Page 90 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Significant Accounting Policies

The Town Council has established and regularly updates a comprehensive set of financial policies for the
Town of Westlake. The Town Manager and Town Council are devoted to safeguarding and improving
the financial condition of the Town of Westlake. A full listing of policies can be found in the Municipal
Policy Section of this document.

KEY FEATURES OF THE FISCAL & BUDGETARY POLICIES INCLUDE:

• Operating Budget
• Revenues Management
• Expenditure Control
• Fund Balance
• Debt Management
• Intergovernmental Relationships
• Grants
• Economic Development
• Fiscal Monitoring
• Financial Consultants
• Accounting, Auditing, and Financial Reporting
• Capital Budget and Program
• Capital Maintenance and Replacement
• Internal Controls
• Asset Management

FUND BALANCE POLICIES
The Town Manager and Town Council are devoted to safeguarding and improving the financial condition
of the Town of Westlake
• 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.
• 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.
• 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 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.
• Should such use reduce the balance below the appropriate level set as the objective for that fund,
recommendations will be made on how to restore it.
• The Council shall approve all commitments by formal action. The action to commit funds must occur
prior to fiscal year-end, to report such commitments in the balance sheet of the respective period,
even though the amount may be determined subsequent to fiscal year-end.
• A commitment can only be modified or removed by the same formal action.

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