Page 71 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Budget 101 Overview

THE BUDGET PROCESS
A proposed budget shall be prepared by the Town Manager with the participation of all the Town’s
department directors.

The proposed budget shall include four basic segments for review and evaluation:
• Personnel costs
• Base budget for operations and maintenance costs
• Service level adjustments for increases of existing service levels or additional services
• Revenues

The proposed budget review process shall include Council participation in the review of each of the four
segments of the proposed budget and a public hearing to allow for citizen participation in the budget
preparation. The proposed budget process shall allow sufficient time to provide review, as well as address
policy and fiscal issues, by the Town Council. A copy of the proposed budget shall be filed with the Town
Secretary when it is submitted to the Town Council as well as placed on the Town’s website.

The Town Manager submits the budget to the Town Council. The Town’s fiscal year begins each year on
st
th
October 1 and ends on September 30 of the following calendar year.

Prior to the beginning of the fiscal year, the Town Manager must submit a proposed budget, which
includes:
• A budget message
• A consolidation statement of anticipated revenues and proposed expenditures for all funds
• General fund resources in detail
• Special fund resources in detail
• A summary of proposed expenditures by department and activity
• Detailed estimates of expenditures shown separately to support the proposed expenditure
• A description of all bond issues outstanding
• A schedule of the principal and interest payments of each bond issue

The proposed revenues and expenditures must be compared to prior year revenues and expenditures.
The budget preparation process begins early in the calendar year with the establishment of overall town
goals, objectives, and analysis of current year operations compared to expenditures. Budget policies
and procedures are reviewed at the same time to reduce errors and omissions.

BALANCED BUDGET
As per State Law, current operating revenues, including Property Tax Reduction Sales Tax (which can be
used for operations), will be sufficient to support current operating expenditures. Annually recurring
revenue will not be less than annually recurring operating budget expenditures (operating budget minus
capital outlay). Debt or bond financing will not be used to finance current expenditures.
• 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.)

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