Local Agency Financial Policies & Practices
Financial policies can provide a solid foundation for sound public agency fiscal practices.
Adopted by the governing body, such policies provide:
- A means through which the governing body can communicate its collective policy judgments and goals to staff, the public and others.
- Direction to staff and standards against which
- Current practices can be measured and
- Proposals for changes in practices can be evaluated.
Ratings agencies (who assess local agencies’ credit for borrowing) also look at local agencies’ financial policies; well crafted polices can mean higher rating grades which can translate into lower borrowing costs.
For more information, including questions to ask about financial policies, see information at right.