Page 398 - City of Westlake FY20 Budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

XV. CAPITAL MAINTENANCE AND REPLACEMENT
The Town recognizes that deferred maintenance and not anticipating capital replacement needs
increases future capital costs. Annually, available funds will be evaluated during the budget process
and a percentage of each operating fund’s budget will be recommended to the Council for transfer.

Upon approval by the Council, the recommended amount will be transferred to the appropriate funds
(General/Utility/Vehicle Maintenance Replacement Fund) for major maintenance and replacement of
street, building roof, flooring, air conditioning, equipment, etc.

XVI. INTERNAL CONTROLS

A. Written Procedures - Whenever possible, written procedures will be established and maintained
by the Finance Director for all functions involving purchasing, cash handling and/or accounting
throughout the Town. These procedures will embrace the general concepts of fiscal responsibility
set for in this policy statement.

B. Department Directors’ Responsibilities - Each department director is responsible for ensuring that
good internal controls are followed throughout his/her department, that all directives or internal
controls are implemented, and that all independent auditor internal control recommendations are
addressed. Departments will develop and periodically update written internal control procedures.

XVII. ASSET MANAGEMENT
A. Investments – The Finance Director shall promptly invest all Town funds with the depository bank
in accordance with the provisions of the current Bank Depository Agreement or in any negotiable
instrument authorized by the Town Council. Further, investments shall be made in accordance
with the Investment Policy approved by the Town Council for the Town of Westlake that meets the
requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local
Government Code. The Finance Director will issue quarterly reports on investment activity to the
Town Council.

B. Cash Management - Town’s cash flow will be managed to maximize the cash available to invest.
Such cash management will entail the centralization of cash collections, where feasibility, including
utility bills, building and related permits and license, fines, fees, and other collection offices as
appropriate. Periodic review of cash flow position will be performed to determine performance of
cash management and conformance to investment policies. The underlying theme will be that idle
cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize
return.

C. Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly accounted
for and prudently insured. The fixed asset inventory will be updated regularly.

D. Capitalization Criteria – For purposes of budgeting and accounting classification, the following
criteria must be capitalized:
• The asset is owned by the Town of Westlake

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