Page 388 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

B. Revenue Estimates for Budgeting: In order to maintain a stable level of services, the Town shall
use a conservative, objective, and analytical approach when preparing revenue estimates. The
process shall include analysis of probable economic changes and their impacts on revenues,
historical collection rates, and trends in revenues. This approach should reduce the likelihood of
actual revenues falling short of budget estimates during the year and should avoid mid-year
service reductions.

C. Balanced Budget: As per State Law, current operating revenues, including Property Tax
Reduction Sales Tax transfers (which can be used for operations), will be sufficient to support
current operating expenditures. Annually recurring revenue will not be less than annually
recurring operating budget expenditures (operating budget minus capital outlay). Debt or bond
financing will not be used to finance current expenditures.

D. Proposed Budget Process: a proposed budget shall be prepared by the Town Manager with the
participation of all of the Town’s department directors.
• The proposed budget shall include four basic segments for review and evaluation: (1)
personnel costs, (2) base budget for operations and maintenance costs, (3) service level
adjustments for increases of existing service levels or additional services, and (4) revenues.
• The proposed budget review process shall include Council participation in the review of each
of the four segments of the proposed budget and a public hearing to allow for citizen
participation in the budget preparation.
• The proposed budget process shall allow sufficient time to provide review, as well as address
policy and fiscal issues, by the Town Council.
• A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to
the Town Council as well as placed on the Town’s website.

E. Budget Adoption: Upon the determination and presentation of the final iteration of the
proposed budget as established by the Council, a public hearing date and time will be set and
publicized. The Council will subsequently consider a resolution which, if adopted, such budget
becomes the Town’s Approved Annual Budget. The adopted budget will be effective for the
fiscal year beginning October 1. The approved budget will be placed on the Town’s web site.

F. Budget Award: Each year the Council approved operating budget will be submitted annually to
the Government Finance Officers Association (GFOA) for evaluation and consideration for the
Award for Distinguished Budget Presentation.

G. Budget Amendments: Department Directors are responsible for monitoring their respective
department budgets. The Finance Department will monitor all financial operations. The budget
team will decide whether to proceed with a budget amendment and, if so, will then present the
request to the Town Council. If the Council decides a budget amendment is necessary, the
amendment is adopted in resolution format and the necessary budgetary changes are then
made.

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