Page 40 - City of Mansfield FY22 Operarting Budget

The debt service levy and related debt service expenditures shall be accounted for in the Debt Service
Fund. The operation and maintenance levy shall be accounted for in the General Fund.
The City will maintain a policy of levying the lowest tax rate on the broadest tax base. Legally allowable
exemptions may be provided to homeowners, senior citizens, and disabled veterans.

The City will establish user charges and fees at a level that attempts to recover the full cost of providing
the service. User fees, particularly utility rates, should identify the relative costs of service for different
classes of customers. When possible, utility rates should be designed to reduce peak (hour and day)
demands on the utility systems.

The City will make every reasonable attempt to ensure accurate measurements of variables impacting
taxes and fees (such as verification of business sales tax payments, verification of appraisal district
property values, and accuracy of water meters.)

The City will attempt to maximize the application of its financial resources by obtaining supplementary
funding through agreements with other public and private agencies for the provision of public services or
the construction of capital improvements.

The City will consider other market rates and charges levied by other public and private organizations for
similar services in establishing tax rates, fees, and charges.

When developing the annual budget, the Financial Services Department shall project revenues from every
source based on actual collections from the preceding year and estimated collections of the current fiscal
year, while taking into account known circumstances which will impact revenues for the new fiscal year.
The revenue projections for each fund should be made conservatively.

OPERATING EXPENDITURE POLICIES

Operating expenditures shall be accounted, reported, and budgeted for in the following major categories:
operating, recurring expenditures including personnel services, supplies, maintenance, contractual
services, and capital replacement/lease. The annual budget shall appropriate sufficient funds for operating
and recurring expenditures necessary to maintain established quality and scope of City services.

The City will constantly examine the methods for providing public services in order to reduce operating,
recurring expenditures and/or enhance quality and scope of public services with no increase in cost.
Personnel service expenditures will reflect the minimum staffing needed to provide established quality
and scope of City services. To attract and retain employees necessary for providing high-quality service,
the City shall maintain a compensation and benefit package competitive with the public and, when
quantifiable, private service industries. Supply expenditures shall be sufficient for ensuring the optimal
productivity of City employees.

Maintenance expenditures shall be sufficient for addressing the deterioration of the City’s capital assets to
ensure the optimal productivity of the capital assets. Maintenance should be conducted to ensure a
relatively stable level of maintenance expenditures for every budget year.

The City will utilize contract labor for the provision of City services whenever private contractors can
perform the established level of service at less expense. The City will regularly evaluate its agreements
with private contractors to ensure the established levels of service are performed at the least expense to
the City.

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