Page 41 - Mansfieldr FY20 Approved Budget

AMENDMENT TO THE BUDGET

The City of Mansfield operating budget is adopted at the department level. Any transfers that exceed
budgeted expenditures may require City Council approval. Any change orders to budgeted capital
improvement projects must be approved by City Council.

USE OF CONTINGENCY RESERVE

When additional funding is required to offset unexpected revenue shortfalls, unexpected expenditure
increases or events that threaten the public health or safety, contingency operating funds may be
authorized by the City Manager and/or City Council so that budgeted service levels can be maintained.

BUDGETARY AND ACCOUNTING BASIS

The operating budget is developed using Generally Accepted Accounting Principles (GAAP) except that
depreciation and amortization are not budgeted. All funds are budgeted on a modified accrual basis.

OPERATING AND CAPITAL BUDGET RELATIONSHIP/ORGANIZATION

The City of Mansfield Budget for Fiscal Year 2019-2020 is comprised of:

The operating budget, which includes all departmental budgets - General Fund, Debt Service Funds,
Enterprise Funds, Special Revenue Funds and Capital Projects Funds. The operating budget includes
portions of the City’s Strategic Plan which includes both operational and capital requirements.

The operating budget includes a balanced financial plan for all funds for fiscal year 2019-2020 and
forecasts the results of operations by fund for the period. The effect of the Capital Improvement Program
upon operations is reflected in the Capital Projects Fund. The operating budget includes fund summaries
and presentations by City operating departments without regard to fund. Each division is divided into
operating departments, and a budget summary by department is included for each division. Performance
measures are incorporated for each department within each division.

The Capital Project Fund is presented on a budget basis. The Capital Fund Projects include the Street
Construction Fund, Utility Construction Fund, Building Construction Fund, MPFDC Construction Fund,
MEDC Construction Fund, Environmental Services Construction Fund and the Equipment Replacement
Fund. State Law requires an adequate budget to pay for the entire construction contract and appropriated
in the period in which the contract is entered; therefore, expenditures are presented on a budget basis as
opposed to cash flow basis.

Funding sources for the Capital Improvement Program are presented on a budget basis. The revenue
sources are presented in the period that the funding will be realized in order to provide continuity between
the operating budget and the capital budget. As a result of presenting on a budgetary basis, funding
sources may not equal budgeted expenditures in each period, creating a positive fund balance as cash
accumulates for larger expenditures in later years.

41