(A) Revenues.
(1) Diversification and stabilization. The town will maintain a diversified and stable revenue system as a protection from short-run fluctuations. The town will strive to diversify the revenue base, reducing its dependency on property taxes and intergovernmental transfers. To encourage diversity within the local economy, the town will support policies that promote tourism, agriculture, commercial and industrial employment.
(a) One-time revenues. The use of one-time revenues shall be limited to the purpose for which they are intended, or for a capital expenditure, and not to subsidize costs such as recurring personnel, operation, and maintenance.
(b) New revenues. For any proposed additional revenue source, the Town Council will consider the following criteria:
1. Community acceptability;
2. Competitiveness. The revenue or tax burden of the town relative to neighboring communities;
3. Diversity. The balance of revenue sources that can withstand changes in the business cycle;
4. Efficiency. The cost of administering a tax or fee should bear a reasonable relation to revenues collected, and any new tax or fee should have minimal effect on private economic decisions; and
5. Fairness. The distribution of the town's revenue burden shall be as progressive as possible measured by ability to pay, the benefits received, or the community's definition of the resident's fair share of the revenue burden.
(2) Forecasting. Town revenues shall be forecast conservatively, using an objective and analytical approach. Where practical, historical tending and econometric forecasting shall be used to maintain consistency and enhance reliability. Budget estimates shall be compared to actual results on a periodic basis to determine the validity of assumptions made during the formulation of estimated revenues.
(3) User fees. User fees will be developed and continually reviewed to ensure they recover the cost of services that are not universal to all taxpayers. In Proprietary Funds, user fees will provide full coverage of direct and indirect costs including depreciation. In the Park and Recreation Fund, user fees will be maintained at a level to cover operating costs exclusive of facility costs.
(B) Expenditures.
(1) Maintenance of capital assets. Within the resources available each year, the town shall maintain capital assets and infrastructure at a sufficient level to protect the town's investment, to minimize future replacement and maintenance costs, and to continue service levels.
(2) Full funding of pension and other post-retirement systems. The annual budget will provide for the full funding of the employee retirement systems as recommended by the town's actuary.
(3) Program review/privatization. It is the town's intent to control personnel costs as a proportion of the total budget, to more productively and creatively use available resources, and to avoid duplication of effort and resources. The town will encourage delivery of services by other public and private organizations whenever and wherever greater efficiency and effectiveness can be expected. The town will develop and internally use technology and productivity advancements that will help reduce or avoid increasing personnel costs.
(Ord. passed 5-7-07)