Page 82 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Budget 101 Overview

Fund Balance Reporting - The Town shall report governmental fund balances per GASB
54 definitions in the balance sheet as follows: Non-spendable, Restricted, Committed,
Assigned, Unassigned

General Fund Unassigned Fund Balance - The Town shall strive to maintain the General
Fund unassigned fund balance at 90 days of operation.

Use of Fund Balance - Fund Balance will be targeted to only be used with Council
approval and can 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.

Approval of Commitments - The Town Council shall approve all commitments by formal
action.
o 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 after fiscal year-end.
o A commitment can only be modified or removed by the same formal action.
o The Town Council delegates the responsibility to assign funds to the Town
Manager or his/ her designee.
o The Town Council shall have the authority to assign any number of funds.
o Assignments may occur after fiscal year-end.
o The Town Council will utilize funds in the following spending order: Restricted,
Committed, Assigned, and Unassigned.

NONSPENDABLE FUND RESTRICTED FUND ASSIGNED FUND UNASSIGNED FUND COMMITTED FUND
BALANCE BALANCE BALANCE BALANCE BALANCE
Portion of net This term will is used This term is used to The residual net The portion of fund
resources that cannot to describe net fund describe the portion of resources in excess of balance constrained
be spent because of resources subject to fund balance that what is properly by limitations imposed
their form and externally enforceable reflects a categorized in one of by government at its
because they must be legal restrictions. government’ s the other four highest level and
maintained intact. intended use of categories. remains binding unless
resources. removed in the same
manner.

FUTURE GFOA POLICIES TO DISCUSS

The Town of Westlake has several relevant financial policies to preserve and enhance the fiscal
health of the Town. We also identify acceptable and unacceptable courses of action, and
provide a standard to evaluate the school’ s fiscal performance.

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