Page 42 - City of Mansfield FY22 Operarting Budget

UTILITY CAPITAL EXPENDITURES

The City will design utility rates sufficient for meeting the annual coverage requirement that will
accumulate resources to replace or rehabilitate aging infrastructure that no longer can be serviced by
regular maintenance. Attempts should be made to fund the reserve at a level approximate to the annual
average coverage requirement as reported in the City’s Annual Comprehensive Financial Report.

LONG TERM FINANCIAL PLAN POLICY

The City will adopt every annual budget in context of a long-term financial plan for the General Fund and
Water & Sewer Fund. Financial plans for other funds may be developed as needed. The General Fund
and Water & Sewer Fund long term plans will establish assumptions for revenues, expenditures, and
changes to fund balance over a ten-year horizon. The assumptions will be evaluated each year as part of
the budget development process.

ECONOMIC DEVELOPMENT POLICY

The City will assess and collect ½ percent on each taxable sales transaction in the City and utilize the
revenue to encourage commercial and industrial development within the City. Commercial and industrial
development provides additional tax revenues, local employment, and shifts a portion of the tax base from
the homeowner to the industrial/commercial entity. The MEDC board has set a goal to split the tax
burden equally between the homeowner and industrial/commercial development.

INFRASTRUCTURE DEVELOPMENT POLICY

The development of capital improvements, including street and utility construction, will provide the
necessary infrastructure for residential and commercial development. The City has instituted an
aggressive ten-year capital improvement program to develop the City's infrastructure. This program will
be funded with the growth in tax base as projected. The improvements are being timed to coincide with
annual growth in the City.

SERVICE DEVELOPMENT POLICY

The City of Mansfield has increased the city staffing level by 18.5 Full Time Equivalent positions in FY
2021-2022.

PLANNING AND DEVELOPMENT POLICY

The City has and will increase its technical assistance to residential and commercial developers in an
effort to develop systematic growth and development. Residential and commercial zoning has been
developed to fit the City's master plan.

BUDGET PREPARATION POLICY

The budget development is based on community and individual department needs as identified by the
citizens' survey, City Council, and individual division projections. The budget is based on the projected
growth of both revenue and expense factors City-wide over a ten-year period. Projected commercial and
industrial development are also factored into the overall budget plan. Council and management have
adopted a modified Strategic Plan to outline the operational and infrastructure demands from the effects
of the economy. This plan will be reviewed and revised regularly.

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