Where Does the Money Come From to Fund City Government? by Carl Dameron - City News Group, Inc.
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Where Does the Money Come From to Fund City Government?

By Carl Dameron, Community Writer
December 3, 2015 at 09:46am. Views: 85

The City of Moreno Valley recently hosted a regional information session led by Michael Coleman, one of California's most recognized experts in local government finance. Moreno Valley residents, representatives from regional agencies, students, and others from within Riverside County learned in detail about government finance at the day-long seminar. "I am a strong advocate for informed decision making. One of the most important aspects to local government is how funding is derived and spent. Thus, understanding how the system of revenue and spending works helps the public understand how and why certain decisions are made by the City Council. This allows for informed participation in our City government," says Council Member Jeffrey Giba who led the effort to hold the seminar. One attendee explained that she is now more equipped to attend and participate in City Council meetings. During the session participants learned: Where do cities get their revenue? Moreno Valley’s $85,793,631 annual budget comes from: property tax, sales tax, utility users tax, franchise fees, business gross receipts, charges for services, use of money and property, licenses & permits, fines and forfeitures, franchise fees and of course miscellaneous. How are budgets created? The City of Moreno Valley adopts a two-year budget to plan the use of resources available to provide services for residents and businesses. The next two-year cycle begins July 1, 2015. The Proposed Budget presents projected operating revenues and expenditures for the two fiscal years: Fiscal Years (FY) 2015/16 – 2016/17. The budget includes all component units of the City, including the General Fund, Community Services District and Housing Authority. The Budget includes both Operating Budgets and Capital Improvement Project budget requests for projects provided in the separate Capital Improvement Plan (CIP) as adopted by the City Council on May 26, 2015. Pensions and Other Post-Employment Benefits - What are the key issues? The City has unfunded long-term liabilities for post-employment benefits to be paid to those employees that have worked for the City and their survivors. These benefits include pensions, retiree medical benefit and payoff of leave balances (compensated absences) upon retirement. An effective resolution requires a collaborative approach among employees, management, elected officials and an engaged and well-informed public. How are financial policies established? The State of California and Moreno Valley City Council set financial policies. Who audits the books? The City of Moreno Valley’s Financial Operations Division provides full accounting services for the City, Community Services District and Successor Agency including internal and external reporting, payroll, and accounts payable. This division also administers the annual audit process, produces the annual Comprehensive Annual Financial Reports and is responsible for determining the propriety and legality of all financial transactions in accordance with laws, regulations, accounting standards, and council and administrative policy. To review the city’s 631-page comprehensive budget go to http://www.moval.org/city_hall/departments/fin-man-serv/budgetoffice.shtml

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