City of Diamond Bar Budget

Fiscal Year 22/23


The City’s budget development is shaped by several financial and operational polices. These policies promote and ensure organizational continuity, consistency, transparency, and responsibility from year to year. This section identifies some of the major short and long-term planning documents, financial and operational policies, and fiscal management tools that the City of Diamond Bar employs in order to guarantee fiscal and programmatic integrity and to guide the development of the City’s budget.

Annual Budget and Financial Reporting Policy

The purpose of this policy is to ensure a balanced annual operating budget and reporting procedures to safeguard public funds and maximize resources available for use by the City in delivering programs and services. A balanced budget is defined as a budget in which sources of income (revenue) is equal to spending uses (expenditures).

CAL Card Use Policy

The City of Diamond Bar has joined the CAL Card program which is administered through the State General Services Division and US Bank. This program provides a mechanism for government agencies to provide purchasing cards to their employees to expedite purchases of goods and services. This policy sets forth policies and procedures for CAL Card usage.

Compensation for City Commissioners/Committee Members

The purpose of this policy is to establish compensation for attendance at Commission/Committee Meetings for City Commissioners/Committee Members.

Drawing Warrants and Checks Upon City Funds

California State law requires the Mayor and City Clerk to execute and countersign all warrants and checks issued for payment from City funds. Government Code Section 37203 provides that the City Council may prescribe an alternative method for drawing warrants and checks. Through adoption of this Policy, the City Council established an alternative method to insure the timely drawing of warrants and checks upon City funds.

Travel, Expense and Reimbursement Policy

The City of Diamond Bar recognizes the value of attendance by City officials and employees at professional conferences, seminars, meetings with other government officials, professional organizations, community organizations, and constituents and ceremonial events and activities that promote or benefit the City. This policy establishes travel authorization, expense, reimbursement, and reporting standards consistent with the provisions of this policy and in compliance with California Government Code Sections 53232.2 and 53232.3.

Fixed Asset Capitalization and Inventory Control Policy

The purpose of this policy is to ensure adequate control and appropriate use of City fixed assets. The procedures are intended to define fixed assets and to establish guidelines for budgeting, purchasing and disposing fixed assets. This policy does not apply to infrastructure assets.

Anti-Fraud Policy

To establish policy and procedures for clarifying acts that are considered to be fraudulent, describing the steps to be taken when fraud or other related dishonest activities are suspected, and providing procedures to follow in accounting for missing funds, restitution and recoveries.

Cash Handling Policy

The purpose of this policy is to safeguard public funds and also to maximize resources available for use by the City in delivering programs and services. These policies recognize the decentralized nature of the receipting and depositing process, while providing for standardized procedures.

Fund Balance and Reserves Policy

The purpose of this policy is to establish a key element of the financial stability of the City by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur for unforeseen revenue fluctuations, unanticipated expenditures, and other unexpected circumstances. The fund balance also provides cash flow liquidity for the City's general operations.

Capital Financing and Debt Management Policy

The purpose of this policy is to provide guidelines for the City's utilization of capital financing and debt for capital improvement projects, property acquisition, and projects whose useful life will exceed the term of the financing.

Unclaimed Funds Policy

The purpose of this policy is to establish the proper disposition and accounting for unclaimed money in accordance with Government Code Sections 50050 through 50056.

Investment Policy

The purpose of this policy is to provide guidelines for the prudent investment of the City's temporarily idle cash and to outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled funds in accordance with the applicable local, state and federal laws.