Page 48 - City of Mansfield FY22 Operarting Budget

Guiding Policies and Development of the Strategic Plan

The City of Mansfield, Texas, annually prepares and reviews its comprehensive Strategic
Plan. This plan is guided by and directed by long-term fiscal policies that have been in
place over three decades. The benefits of these long-term fiscal policies are evident from
the results of the fiscal performance of the City and the strength of the City’s credit or its
ability to repay its obligations within the community it serves and its creditors.

Guiding Fiscal Policy - Growth pays for Growth

The current residents of the City are only asked to bear the costs of services; the cost of
infrastructure development and the related services needed to support the development is
to be paid for by the population creating demand for these costs. This policy essentially
manages the cost of development and cost of services with the new recipients of these
services. The policy also encourages the timely development of infrastructure and
discourages the City from developing its infrastructure too quickly because funding
becomes too costly for existing stakeholders. Growth pays for Growth.

Other Policies and Practices

Policies and practices are only as effective as the City’s ability and political willingness
to adhere to its policies and practices. The City Councils of the City of Mansfield, Texas,
have supported and encouraged fiscal accountability and responsibility through the
adoption of fiscal policies and the practices of fiscal policies. The instituted financial
policies and practices generally govern the fiscal performance of the City. A few of the
practices are as follows:

Revenues
 One Time Revenues Matched with One Time Expenses
 Manage User Fees to Match the Market Costs
 Cash Reserve Requirements
 Effective Utilization of Potential Tax Base (undeveloped land)

Expenses
 Service Excellence-Quality of Service at the Lowest Costs
 Community Safety
 Managed Growth-planning and Infrastructure Development
 Recruitment of Skilled Workforce-Competitive Salary Program
 Protection of the City’s Credit Ratings

Another key policy in keeping the City’s fiscal condition in good health is the annual
rating review with three rating houses: Fitch, Moody’s, and Standard & Poor’s. The
rating houses refer to this annual review as market surveillance which is a formalized
requirement of the rating agencies. The City’s financial condition is presented annually to
each of the rating houses. This policy allows Management to clearly express its views

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