Page 69 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Budget 101 Overview

The following procedures, which are guided by generally accepted budgeting practices, has been
established:
• The annual operating budget presents appropriations of expenditures and estimates of revenues
for all local government funds. These revenues include sales and use taxes, ad valorem property
tax, citation revenue, franchise taxes, mixed beverage taxes, license and permit fees,
development fees, sales of printed material, interest income, water and sewer utility revenue,
duct bank leases, and miscellaneous revenues.
• The annual operating budget illustrates expenditures, anticipated revenues, and the estimated
impact on reserves.
• Budgets for each municipal department are broken down into specific cost components,
including payroll and related categories, supplies, services, insurance, repair & maintenance,
rent & utilities, economic development incentives, debt service and capital outlay.
• Revenue projections are prepared for each revenue source based on an analysis of historical
revenue trends and current fiscal conditions.
• The budget process includes a multi-year projection of all required capital improvements.
• Goals and objectives have been developed for each department and are incorporated into the
evaluation of employees and performance of the organization.
• A budget message summarizing local financial conditions and principal budget issues is
presented to the governing council along with the annual budget.

In May, the Finance Department prepares such items as budget forms and instructions for estimating
revenues and expenditures. Department heads submit proposed baseline expenditures for current
service levels and any additional one-time or on-going request they may have for their department. A
round-table meeting is subsequently held with the Town Manager, the finance staff and each
department head for review.

After all funding levels are established and agreed upon; the proposed budget is presented by the Town
Manager to the Town Council. A public hearing on the budget is conducted in accordance with state
and local law. This meeting is held after the Council has reviewed the budget during a workshop. The
Town Council approves a level of expenditure (or appropriation) for each fund to go into effect on
October 1st, prior to the expenditure of any Town funds for that budget year.

EFFECT OF PLANNING PROCESSES ON THE BUDGET

The budget process will be coordinated to identify major policy issues for Town Council by integrating it
into the Council’s overall strategic planning process for the Town. Each department shall have a multi-
year business plan that integrates with the Town’s overall strategic plan.The Town of Westlake utilizes
several planning processes that affect the development of the operating budget. Effective planning
processes assist the Town in assessing the financial implications of current and proposed policies,
programs, and assumptions. An effective plan illustrates the likely outcomes of particular courses of
actions.

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