HomeMy WebLinkAboutr 10546 Adopt Fiscal Responsibility PhilosophyRESOLUTION NO. 10546 (2014 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADOPTING ITS FISCAL RESPONSIBILITY PHILOSOPHY
WHEREAS, the City of San Luis Obispo strives to provide excellent service to the
community at all times, and believes fiscal responsibility is a means for promoting community
health and well - being; and
WHEREAS, the City has a robust financial planning process with a strong foundation of
citizen input and sound fiscal policies to ensure a balanced budget; and
WHEREAS, the City has used its fiscal health contingency plan as a means to
proactively reduce the negative impacts of economic downturns; and
WHEREAS, the City regularly examines its cost and revenue drivers and presents
updated fiscal forecasts to Council; and
WHEREAS, the City recognizes that personnel costs represent a significant portion of
the City's total expenditures and, as such, adopted a Compensation Philosophy and continues to
monitor, report, and propose means to effectively manage those costs; and
WHEREAS, the City will strive to achieve fiscal, economic and environmental
accountability and sustainability, as well as maintain a quality of life residents find desirable for
current and future generations; and
WHEREAS, ultimate accountability for the fiscal health of the community rests with the
elected City Council.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that the City's fiscal responsibility philosophy is adopted as follows:
SECTION 1. The City is committed to fiscal responsibility through good economic
times as well as economic downturns.
SECTION 2. Definition: Fiscal responsibility is the balanced approach to providing the
infrastructure, maintenance, and services that preserve and enhance the quality of life in our
community, as identified and prioritized through community input.
SECTION 3. In achieving and maintaining fiscal responsibility, the City commits to the
following:
A. Informed Decision - making. The City will identify and consider immediate and
long -term economic, social, and environmental impacts of all decisions considered by
the Council.
B. Shared responsibility. The City recognizes a shared responsibility between the
employee and employer to appropriately fund employee benefits, including pension
benefits. Ensuring an appropriate balance is a valuable tool in attracting and retaining
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Resolution No. 10546 (2014 Series)
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well qualified employees that deliver services to the community, while maintaining a
long -term, sustainable, and balanced budget.
C. Increased Transparency. The City will conduct all business, including labor
negotiations and other employee compensation matters, with transparency pursuant to
all applicable laws and regulations. The City will continue to develop tools, such as
key measures and dashboards that make information readily available to community
members in a timely and useful manner.
D. Aligned Investments. The City shall allocate resources in alignment with community
needs and priorities for maintaining and /or adding capital projects, assets, or services.
E. Diversified and Aligned Revenue Sources. The City will pursue diversified
revenue sources that are aligned with expenditures and community priorities.
F. Long -Term Unfunded Liabilities. The City will identify all long -term liabilities,
including unfunded pension obligations and strive to achieve a higher funded portion
of pension obligations; and shall manage all liabilities to maintain and enhance fiscal
responsibility.
G. Continued Efficiency and Effectiveness. The City will explore and implement
operational efficiencies including alternative service delivery, best management
practices, and cost containment measures while preserving effectiveness.
Upon motion of Council Member Smith, seconded by Council Member Ashbaugh,
and on the following roll call vote:
AYES: Council Members Ashbaugh and Smith, Vice Mayor Christianson
And Mayor Marx
NOES: Council Member Carpenter
ABSENT: None
the foregoing resolution was adopted this 1 st day of July 2014.
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Mayor J 2�"rx'
T:
pWony J. ejit, CM
ity Clerk
APPR VED AS T RM:
J hristine Dietrick
City Attorney