Page 47 - Mansfieldr FY20 Approved Budget

quantifiable, private service industries. Supply expenditures shall be sufficient for ensuring the optimal
productivity of City employees.

Maintenance expenditures shall be sufficient for addressing the deterioration of the City’s capital assets to
ensure the optimal productivity of the capital assets. Maintenance should be conducted to ensure a
relatively stable level of maintenance expenditures for every budget year.

The City will utilize contract labor for the provision of City services whenever private contractors can
perform the established level of service at less expense. The City will regularly evaluate its agreements
with private contractors to ensure the established levels of service are performed at the least expense to
the City.

Existing capital equipment shall be replaced when needed to ensure the optimal productivity of City
employees. Existing capital equipment associated with General Fund operations in excess of $5,000 will
be charged to individual departments who purchase those items.

Expenditures for additional capital equipment shall be made only to enhance employee productivity,
improve quality of service, or expand scope of service. To assist in controlling the growth of operating
expenditures, operating departments within the General Fund will submit their annual budgets to the City
Manager within a ceiling calculated by the Business Services Department from the General Fund’s Long
Term Financial Plan. Projected expenditures that exceed the ceiling must be submitted as separate
expanded level of service requests.

Fund Balance Policy

The annual budget shall be presented to Council with each fund reflecting an ending fund balance that is
no less than 25% of that fund’s annual operating expenditures. To satisfy the particular needs of
individual funds, ending fund balances may be established which exceed the 25% minimum. Fund
balance that exceeds the minimum level established for each fund may be appropriated for non-recurring
capital projects or programs.

Fund Transfer Policy

With the exceptions noted below, there will be no operating transfers between funds. Any costs incurred
by one fund to support the operations of another shall be charged directly to the fund. (For example,
actual hours worked by General Fund employees for Water & Sewer Fund events.)

Fund transfers may occur when surplus fund balances are used to support non-recurring capital expenses
or when needed to satisfy debt service obligations.

Debt Expenditures

The City will issue debt only to fund capital projects that cannot be supported by current, annual
revenues. To minimize interest payments on issued debt, the City will maintain a regular debt retirement
policy by issuing debt with maximum maturities not exceeding twenty (20) years. Retirement of debt
principal will be structured to ensure constant annual debt payment. The City will attempt to maintain
base bond ratings of Aa2 (Moody’s Investors Service), AAA (Standard & Poor’s) and AA+ (Fitch,
IBCA), on its general obligation debt (see Debt Policy). Annual financial reviews are conducted by Fitch,
Moody’s and Standard & Poor’s. Post issuance compliance policy was implemented in 2012.

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