The Finance Department is responsible for maintaining the books, records and the general system of accounting for the City, including each of its departments and offices, in accordance with Generally Accepted Accounting Principles for municipal accounting. The Department is responsible for the disbursement of all monies of the City, pursuant to rules and regulations as prescribed by City Ordinances, as well as the collection of all taxes, special assessments, fees, amounts owed and claims due the City from numerous sources.
The Department is responsible for the implementation of an effective fund accounting system, budget compliance, and internal control structure. The Department maintains cash management relations regarding the deposit and investment of funds in custody and under control of the City as directed by the City Council. The Department submits internal financial statements to assist management in ongoing evaluations of services.
The Finance Department is also responsible for budgetary controls, vendor and banking relations, fixed asset maintenance, financial reporting, auditing and budget preparation. Review and coordination of payroll and employee benefits are managed by the Human Resources Administrator, whose funding for these activities is through the Finance Department.
The accounts of the City are organized on the basis of funds and account groups in conformity with generally accepted accounting principles. All funds of the City, except the Pension Trust Fund, are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when they become measurable and available and expenditures are recognized when the related fund liability is incurred. General fixed assets are recorded as expenditures at the time of purchase.
The Pension Trust Fund reflects the accrual basis of accounting. Under this method of accounting, expenses are recorded when incurred and revenues are recognized when earned.
The City operated on a fiscal year which commences on July 1 and ends on June 30 of the following calendar year (the "fiscal year").
The City Council annually engages an independent certified public accountant for the purpose of performing an audit of the books of account, financial records, and transactions of the City.
All cash not restricted by law to specific accounts is pooled and invested by the Finance Director in accordance with an investment policy adopted by city council.
The Finance Department is charged with fulfilling requirements set forth by city council actions surrounding fair and standardized procurement of goods and services for the City.
General Fund Fund Balance is required to maintain a level equal to or greater than 50% of current or upcoming budget year expenditures AND 50% of five year forcasted annual budgeted expenditures . One year reserves are monitored monthly and if reported to be under the 50% threshold, the City Manager has 60 days to present a plan that brings the General Fund fund balance into compliance within two years.