The principles of sound financial management establish the framework for overall fiscal planning and management. The principles set forth guidelines for both current activities and long range planning. Following these principles will enhance the Town's financial health as well as its image and credibility with its citizens, the public in general, bond rating agencies and investors.
The policies will be reviewed annually to assure the highest standards of fiscal management. Policy changes will be needed as the Town continues to grow and becomes more diverse and complex in the services it provides, as well as the organization under which it operates to provide these services to its citizens. The Town Manager and staff have the primary role of reviewing and providing guidance in the financial area to the Town Council.
The overall financial goals underlying these principles are:
Fiscal Conservatism - to ensure that the Town is at all times in a solid financial condition, is defined as:
Cash solvency - the ability to pay bills
Budgetary solvency - the ability to balance the budget
Long run solvency - the ability to pay future costs
Service level solvency - the ability to provide needed and desired services adhering to the highest accounting and management practices as set by the Government Finance Officers' Association standards for financial reporting and budgeting, by the Governmental Standards Board and other professional standards.
One-time capital costs are paid for with 1 time revenues
To maintain an Aa3 or better bond rating in the financial community to assure the Town taxpayers that the Town government is well managed and financially sound
To have the ability to withstand local and regional economic fluctuations, to adjust to changes in the service requirements of our community, and to respond to changes in federal and state priorities and funding as they affect the Town's residents
To deliver quality services in an affordable, efficient and cost-effective basis providing full value for each tax dollar