Page 391 - City of Westlake FY20 Budget
P. 391

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.






                                                             379
   386   387   388   389   390   391   392   393   394   395   396