Page 84 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Budget 101 Overview

4. Long Term Forecasting
will need to be reviewed and discussed)
The annual operating budget focuses on a single 12-month period. However, spending
and revenue decisions made today have affects that extend beyond a 12-month
period. The purpose of this policy would be to
o Ensure on-going financial sustainability beyond a single fiscal year
o Achieve the Town’ s mission and vision
o Systematically link the annual budget to a multi-year master financial plan.

5. Reserve Policy in Other Funds
will need to be reviewed and discussed)
While the General Fund Reserve is the most important for the Town of Westlake, reserves
in other funds are just as important. For that reason, the funds listed in this policy would
have reserves that are restricted or committed for specific purposes.

6. General Fund Budget Reserves
already incorporated into the Fiscal and Budgetary Policies)
The General Fund is the primary fund used by the Town of Westlake to account for
revenues and expenditures. Accordingly, the General Fund Reserve Policy is intended to
provide the Town with options when responding to unexpected issues and to afford a
buffer against shocks and other forms of risk.

General Fund Budget Reserves requires minimum reserves of total General Fund
Expenditures with amounts committed to:
Property & Casualty Insurance
Severance pay for Sick Leave and Annual Leave
General Liability Insurance Deductibles
Catastrophic events ( unforeseen emergencies - natural disaster)

One of two things must happen in the future if we cannot spend equal to or less than
the revenues received: (1) make future reductions (2) approve new taxes.

Expenditures Ending Percent of
Without Fund Fund Balance
This chart reflects the Fiscal Year Transfers Balance to Expenditures
General Fund Budget FY 12/ 13 $ 4,373,329 $ 5,812,583 133%
Reserves by percentage FY 13/ 14 $ 4,891,099 $ 6,788,964 139%
FY 14/ 15 $ 5,400,728 $ 7,240,729 134%
for the last five years.
FY 15/ 16 $ 6,368,070 $ 8,553,121 134%
FY 16/ 17 $ 7,166,777 $ 10,242,277 143%

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