PROPOSAL TO IMPROVE THE FINANCIAL AND BUDGETING MANAGEMENT OF MUNICIPAL JURISDICTIONS

Presented to the Committee on Canadian Issues Denver, June 15, 2002

Roger Galipeau, FCA

CONTENTS

1. 2. 3. 4. 5. 6. 7. 8.

OBJECTIVES WHAT IS THE GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)? ORIGIN OF THE PROJECT GFOA RECOMMENDED PRACTICE, ADOPTION OF FINANCIAL POLICIES ADVANTAGES OF ADOPTING FINANCIAL POLICIES REASONS TO ADOPT FINANCIAL POLICIES SUMMARY RECOMMENDATIONS

APPENDIX 1: APPENDIX 2: APPENDIX 3:

GFOA - AWARDS CRITERIA QUBEC MUNICIPAL FINANCIAL INFORMATION MANUAL AN ACT (APPROVED BILL 82) RESPECTING PUBLIC ADMINISTRATION IN QUEBEC AN ACT (PROPOSED BILL 46) RESPECTING THE ACCOUNTABILITY OF PUBLIC SECTOR ORGANIZATIONS (PROVINCE OF ONTATIO) AN ACT (PROPOSED BILL 106) TO AMEND VARIOUS LEGISLATIVE PROVISIONS CONCERNING MUNICIPAL AFFAIRS (MAY 2002) BUDGET PRINCIPLES OF THE CITY OF REGINA

APPENDIX 4:

APPENDIX 5:

APPENDIX 6:

1. OBJECTIVES

To improve the management of local governments by adopting the Recommended Policies of the Government Finance Officers Association (GFOA) for the United States and Canada. To include within the budget document a comprehensive summary of all of a governments critical budget policies.

2. WHAT IS THE GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)?

GFOA is the professional association of state/provincial and local finance officers in the United States and Canada, and has served the public finance profession since 1906. The association's 15 000 members (more than 200 from Canada) are dedicated to the sound management of government financial resources. Membership Membership in GFOA is open to government employees at the local, state, provincial, or federal level. GFOA members form a diverse group of individuals--from entry-level employees to senior managers--who work for a broad range of governments, including cities, towns, and other municipalities of all sizes; county governments; school districts and special districts; public employee retirement systems; states and provinces; and the federal government. Associate members come from schools of administration and public affairs; accounting firms, law firms, investment banks, and consulting firms.

Professional Services The association's full-time staff administer a broad range of services and programs in the major functional areas of government financial management, including:

Accounting, auditing, and financial reporting; Budgeting and financial planning; Capital finance and debt administration; Cash management and investments; Financial management; Retirement administration and finance; and, Health care and other employee benefits.

Improving government budgeting is one of the biggest challenges facing state, provincial, and local governments today. Recognizing the critical need for guidance in this area, the GFOA worked with other government associations, academe, labour, and industry to form the NACSLB in 1995. The NACSLB was charged with establishing guidelines for budgeting that could be readily adapted to any type or size of government. In 1998, the NACSLB released Recommended Budget Practices: A Framework for Improved State and Local Government Budgeting.
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GFOA - BEST PRACTICES IN PUBLIC BUDGETING

Elements Each of the principles of the budget process incorporates components or elements that represent achievable results. These 12 elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements and are a way to accomplish the elements. The elements of each guiding principle are identified on the right. The principles and elements provide a structure to categorize budgetary practices. Click on an element to see a more detailed explanation.
Overview of Principles, Elements, and Practices http://www.gfoa.org/services/nacslb/ Principle I Establish Broad Goals Element 1- Assess Community Needs, Priorities, Challenges and Opportunities Element 2- Identify Opportunities and Challenges for Government Services, Capital Assets, and Management Element 3- Develop and Disseminate Broad Goals

Principle II Develop Approaches Element 4- Adopt Financial Policies Element 5- Develop Programmatic, Operating, and Capital Policies and Plans Element 6- Develop Programs and Services that are Consistent with Policies and Plans Element 7- Develop Management Strategies

GFOA - BEST PRACTICES IN PUBLIC BUDGETING

Elements Each of the principles of the budget process incorporates components or elements that represent achievable results. These 12 elements help translate the guiding principles into action components. Individual budgetary practices are derived from these elements and are a way to accomplish the elements. The elements of each guiding principle are identified on the right. The principles and elements provide a structure to categorize budgetary practices. Click on an element to see a more detailed explanation.
Overview of Principles, Elements, and Practices http://www.gfoa.org/services/nacslb/

Principle III Element 8-

Develop Budget Develop a Process for Preparing and Adopting a Budget Develop and Evaluate Financial Options Make Choices Necessary to Adopt a Budget

Element 9-

Element 10-

Principle IV Element 11-

Evaluate Performance Monitor, Measure, and Evaluate Performance Make Adjustments as Needed

Element 12-

3. ORIGIN OF THE PROJECT

The GFOA recommends that all states and local governments develop a comprehensive set of financial policies to help define how they intend to achieve their long-term goals (Recommended Practices 4.1-4.7). The recommendations specifically address the need to adopt policies regarding:

Practice 4.1 Practice 4.2 Practice 4.3

Stabilization Funds Fees and Charges Debt Issuance and Management Debt Level and Capacity Use of One Time Revenues Use of Unpredictable Revenues Balancing the Operating Budget Revenue Diversification Contingency Planning

Practice 4.3a Practice 4.4 -

Practice 4.4a Practice 4.5 Practice 4.6 Practice 4.7 -

An increasing number of U.S. and Canadian governments have formally adopted financial policies and regularly publish these policies in their budgets. However, even among these governments there is considerable variety regarding: The types of financial policies adopted; The scope of the financial policies adopted; The role of elected officials in establishing and periodically reviewing these policies and, The method of presenting financial policies in the budget document. While we believe that a degree of diversity is desirable, consistent with the diverse circumstances of different governments, we also believe that a minimal degree of consistency is needed as well if financial policies are to be truly effective.

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4. 4. GFOA RECOMMENDED PRACTICE

http://www.gfoa.org/services/rp/budget.shtml#9

Adoption of Financial Policies

GFOA Recommended Practice, Adoption of Financial Policies

Background The National Advisory Council on State and Local Budgeting (NACSLB) has developed a comprehensive set of recommended budget practices. The recommendations have been endorsed by a number of key governmental associations, by academia and by labor groups associated with state and local governments. These practices and the associated framework outline a budget process that encompasses the broad scope of governmental planning and decision-making with regard to the use of resources. This work is recognized as one of the most important advances in governmental finance in decades. The Government Finance Officers Association (GFOA) has adopted a recommended practice endorsing the NACSLB practices and the associated framework. However, the policies included in this Recommended Practice are those considered fundamental to the budget process and relevant to the broadest number of jurisdictions.

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GFOA Recommended Practice, Adoption of Financial Policies

The work of the NACSLB provides a framework for describing the overall budget process. The framework is organized around the four principles of the budget process: Establish Broad Goals to Guide Government Decision Making Develop Approaches to Achieve Goals Develop a Budget Consistent with Approaches to Achieve Goals Evaluate Performance and Make Adjustments

Each of these principles has additional elements that provide guidance for an effective budget process. Element #4, of Principle 2, Adopt Financial Policies, addresses the need for jurisdictions to establish policies to help frame resource allocation decisions. (Appendix 1)

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GFOA Recommended Practice, Adoption of Financial Policies

Recommendation The Government Finance Officers Association (GFOA) recommends that, at a minimum, financial policies in the following areas be developed by professional staff and formally adopted by the jurisdiction's governing board as well as the governing boards of those component units; state, provincial and municipal corporations and organizations; and other bodies under their jurisdiction: Financial Planning Policies Revenue Policies Expenditure Policies The jurisdiction's adopted financial policies should be used to frame major policy initiatives and be summarized in the budget document. It is further recommended that these policies, along with any others that may be adopted, be reviewed during the budget process. Professional staff should review the policies to ensure continued relevance and to identify any gaps that should be addressed with new policies. The results of the review should be shared with the governing board during the review of the proposed budget.

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GFOA Recommended Practice, Adoption of Financial Policies

Policy categories that should be considered for development, adoption and regular review are as follows: Financial Planning Policies These policies address both the need for a long-term view and the fundamental principle of a balanced budget. At a minimum, jurisdictions should have policies that support: 1. Balanced Budget - A jurisdiction should adopt a policy(s) that defines a balanced operating budget, encourages commitment to a balanced budget under normal circumstances, and provides for disclosure when a deviation from a balanced operating budget is planned or when it occurs. (NACSLB Practice 4.5) 2. Long-Range Planning - A jurisdiction should adopt a policy(s) that supports a financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets, budget policies, cash management and investment policies, programs and assumptions. (NACSLB Element 9, GFOA Recommended Practice) 3. Asset Inventory - A jurisdiction should adopt a policy(s) to inventory and assess the condition of all major capital assets. This information should be used to plan for the ongoing financial commitments required to maximize the public's benefit. (NACSLB Practice 2.2)
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GFOA Recommended Practice, Adoption of Financial Policies

Revenue Policies Understanding the revenue stream is essential to prudent planning. Most of these policies seek stability to avoid potential service disruptions caused by revenue shortfalls. At minimum jurisdictions should have policies that address: 1. Revenue Diversification - A jurisdiction should adopt a policy(s) that encourages a diversity of revenue sources in order to improve the ability to handle fluctuations in individual sources. (NACSLB Practice 4.6) 2. Fees and Charges - A jurisdiction should adopt policy(s) that identify the manner in which fees and charges are set and the extent to which they cover the cost of the service provided. (NACSLB Practice 4.2) 3. Use of One-time Revenues - A jurisdiction should adopt a policy(s) discouraging the use of one-time revenues for ongoing expenditures. (NACSLB Practice 4.4) 4. Use of Unpredictable Revenues - A jurisdiction should adopt a policy(s) on the collection and use of major revenue sources it considers unpredictable. (NACSLB Practice 4.4a)

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GFOA Recommended Practice, Adoption of Financial Policies

Expenditure Policies The expenditures of jurisdictions define the ongoing public service commitment. Prudent expenditure planning and accountability will ensure fiscal stability. At minimum jurisdictions should have policies that address: 1. Debt Capacity, Issuance, and Management -A jurisdiction should adopt a policy(s) that specifies appropriate uses for debt and identifies the maximum amount of debt and debt service that should be outstanding at any time. (NACSLB Practice 4.3, 4.3a, GFOA Recommend Practices pp.90-92) 2. Reserve or Stabilization Accounts - A jurisdiction should adopt a policy(s) to maintain a prudent level of financial resources to protect against the need to reduce service levels or raise taxes and fees due to temporary revenue shortfalls or unpredicted one-time expenditures. (NACSLB Practice 4.1) 3. Operating/Capital Expenditure Accountability - A jurisdiction should adopt a policy(s) to compare actual expenditures to budget periodically (e.g., quarterly) and decide on actions to bring the budget into balance, if necessary. (NACSLB Practice 7.2)

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GFOA Recommended Practice, Adoption of Financial Policies

References
National Advisory Council on State and Local Budgeting.

Recommended Budget Practices: A Framework for Improved State and Local Government Budgeting. GFOA, 1998. A Guide for Preparing a Debt Policy, Patricia Tigue, GFOA, 1998. GFOA Recommended Practice. "Setting of Government Charges and Fees" (1996). "Elements of a Comprehensive Local Debt Policy," Government Finance Review, October 1994. "Developing Formal Debt Policies," Government Finance Review, August 1991.

Recommended by the GFOA Management, January 31, 2001.

Committee

on

Governmental

Budgeting

and

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5. ADVANTAGES OF ADOPTING GFOAS FINANCIAL POLICIES

Improves governance: o Highlights policies of sound financial management; o Improves the understanding of budget orientations; o Allows to debate and approve annually budget guidelines at the municipal Council; o Improves transparency; o Improves equity between generations; o Improves financial and administrative management; o Improves the democratic process. Once formally adopted, improves managements ability to enforce policies. Provides enhanced protection for citizens, municipal entities, from certain difficulties.

Highlights current policies and facilitate the implementation of new policies

and management practices.

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 Cities that adopt GFOAs practices are officially recognized by the GFOA (Appendix 1) and credit rating agencies take this into account in their evaluation. In general, Ontario cities have better credit ratings because they adopt and use higher financial standards. Consequently one can predict improved credit ratings for those municipalities.

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6. REASONS TO ADOPT FINANCIAL POLICIES

Over the years most cities have adopted good management principles. Even though these practices exist they are rarely summarize in the budget document. The Quebec municipal law lists a number of practices including the obligation of having a balanced budget. The Quebec Municipal Affairs Department publishes a Manual on the Presentation of Municipal Financial Information (Updated October 2001). Municipalities must adopt and follow those practices. (Appendix 2) GFOA is formally committed to encouraging governments to implement the recommendations of the Budget Council. We believe this proposed recommended practice could serve as a strong practical impetus for governments to implement many, if not all, of the Budget Councils recommendations on financial policies. This proposed recommended practice is not a novel or radical departure from current budgetary practice, but rather builds upon and supports what many governments are already doing. By asking governments to formally adopt and clearly communicate the rules of engagement governing the budget process, this proposed recommended practice offers the promise of significant practical benefits to all stakeholders in the budget process and encourages their active and informed participation.

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What we propose is consistent with Quebec Public Administration Bill 82 (Appendix 3) which: States that the Government should prioritize, in the design and implementation of public administration rules, quality of services provided to its citizens; Specifies management practices should be based on results with previously determined objectives and consistent with transparency guidelines; Acknowledges the role of elected officials with respect to governmental actions and their contribution to improving services to its citizens by encouraging the accountability of the government to the National Assembly. Our proposal is consistent with Ontarios Bill 46, An Act respecting the accountability of public sector organizations, 2001. (Appendix 4) This proposed bill: Requires that state funded bodies manage their activities consistent with recognized best practices (measuring performance against established goals, financial practices, business plans); Applies to all public sector organization that receives government financial assistance and most specifically municipalities, school boards, hospitals, colleges and universities and other Crown agencies, etc.

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What we propose goes in the same direction as the bill 106 (see appendix 5) who authorizes the Minister of Affaires municipales et de la Mtropole: To introduce, after consultation with the municipalities representative organizations, the indicators of performance relating to the administration of the municipalities and other municipal organizations To prescribe the conditions and procedures of establishment To also allow him to prescribe the methods of how the citizens must be informed of the actual results through the applied indicators of performance. We believe our proposal is also a required additional step to Quebecs municipal mergers law (Bill 170). Moreover, the Canadian Institute of Chartered Accountants (CICA) is in the process of reevaluating the accounting standards. The committee has been given the task of examining the changes that must be made to quickly fix loopholes in Canadian accounting standards. The work of the committee is a result amongst others of the ENRON bankruptcy. CICA will soon recommend measures of disclosure on asset condition, deferred maintenance and on governments infrastructure management plan.

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The budget document for the City of Regina, Saskatchewan, provides an excellent example of the type of approach we wish to recommend. Those budget principles were adopted in 1989. You will find in appendix 6 a copy of the relevant pages of that document. The City of Yellowknife has implemented the GFOA Recommended Practice, Adoption of Financial Policies in its 2001 Budget.

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7. SUMMARY
For municipal bodies, adopting financial policies: Is consistent with the trend towards improved transparency; Improves financial and budgetary management; Improves disclosure of long-term financial and budgetary orientations to all stakeholders; Improves the accountability of municipal and provincial governments; Encourages greater participation of taxpayers; Allows auditors to improve their reports on financial performance of municipal bodies.

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8. RECOMMENDATIONS
While the adoption of financial policies should apply to all government bodies, we limit ourselves in this document to municipal entities. To recommend to Municipal Councils to use GFOAs financial practices as a base in the budgetary process of municipalities. To develop measures to help municipalities to implement these financial and budgetary practices.

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The GFOAs 100th annual conference will be held in Montreal in

2006

This conference will host more than 8 000 participants.

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APPENDIX 1
Government Finance Officers Association Awards Criteria

Distinguished Budget Presentation Awards Program

(and explanations of the Criteria)

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Distinguished Budget Presentation Award (Budget Awards Program) The Budget Awards Program is designed to encourage governments to prepare budget documents of the highest quality to meet the needs of decision-makers and citizens. During FY 2001, approximately 925 governments are expected to submit budgets to the program. To be eligible to the award budget documents have to cover the four areas listed below with criteria to follow in each one: A. Policy Document B. Financial Plan C. Operations Guide D. Communication Device

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Distinguished Budget Presentation Awards Program Government Finance Officers Association Awards Criteria
** Note: Mandatory Criteria must be satisfied by applicant to receive award ** A. POLICY DOCUMENT 1. The document should include a coherent statement of organization-wide financial and programmatic policies and goals that address long-term concerns and issues. 2. The document should describe the organization's short-term financial and operational policies that guide the development of the budget for the upcoming year. 3. The document should include a coherent statement of goals and objectives of organizational units (e.g., departments, divisions, offices or programs). 4. Mandatory: The document shall include a budget message that articulates priorities and issues for the budget for the new year. The message should describe significant changes in priorities from the current year and explain the factors that led to those changes. The message may take one of several forms (e.g., transmittal letter, budget summary section).

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B. FINANCIAL PLAN 1. The document should include and describe all funds that are subject to appropriation. 2. Mandatory: The document shall present a summary of major revenues and expenditures, as well as other financing sources and uses, to provide an overview of the total resources budgeted by the organization. 3. Mandatory: The document shall include summaries of revenues, and other resources, and of expenditures for prior year actual, current year budget and/or estimated current year actual, and proposed budget year. 4. Mandatory: The document shall describe major revenue sources, explain the underlying assumptions for the revenue estimates and discuss significant revenue trends. 5. Mandatory: The document shall include projected changes in fund balances, as defined by the entity in the document, for governmental funds included in the budget presentation, including all balances potentially available for appropriation. 6. The document should include budgeted capital expenditures and a list of major capital projects for the budget year, whether authorized in the operating budget or in a separate capital budget.

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7. The document should describe if and to what extent capital improvements or other major capital spending will impact the entity's current and future operating budget. The focus is on reasonably quantifiable additional costs and savings (direct or indirect) or other service impacts that result from capital spending. 8. Mandatory: The document shall include financial data on current debt obligations, describe the relationship between current debt levels and legal debt limits, and explain the effects of existing debt levels on current and future operations. . 9. Mandatory: The document shall explain the basis of budgeting for all funds, whether GAAP, cash, modified accrual, or some other statutory basis.

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C. OPERATIONS GUIDE 1. Mandatory: The document shall describe activities, services or functions carried out by organizational units. 2. The document should provide objective methods to measure progress toward accomplishing the government's mission as well as specific unit and program goals and objectives. 3. Mandatory: The document shall include an organization chart(s) for the entire organization. 4. Mandatory: A schedule(s) or summary table(s) of personnel or position counts for prior, current and budgeted years shall be provided, including descriptions of significant changes in levels of staffing or reorganizations planned for the budget year.

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D. COMMUNICATION DEVICE 1. The document should provide summary information, including an overview of significant budgetary issues, trends, and resource choices. Summary information should be presented within the budget document either in a separate section (e.g., executive summary) or integrated within the transmittal letter or other overview sections. 2. The document should explain the effect, if any, of other planning processes (e.g., strategic plans, long-range financial plans, capital improvement plans) upon the budget and budget process. 3. Mandatory: The document shall describe the process for preparing, reviewing and adopting the budget for the coming fiscal year. It should also describe the procedures for amending the budget after adoption. If a separate capital budget process is used, a description of the process and its relationship to the operating budget should be provided. 4. Mandatory: Charts and graphs shall be used, where appropriate, to highlight financial and statistical information. Narrative interpretation should be provided when the messages conveyed by the graphs are not self-evident. 5. The document should provide narrative, tables, schedules, cross-walks or matrices to show the relationship between different revenue and expenditure classifications (e.g., funds, programs, organization units).
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6. Mandatory: The document shall include a table of contents to make it easy to locate information in the document. 7. A glossary should be included for any terminology (including abbreviations and acronyms) that is not readily understood by a reasonably informed lay reader. 8. The document should include statistical and supplemental data that describe the organization and the community or population it serves, and provide other pertinent background information related to the services provided. 9. The document should be printed and formatted in such a way to enhance understanding and utility of the document to the lay reader. It should be attractive, consistent and oriented to the reader's needs. April 2001

All rights reserved. The awards criteria and explanations may not be reproduced in whole or in part without written permission from the Government Finance Officers Association, 180 North Michigan Avenue, Suite 800, Chicago, IL 60601-7476.

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APPENDIX 2 QUBEC FINANCIAL INFORMATION MANUAL

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THE MANUAL

(Updated October 2001 )

The Quebec Manuel de la prsentation de l'information financire municipale is used by all municipal bodies including local and regional municipalities, urban or metropolitan communities, inter-municipal agencies and public transport commissions.

This manual includes amongst other things general notions, accounting policies, chart of accounts definitions and guidelines for the presentation of financial information. It defines accounting methods and provides information on the particulars of municipal accounting in Quebec.

Financial reports and budgetary forecasts of municipal bodies must follow principles and rules spelled out in the manual and reflect legislative dispositions that govern the presentation of financial information.

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APPENDIX 3:

Quebec Public Administration Act (Bill 82)

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The government management framework shall focus more specifically on (1) Responsiveness, in making management decisions, to the expectations expressed by the public in light of available resources; (2) (3) The achievement of results in relation to stated objectives; Greater flexibility, through the adaptation of management rules to the particular situations of departments and bodies; (4) Recognition of the role of deputy ministers and chief executive officers in implementing controls in relation to results-based management; (5) (6) (7) Accountability reporting based on performance in achieving results; Optimum use of the resources of the Administration; Giving the National Assembly access to relevant information on the activities of the Administration.

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For the purposes of this Act, the Administration comprises: (1) The departments of the Government;

(2)

All budget-funded bodies, namely all bodies all or part of the expenditures of which are provided for in the estimates tabled in the National Assembly otherwise than under a transferred appropriation All bodies whose personnel is appointed in accordance with the Public Service Act (chapter F-3.1.1); All bodies a majority of the members or directors of which are appointed by the Government or by a minister and at least half of the expenditures of which are borne directly or indirectly by the consolidated revenue fund.

(3)

(4)

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APPENDIX 4

A PROPOSED ACT (BILL 46) RESPECTING THE ACCOUNTABILITY OF PUBLIC SECTOR ORGANIZATIONS

PROVINCE OF ONTARIO

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1. The following are the purposes of this Act: 1. To initiate best practices in public sector organizations by measuring their performance against their established goals and by reporting publicly on the progress made. 2. To improve program effectiveness and accountability to the public by promoting a stronger focus on the results and the quality of service of public sector organizations. 3. To improve the delivery of service by requiring that each public sector organization prepares a plan to meet identified objectives and to provide information about the results and quality of service that are achieved. 4. To improve decision-making in public sector organizations by ensuring that relevant information is made available to the public about the organization's objectives and about the effectiveness and efficiency of its activities. 5. To improve the fiscal responsibility of public sector organizations by requiring them to prepare a balanced budget each year.

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2.

The following entities are the public sector organizations to which this Act applies:

1. Every agency of the Crown in right of Ontario and every authority, board, commission, corporation, office or organization of persons a majority of whose directors, members or officers are appointed or chosen by or under the authority of the Lieutenant Governor in Council or a member of the Executive Council. 2. The corporation of every municipality in Ontario. 3. Every local board as defined in the Municipal Affairs Act and every authority, board, commission, corporation, office or organization. 4. Every board as defined in the Education Act. 5. Every university in Ontario and every college of applied arts and technology and post-secondary institution in Ontario. 6. Every hospital. 7. Every board of health under the Health Protection and Promotion Act and every board of health under an Act of the Assembly that establishes or constitutes a regional municipality.

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APPENDIX 5

An Act to amend various legislative provisions concerning municipal affairs

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EXPLANATORY NOTES

This bill enacts, amends or removes various provisions governing municipal bodies. The bill amends the Act respecting the Ministre des Affaires municipales et de la Mtropole to provide for a power authorizing the Minister to establish, after consultation with bodies representing municipalities, performance indicators in relation to the administration of the municipalities and other municipal bodies, and to prescribe the conditions and implementation procedures. The Minister is also empowered to prescribe the terms according to which the citizens are to be informed of the results measured using the performance indicators.

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ACT RESPECTING THE MINISTRE DES AFFAIRES MUNICIPALES ET DE LA MTROPOLE 175. The Act respecting the Ministre des Affaires municipales et de la Mtropole
(R.S.Q., chapter M-22.1) is amended by inserting the following section after section 17.6 : "17.6.1. The Minister may, after consultation with the bodies representing municipalities including the Union des municipalits du Qubec and the Fdration qubcoise des municipalits locales et rgionales (FQM), establish performance indicators that relate to the administration of municipal bodies and prescribe the conditions and procedures for the implementation of the indicators in municipal bodies. The Minister may, for that purpose, classify municipal bodies into categories and establish performance indicators or conditions and procedures of implementation that may vary according to the categories of municipal bodies. The Minister may also prescribe the manner in which municipal bodies are to provide citizens with the information determined by the Minister regarding the results measured using the performance indicators. The Minister may exempt any municipal body from the application of performance indicators for any period the Minister determines. For the purposes of this section, "municipal bodies" means the bodies referred to in section 5 of the Act respecting Access to documents held by public bodies and the Protection of personal information (chapter A-2.1)."
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APPENDIX 6

City of Regina

Budget Principles

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REGINA BUDGET PRINCIPLES

Budget principles were first defined during the 1989 budget process, and were reviewed and updated in each successive budget process. The principles included: 1. The City will pursue continuous improvement of quality of life through social and economic development which respects the sustainability capacity of our human, fiscal and environmental resources. Should a mill rate increase be required, the city will keep mill rate increases at or below inflation. The City will produce a balanced budged each year and ensure operating results achieve a balanced position or surplus. The City will preserve basic, established service levels to community-based organizations. The City will preserve and renew its infrastructure, as a priority over developing new infrastructure. The Utility will be self-supporting, with revenues covering capital and operating costs. The utility will transfer funds to the Citys general operating budget to help pay for services that benefit all Regina citizens. Utility rates will be established to ensure equity and the Citys commitment to conservation.
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2.

3.

4.

5.

6.

7.

The City will fund general capital projects on a pay as you go basis , with the use of debt financing used for utility capital projects, or significant, nonrecurring general capital projects. The City will maintain or improve tax comparisons with Winnipeg, Saskatoon, Calgary and Edmonton. The City will continue to review and adjust user fees as necessary to ensure that the funding of services maintains a reasonable balance between user fee revenues and funding from the general revenue base of the City. The City will maintain strong financial reserves. The City will maintain or improve the current AA+ rating. The City is committed to enhanced staff development, training, communication, participation and employee health. The City will maintain the financial sounded of employee pensions plans.

8.

9.

10. 11. 12.

13.

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