br />The City's accounting records for general government operations are maintained on a modified <br />accrual basis, with revenues recorded when measurable and available. Expenditures are recorded <br />when the services or goods are received and the liabilities incurred. Accounting records for the <br />City's proprietary activities are maintained on the full accrual basis, with revenues recorded <br />when earned and expenses when incurred. <br />In maintaining the City's accounting system, consideration is given to the adequacy of internal <br />controls. Internal controls are designed to provide reasonable assurance regarding the <br />safeguarding of assets and to ensure the reliability of financial records and maintaining <br />accountability for assets. The concept of reasonable assurance recognizes that the cost of control <br />should not exceed the benefits likely to be derived. The evaluation of costs and benefits requires <br />continuing estimates and judgments by City management. We believe that the City's system of <br />internal accounting controls continues to adequately safeguard assets and provide reasonable <br />assurance that financial transactions are properly recorded. <br />Risk Management <br />The City maintains commercial insurance combined with self-insurance for all of its governmental <br />operations. The City is a member of the Local Agency Workers' Compensation Excess Joint Powers <br />Authority (LAWCX). The City is also a member of California Joint Powers Risk Management <br />Authority (CJPRMA), providing general liability coverage in an aggregate up to $40 million. <br />Additional information on the City's risk management activity can be found in Note 11 to the basic <br />financial statements. <br />