Page 93 - City of Westlake FY20 Budget

Section 2 Financial Analysis
Significant Accounting Policies

3. Budget Crisis Procedures
(will need to be reviewed and discussed)
This policy would be intended to provide the Town of Westlake with options when responding
to unexpected fiscal issues that can and do arise. Should budget problems materialize, these
procedures will support comprehensive risk analysis and contingency plans.

4. Long Term Forecasting
(will need to be reviewed and discussed)
The annual operating budget focuses on a single 12-month period. However, spending and
revenue decisions made today have affects that extend beyond a 12-month period. The
purpose of this policy would be to
o Ensure on-going financial sustainability beyond a single fiscal year
o Achieve the Town’s mission and vision
o Systematically link the annual budget to a multi-year master financial plan.

5. Reserve Policy in Other Funds
(will need to be reviewed and discussed)
While the General Fund Reserve is the most important for the Town of Westlake, reserves in
other funds are just as important. For that reason, the funds listed in this policy would have
reserves that are restricted or committed for specific purposes.

6. General Fund Budget Reserves
(already incorporated into the Fiscal and Budgetary Policies)
The General Fund is the primary fund used by the Town of Westlake to account for revenues
and expenditures. Accordingly, the General
Fund Reserve Policy is intended to provide the Expenditures Ending Percent of Fund
Balance to
Fund
Without
Town with options when responding to Fiscal Transfers Balance Expenditures
Year
unexpected issues and to afford a buffer FY 12/13 $4,373,329 $5,812,583 133%
against shocks and other forms of risk. FY 13/14 $4,891,099 $6,788,964 139%
FY 14/15 $5,400,728 $7,240,729 134%
General Fund Budget Reserves requires FY 15/16 $6,368,070 $8,553,121 134%
minimum reserves of total General Fund FY 16/17 $7,166,777 $10,242,277 143%
Expenditures with amounts committed to: FY 17/18 $7,457,337 $9,761,849 131%
o Property & Casualty Insurance
o Severance pay for Sick Leave and FY 18/19 $8,781,599 $13,255,427 151%
Annual Leave
o General Liability Insurance Deductibles
o Catastrophic events (unforeseen emergencies - natural disaster)

One of two things must happen in the future if we cannot spend equal to or less than the
revenues received:
o make future reductions
o approve new taxes.

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