Town Of Moraga

Balanced Budget Policy

At its November 18 meeting, the Town Council adopted a structurally balanced budget policy recommended by the Audit and Finance Committee. The new policy provides parameters for adopting and maintaining a balanced budget where recurring revenues fully support recurring expenditures. The use of one-time revenues (e.g., proceeds from the sale of a property or reserves) to support ongoing expenditures is not desirable since the practice is not financially sustainable. The policy clarifies the parameters and allows exceptions for prolonged economic downturns and/or natural disasters. While the Town has always adopted structurally balanced budgets, this policy reinforces and strengthens the Town’s commitment to long-term financial sustainability.

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