Page 407 - Keller FY20 Approved Budget

CITY OF KELLER
Financial Management Policies

1. Purpose of Policies.

1.1 The City of Keller (the City) is committed to sound financial management through
integrity, prudent stewardship, financial planning and accountability, full disclosure, and
communication. Financial Management Policies will enable the City to achieve and maintain a
stable, positive financial condition, while also providing guidelines for the day-to-day planning and
operations of the City's financial affairs.

1.2 The City will establish and maintain a high standard of accounting practices. The City's
accounting system shall conform to generally accepted accounting principles (GAAP), as
prescribed by the Governmental Accounting Standards Board (GASB) for governmental entities.

1.3 The City will prepare and maintain in a current status written administrative procedures
relating to each financial management area. The City Manager, department directors, and
managers are responsible for ensuring that good internal controls are maintained and followed
throughout their respective City departments, that all management directives or internal control
recommendations are implemented in a timely manner, and that all independent auditor
recommendations are addressed.

1.4 The City will pursue transparency with regard to disclosure of financial information.
Accordingly, the City will seek to attain the highest Texas Comptroller of Public Accounts
Transparency award without placing any unnecessary burdens on staff. A primary focus of
financial transparency is the ability for citizens to review the City’s financial information online. At
a minimum, online information will include annually adopted budgets, comprehensive annual
financial reports, and check registers.

1.5 These financial management policies shall remain in effect until amended by the City
Council. The City Council shall review the policies annually, and amend as necessary.

2. Operating Budgets.

2.1 Annual estimates of revenue in both the general fund and enterprise funds shall be based
on historical trends and a reasonable expectation of growth. A conservative approach shall be
observed in estimating revenues, so that revenue estimates will not be overstated. Annual Water
and Wastewater Enterprise Fund revenues shall be budgeted on the basis of a normalized year,
with reasonable estimates of customer growth, not on the basis of forecasted above-average
rainfall (wet year) or below-than-average rainfall (dry year).

2.2 The adoption of an operationally balanced budget shall be required. An operationally
balanced budget shall be defined as a budget in which on-going revenues equal or exceed on-
going expenditures and one-time expenditures may be funded with undesignated fund balance.
In addition, current resources (current revenues plus undesignated fund balances) will equal or
exceed current expenditures (on-going plus one-time expenditures) for each individual fund.

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