Sixteen Mile Sports Complex | Officially opened ... - Oakville

Financial policiesThe following financial policies establish the frameworkfor the Town of Oakville’s overall fiscal planning andmanagement. The success of the town’s budget processrests on a solid foundation of budget principles. Theseprinciples may be summarized as follows:1. SustainabilityThe annual budget incorporates a long-term perspectiveand should be affordable today and in thefuture. The town’s budget shall be in compliance withthe Municipal Act and thus must be balanced and shallnot plan for a deficit. The use of one-time revenuesshall not be incorporated into the town’s base budgetand revenue diversification should be maximized.2. InterdependencyThe operating and capital budgets must be reviewedwith a coordinated effort. It must be recognized thatcapital expenditures, financing decisions and strategieswill impact on future operating budgets.3. AffordabilityThe assumption of new assets and infrastructure andthe replacement of existing assets will be well planned,and appropriate financing strategies and means will beutilized to minimize the financial impact and ensurethat the tax rate is maintained at manageable levels.Growth related infrastructure is funded primarilythrough development charges in accordance with theDevelopment Charges Act. Funding for non-growthinfrastructure is funded through tax revenues. Thetown prepares multi-year operating and 10-year capitalforecasts to evaluate the town’s ability to afford newprograms, service levels changes and new facilities.The compliance to PSAB 3150 Tangible Capital Assets,provides the town with the asset foundation and valuesto assist the town in managing their future infrastructurerenewal needs.4. Fee for ServiceThe town will ensure that user fees will be utilizedto cover costs of appropriate services and are subjectto annual review.5. Management PrinciplesThe town will maximize program efficiencies whilemaintaining program effectiveness. The annual budgetwill focus on results and outcomes. The safeguardingof the town’s assets and resources shall be a keymanagement objective. Town management andstaff review the numerous programs provided by alldepartments in order to ensure community needs arebeing met.Operating budget controlsThe town has adopted various policies that allowdepartments to effectively manage programs andservices for which they are accountable. These policiesestablish a hierarchy of authority for adjusting betweenbudget appropriations. The general accountabilitiesand allowable adjustments are as follows:• Departmental services approved by Council arecarried out within the department’s net expenditureapprovals, and deviations from this policy arereported to and reviewed by the CAO or Council,as set out herein.• Department heads/commissioners are accountableto the treasurer/deputy treasurer, the chiefadministrative officer and Council for theirspending, revenue generation and service deliveryperformance against budget approvals.• Revenues received beyond the level provided forin the budget shall not be spent or committed withoutCouncil approval. At year-end, such remainingrevenues become part of the town surplus.• Reallocations between object codes that do notaffect the net operating budget of a specific programmay be made by a department head and may beimplemented on both expenditures and revenues.• The transfer of approved budgets of not more than$50,000 in respect of each reallocation betweenprograms within a department that do not affect thenet operating budget for the department shall requirethe approval of the commissioner, if applicable, thetreasurer/deputy treasurer and the CAO. Any suchreallocation shall be reported as part of the quarterlyvariance report. Reallocation of approved budgetsin excess of $50,000 requires Council approval.• The transfer of approved budgets between programsand/or services affecting the net operatingbudget for a department shall require the approvalof the treasurer/deputy treasurer and the CAO priorto seeking approval of Council.Capital budget controlsThe following points highlight the capital budgetcontrol process:Town of Oakville 2010 Annual Report | 19