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Fiscal Management Contingency Plan

The contingency plan is a planning document that will be used in the event there is a downturn in
economic conditions that will negatively impact the City of Keller budget. The City is dependent on a
stable, growing economy so that budgeted revenues will be realized. .

The fiscal management plan will assist City management in guiding future planning efforts. The Plan is a
guide only, and is intended to assist in budget balancing strategies. Depending upon management's
response to economic and financial conditions, some parts of the plan may be implemented sooner or
later, in accordance with direction from the City Council. Economic and budget conditions will be
evaluated monthly, and any budget impacts resulting from economic conditions or trends will be
identified.

The contingency plan goals in order are:
1. Protect current service levels, including staffing
2. Minimize cost impacts to Citizens
3. Provide competitive pay and benefits to all employees.

Budgetary Revenue Shortfall Contingency Plan

A. The City will establish a plan to address economic situations that cause revenue to be significantly
less than the adopted budget revenue. The plan is comprised of the following components:

Levels – Serve to classify and communicate the severity of the estimated budgetary revenue
shortfalls and identify the actions to be taken at the given phase.
Actions – Preplanned steps to be taken in order to prudently address and counteract the
estimated budgetary revenue shortfall.

B. The actions listed in Levels I through IV are intended to be short‐term in nature. In the event the
underlying economic situation is expected to last for consecutive years, more permanent actions will
be taken.

C. The City Manager or designee will apprise City Council at the regular City Council meeting
immediately following any action taken through this plan. Information such as underlying economic
condition, economic indicators, estimated budgetary revenue shortfalls, actions taken and expected
duration will be presented to City Council.

D. The City Council may appropriate available fund balance as needed to cover any estimated revenue
shortfall. Appropriation of fund balance must be carefully weighed and long‐term budgetary
impacts must be considered in conjunction with the projected length of the economic downturn. If
the use of fund balance will put a fund under fund balance policy requirements must include plan to
replenish the fund balance back to the minimum.

E. Actions taken through this plan must always consider the impact on revenue generation. Actions
taken should reduce expenses well in excess of resulting revenue losses.

F. The following is a summary of classifications and the corresponding actions to be taken.

1. Revenues

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