Page 372 - 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

made in accordance with the Investment Policy approved by the Town Council for the
Town of Westlake that meets the requirements of the Public Funds Investment Act (PFIA),
Section 2256 of the Texas Local Government Code. The Finance Director will issue
quarterly reports on investment activity to the Town Council.

B. Cash Management - Town’ s cash flow will be managed to maximize the cash available to
invest. Such cash management will entail the centralization of cash collections, where
feasibility, including utility bills, building and related permits and license, fines, fees, and
other collection offices as appropriate. Periodic review of cash flow position will be
performed to determine performance of cash management and conformance to
investment policies. The underlying theme will be that idle cash will be invested with the
intent to (1) safeguard assets, ( 2) maintain liquidity, and (3) maximize return.

C. Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly
accounted for and prudently insured. The fixed asset inventory will be updated regularly.

D. Capitalization Criteria – For purposes of budgeting and accounting classification, the
following criteria must be capitalized:
The asset is owned by the Town of Westlake
The expected useful life of the asset must be longer than one year, or extend the life on
an identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible
On-going repairs and general maintenance are not capitalized
New Purchases – All costs associated with bringing the asset into working order will be
capitalized as part of the asset cost. This includes start- up costs, engineering or
consultant type fees as part of the asset cost once the decision or commitment to
purchase the asset is made. The cost of land acquired should include all related costs
associated with its purchase
Improvements and Replacement – Improvement will be capitalized when they extend
the original life of an asset or when they make the asset more valuable than it was
originally. The replacement of assets components will normally be expenses unless
they are a significant nature and meet all the capitalization criteria.

E. Computer System/ Data Security – The Town shall provide security of its computer/ network
system and data files through physical and logical security systems that will include, but are
not limited to: network user authentications, firewalls, content filtering, spam/ virus
protection, and redundant data backup.

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