Page 365 - 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

H. Purchasing - The Town shall make every effort to maximize any discounts offered by
creditors/ vendors. Staff shall also use competitive bidding in accordance to State law, as
well as intergovernmental partnerships and purchasing cooperatives to attain the best
possible price on goods and services.

I. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the
prompt payment requirements of State law.

VI. FUND BALANCE/ RETAINED EARNINGS

A. General Fund Undesignated Fund Balance - The Town shall strive to maintain the General
Fund undesignated fund balance at, or in excess of, 90 days of operation.

B. Retained Earnings of Other Operating Funds - In the Utility Fund, the Town shall strive to
maintain positive retained earnings positions to provide sufficient reserves for emergencies
and revenue shortfalls.

C. Use of Fund Balance – The Council delegates the responsibility to assign funds to the Town
Manager or his/ her designee. The Council shall have the authority to assign any amount of
funds. Assignments may occur subsequent to fiscal year-end. The Council will utilize funds
in the following spending order: Restricted, Committed, Assigned, Unassigned

Fund Balance will be targeted to only be used with Council approval and can be only be
used for the following:
Emergencies,
non-recurring expenditures such as technology/ FF& E (furniture, fixtures and
equipment), or major capital purchases that cannot be accommodated through
current year savings.
Should such use reduce the balance below the appropriate level set as the objective
for that fund, recommendations will be made on how to restore it.
The Council shall approve all commitments by formal action. The action to commit
funds must occur prior to fiscal year-end, to report such commitments in the balance
sheet of the respective period, even though the amount may be determined
subsequent to fiscal year-end.
A commitment can only be modified or removed by the same formal action.

VII. DEBT MANAGEMENT

A. Debt Issuance Analysis - All consideration of debt issuance for major capital assets will be
prepared within the framework of a Council approved multi-year capital improvement
plan and forecast for all Town facilities and infrastructure.

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