Page 65 - Burleson FY22 City Budget

business within the City of Burleson, Texas so long as that bank maintains a business location within a five-mile radius
of Burleson City Hall. This authorization encompasses all of the depository uses and requirements of the City.

VIII. CAPITAL BUDGET AND PROGRAM

A. PREPARATION. The City will endeavor to develop a capital budget to include all capital projects being considered and
all resources for capital funding. The budget will be prepared on a fiscal year ending calendar and reported annually..
The capital budget will be prepared by the Finance Director with the involvement of all department staff as needed.

B. CONTROL. All capital project expenditures must be appropriated in the capital budget at a project level. The Finance
Department must certify the availability of such appropriations or the availability of resources needed to be appropriated
before a capital project contract is presented to the City Council for approval. Any remaining funds of a completed project
not allocated by City Council will be closed into an unallocated account in the same fund. Similar projects are to be
grouped together in a fund based on type of project and source of funding, using the similar Capital Projects Fund
classifications for reporting purposes in the Annual Financial Report.

C. PROGRAM PLANNING. The capital budget will include capital improvements program plans for future years. The
planning time frame should normally be at least five years. The replacement and maintenance for capital items should
also be projected for the next 5 years. Future maintenance and operational costs will be considered at the initiation of a
project so the costs can be included in the relevant operating budget.

D. FINANCING PROGRAMS. Where applicable, assessments, impact fees, pro-rata charges, or other fees should be used
to fund capital projects having a primary benefit to specific, identifiable property owners.

E. INFRASTRUCTURE MAINTENANCE. The City recognizes that deferring maintenance increases future capital costs.
Therefore, a portion of the appropriate fund's budget will be set aside each year to maintain the quality of the City's
infrastructure. The inclusion of infrastructure maintenance and replacement costs in the current operating budget will
place the burden of the costs and repairs on the current users of the systems.

F. REPORTING. Periodic financial reports will be prepared to enable Department Managers to manage their capital budgets
and to enable the Finance Department to monitor and control the capital budget as authorized by the City Manager.
Summary capital projects status reports should be presented to the City Council quarterly.

IX. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS

A. OPERATIONAL COVERAGE. (NO OPERATING DEFICITS). The City will maintain an operational coverage factor of
1.00, such that current operating revenues (plus approved fund balance appropriations) will equal or exceed current
operating expenditures.
Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques. Reserves will be
used only for emergencies or non-recurring expenditures, except when balances can be reduced because their levels
exceed guideline minimums as stated in Paragraph B, following.

B. OPERATING RESERVES/FUND BALANCES

a. Governmental funds of the City of Burleson shall be defined as follows:

1) General Fund The general fund should be used to account for and report all financial resources not
accounted for and reported in another fund.
2) Special Revenue Funds Special revenue funds are used to account for and report the proceeds of
specific revenue sources that are restricted or committed to expenditure for specified purposes other
than debt service or capital projects. The restricted or committed proceeds of specific revenue sources

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