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HomeMy WebLinkAboutRes 2026-006 RESOLUTION NO. 2026-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING A LONG-TERM FINANCIAL PLANNING POLICY WHEREAS, the Charter of the City of Palm Desert provides that the City Administrator shall propose budget recommendations for the next fiscal year under the direction of the Mayor and the City Council in the form, in the manner , and at a time as the Council shall prescribe by resolution; and WHEREAS, the City desires to formalize its current long-term planning procedures and policies; and WHEREAS, the City's Adopted Budget and Capital Improvement Program plan designates how all revenues shall be allocated among operations and long-term projects, replacement costs, and facilities; and WHEREAS, the City desires to establish a formal long-term planning policy to meet best practices, support fiscal transparency, and maintain fiscal responsibility; and WHEREAS the City Council has been presented with a draft Long Term Financial Planning Policy in the form attached to this Resolution as Exhibit “A” and by this reference incorporated herein. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council hereby adopts the Long-Term Financial Planning Policy, attached hereto as Exhibit A. SECTION 3. The City Manager is authorized to implement, administer, and periodically review and update the Long-Term Financial Planning Policy, consistent with applicable law and City policy. SECTION 4. The Long-Term Financial Planning Policy shall be incorporated into the City’s Administrative Procedures as Policy No. FIN-016. SECTION 5. This Resolution shall take effect immediately upon adoption. Docusign Envelope ID: 9227EE64-1428-4E50-917E-B0870886FACB Resolution 2026-006 Page 2 ADOPTED ON JANUARY 22, 2026. EVAN TRUBEE MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2026-006 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on January 22, 2026, by the following vote: AYES: HARNIK, NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, on _________________. ANTHONY J. MEJIA CITY CLERK Docusign Envelope ID: 9227EE64-1428-4E50-917E-B0870886FACB 1/23/2026 Resolution 2026-006 Page 3 EXHIBIT A ADMINISTRATIVE POLICY NO. FIN-016 “LONG TERM FINANCIAL PLANNING POLICY” CITY OF PALM DESERT ADMINISTRATIVE PROCEDURES Subject Long Term Financial Planning Policy Policy No. FIN – 016 Date Issued: January 22, 2026 Approved by Resolution No. 2026-006 Authorizing a Long-Term Financial Planning Policy Authored by Finance Department I.PURPOSE The Government Finance Officers Association (GFOA) recommends that governments adopt a long-term financial plan of at least five years into the future. A long-term financial planning policy is intended to assist City leaders (elected officials and City management) in making prudent and informed financial decisions regarding economic development, tax policy and labor negotiations. Credit rating agencies enco urage long-term financial planning and generally favor government entities with such plans when assigning bond ratings. II.POLICY: The City shall adopt a long -term financial plan spanning at least five years for all major City funds (e.g., General, Fire, Housing Authority, Desert Willow, etc.) in conjunction with the proposed annual budget. The long -term financial plan should incorporate the following elements as relevant and appropriate: • An analysis of economic and demographic data at the national, state and local level; • Past revenue and expenditure trends; • Forecast assumptions; • Forecasts of major revenues and expenditures based on known data, documented assumptions, and input from subject matter experts, and various internal and external stakeholders; and • Compliance with existing City fiscal policies. Docusign Envelope ID: 9227EE64-1428-4E50-917E-B0870886FACB