Page 391 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

adequate level of working capital, and recover applicable general/administrative costs. The Solid
Waste function will have rates that fully recover all costs and maintain an adequate balance. The
Cemetery Fund will be structured to operate on lot sales and endowments.

• General and Administrative (G&A) Charges – Where feasible, G&A costs will be charged to all
funds for services of indirect general overhead costs, which may include general
administration, finance, customer billing, facility use, personnel, technology, engineering, legal
counsel, and other costs as deemed appropriate. These charges will be determined through
an indirect cost allocation study following accepted practices and procedures.

E. Intergovernmental Revenues. As a general rule, intergovernmental revenues (grants) will not be
utilized for on-going operating costs. Any potential grant opportunity will be examined to identify
all costs related to matching and continuation of program requirements. Staff will focus on one-
time grants to avoid long-term implications. If it is determined that accepting a grant with on-
going cost conditions is in the interests of the Town, all the operating and maintenance costs must
be included in the financial forecast and their ultimate effect on operations and revenue
requirements be known.

F. Revenue Monitoring. Revenues as they are received will be regularly compared to budgeted
revenues and variances will be investigated. This process will be summarized in the appropriate
budget report.

G. Special Revenue/Educational Funds. Where feasible and practical, General and Administrative
Charges (G&A) for special revenue and educational funds of the Town of Westlake will be
determined on an annual basis and transfers will be made where sufficient revenue exists to cover
the associated expenditures.

V. EXPENDITURE CONTROL
A. Appropriations – The point of budgetary control is at the department level in the General Fund
and at the fund level in all other funds. When budget adjustments among Departments and/or
funds are necessary, they must be approved by the Town Council.

B. Current Funding Basis - The Town shall operate on a current funding basis. Expenditures shall be
budgeted and controlled so as not to exceed current revenues plus the planned use of fund
balance accumulated through prior year savings. (The use of fund balance shall be guided by the
Fund Balance/Retained Earnings Policy Statements.)

C. Avoidance of Operating Deficits - The Town shall take immediate corrective actions if at any time
during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e.,
projected expenditures in excess of projected revenues) is projected at year-end. Corrective
actions can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance
within the Fund.

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