Page 46 - Mansfieldr FY20 Approved Budget

month. The monthly report shall present the financial condition of the City in a user friendly and
understandable format consistent with the budget.

Revenue Policies

To protect the City’s financial integrity, the City will maintain a diversified and stable revenue system to
shelter it from fluctuations in any one revenue source.

For every annual budget, the City shall levy two property tax rates: operation/maintenance and debt
service. The debt service levy shall be sufficient for meeting all current principal and interest payments.

The debt service levy and related debt service expenditures shall be accounted for in the Debt Service
Fund. The operation and maintenance levy shall be accounted for in the General Fund.

The City will maintain a policy of levying the lowest tax rate on the broadest tax base. Legally allowable
exemptions may be provided to homeowners, senior citizens, and disabled veterans.

The City will establish user charges and fees at a level that attempts to recover the full cost of providing
the service. User fees, particularly utility rates, should identify the relative costs of service for different
classes of customers. When possible, utility rates should be designed to reduce peak (hour and day)
demands on the utility systems.

The City will make every reasonable attempt to ensure accurate measurements of variables impacting
taxes and fees (e.g. verification of business sales tax payments, verification of appraisal district property
values, and accuracy of water meters.)

The City will attempt to maximize the application of its financial resources by obtaining supplementary
funding through agreements with other public and private agencies for the provision of public services or
the construction of capital improvements.

The City will consider other market rates and charges levied by other public and private organizations for
similar services in establishing tax rates, fees and charges.

When developing the annual budget, the Business Services Division shall project revenues from every
source based on actual collections from the preceding year and estimated collections of the current fiscal
year, while taking into account known circumstances which will impact revenues for the new fiscal year.
The revenue projections for each fund should be made conservatively.

Operating Expenditure Policies

Operating expenditures shall be accounted, reported, and budgeted for in the following major categories:
operating, recurring expenditures including personnel services, supplies, maintenance, contractual
services, and capital replacement/lease. The annual budget shall appropriate sufficient funds for operating
and recurring expenditures necessary to maintain established quality and scope of City services.

The City will constantly examine the methods for providing public services in order to reduce operating,
recurring expenditures and/or enhance quality and scope of public services with no increase in cost.
Personnel service expenditures will reflect the minimum staffing needed to provide established quality
and scope of City services. To attract and retain employees necessary for providing high-quality service,
the City shall maintain a compensation and benefit package competitive with the public and, when

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