Page 358 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

I. STATEMENT OF PURPOSE

The overall intent of the following Fiscal and Budgetary Policy Statements is to enable the
Town to achieve a long-term stable and positive financial condition. The watchwords of
the Town’ s financial management include integrity, prudence, stewardship, planning,
accountability, and full disclosure.

The more specific purpose is to provide guidelines to the Town Manager and Finance
Director in planning and directing the Town’ s day-to-day financial affairs and in
developing recommendations to the Town Manger and Town Council.

The scope of these policies generally span, among other issues, accounting, purchasing,
auditing, financial reporting, internal controls, operating and capital budgeting, revenue
management, cash and investment management, expenditure control, asset
management, debt management, and planning concepts, in order to:

A. Present fairly and with full disclosure the financial position and results of the financial
operations of the Town in conformity with generally accepted accounting principles
GAAP), and
B. Determine and demonstrate compliance with finance related legal and contractual
issues in accordance with provisions of the Texas Local Government Code and other
pertinent legal documents and mandates.

The Town Council will annually review and approve the Fiscal and Budgetary Policy
Statements as part of the budget process.

II. SUMMARY OF POLICY INTENDED OUTCOMES

This policy framework mandates pursuit of the following fiscal objectives:

A. Operating Budget: Prepare, conservatively estimate revenues, present, and adopt the
Town’ s annual operating plan.

B. Revenues Management: Design, maintain, and administer a revenue system that will
assure a reliable, equitable, diversified, and sufficient revenue stream to support desired
Town services.

C. Expenditure Control: Identify priority services, establish appropriate service levels, and
administer the expenditure of available resources to assure fiscal stability and the
effective and efficient delivery of services.

D. Fund Balance/ Retained Earnings: Maintain the fund balance and retained earnings of
the various operating funds at levels sufficient to protect the Town’ s credit worthiness as
well as its financial position from emergencies.

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