Page 392 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

D. Balance/Retained Earnings Policy - Expenditure deferrals into the following fiscal year, short-term
loans, or use of one-time revenue sources shall be avoided to balance the budget.

E. Maintenance of Capital Assets - Within the resources available each fiscal year, the Town shall
maintain capital assets and infrastructure at a sufficient level to protect the Town's investment, to
minimize future replacement and maintenance costs, and to continue service levels.

F. Periodic Program Reviews - The Town Manager shall undertake periodic staff and third-party
reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with
other governmental agencies will be evaluated as alternative approaches to service delivery.
Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or
eliminated.

G. Salary - The Town shall strive to maintain competitive salary levels for municipal employees.
A salary survey will be conducted through a sampling of surrounding and comparable
municipal organizations to create a comparison. The Town will strive to maintain salary
levels within three percent (3%) of the median of surveyed benchmark municipalities.

H. Purchasing - The Town shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use competitive bidding in accordance to State law, as well as
intergovernmental partnerships and purchasing cooperatives to attain the best possible price on
goods and services.

I. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt
payment requirements of State law.

VI. FUND BALANCE/RETAINED EARNINGS
A. General Fund Undesignated Fund Balance - The Town shall strive to maintain the General Fund
undesignated fund balance at, or in excess of, 180 days of operation.

B. Retained Earnings of Other Operating Funds - In the Utility Fund, the Town shall strive to maintain
positive retained earnings positions to provide sufficient reserves for emergencies and revenue
shortfalls.

C. Use of Fund Balance – The Council delegates the responsibility to assign funds to the Town
Manager or his/her designee. The Council shall have the authority to assign any amount of funds.
Assignments may occur subsequent to fiscal year-end. The Council will utilize funds in the
following spending order: Restricted, Committed, Assigned, Unassigned
Fund Balance will be targeted to only be used with Council approval and can be only be used for
the following:
• Emergencies,
• non-recurring expenditures such as technology/FF&E (furniture, fixtures and equipment), or
major capital purchases that cannot be accommodated through current year savings.

380