2. The budget document will be prepared so that it facilitates public study and effectively communicates key economic issues and fiscal policies. The budget process will encourage public involvement.

3. By Charter, the budget must be balanced. Revenues must equal or exceed expenditures. As a general rule, current operating revenue needs to be sufficient to support current operating expenditures.

4. Debt or bond financing will not be used to finance current operating expenditures.

5 Every effort will be made to maintain existing levels of essential public services.

6. All enterprise funds will be fully self-supporting, pay their own way and provide for their own system improvement and expansion needs.

7. Each fund will budget for, and pay, their fair share of public utility and public service costs or fees. Each fund is to be treated as though it were a private customer or taxpayer to properly provide for payments between funds.

8. In addition to its annual operating budget, the City will prepare five-year budget projections, as well as, an analysis of its past financial trends to obtain a broader, more comprehensive picture of the impact of decisions involving the current year's budget or other financial plans.

9. The City will develop a program to integrate performance measurement and productivity indicators with the annual budget.

10. Whenever possible, the City will take advantage of technological improvements to improve productivity and lower costs.

11. Budget performance will be monitored and reported on throughout the year. The department managers are an integral part of the budget control process and will be responsible for their individual department=s performance.

12. Prior year=s fund balances are to be treated as a rainy day@ fund and are not to be used in budgeting for operating expenditures.

13. As a target, annual "pay as you go" capital expenditures, including both capital improvement program (CIP) and non-CIP, funded by current General Fund dollars shall be greater than the annual depreciation on non-infrastructure General Fund assets plus current cost of maintaining the City's streets through the annual resurfacing program. Other infrastructure assets will be funded through grants and/or debt financing.

14. The Mayor and Council will annually review and update fiscal policies related to the City budget by December 1st of each year.