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E. Maintenance of Capital Assets - Within the resources available each fiscal year, the Town shall
maintain capital assets and infrastructure at a sufficient level to protect the Town's investment,
to minimize future replacement and maintenance costs, and to continue service levels.

F. Periodic Program Reviews - The Town Manager shall undertake periodic staff and third-party
reviews of Town programs for both efficiency and effectiveness. Privatization and contracting
with other governmental agencies will be evaluated as alternative approaches to service
delivery. Programs which are determined to be inefficient and/or ineffective shall be reduced in
scope or eliminated.

G. Salary - The Town shall strive to maintain competitive salary levels for municipal
employees. A salary survey will be conducted through a sampling of surrounding and
comparable municipal organizations to create a comparison. The Town will strive to
maintain salary levels within three percent (3%) of the median of surveyed benchmark
municipalities.

H. Purchasing - The Town shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use competitive bidding in accordance to State law, as well as
intergovernmental partnerships and purchasing cooperatives to attain the best possible price
on goods and services.

I. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the
prompt payment requirements of State law.

VI. FUND BALANCE/RETAINED EARNINGS
A. General Fund Undesignated Fund Balance - The Town shall strive to maintain the General Fund
undesignated minimum fund balance at, or in excess of, 180 days of operation.

B. Retained Earnings of Other Operating Funds - In the Utility Fund, the Town shall strive to
maintain positive retained earnings positions to provide sufficient reserves for emergencies and
revenue shortfalls.

C. Use of Fund Balance – The Council delegates the responsibility to assign funds to the Town
Manager or his/her designee. The Council shall have the authority to assign any amount of
funds. Assignments may occur subsequent to fiscal year-end. The Council will utilize funds in the
following spending order: Restricted, Committed, Assigned, Unassigned
Fund Balance will be targeted to only be used with Council approval and can be only be used for
the following:
• Emergencies, such as a natural disaster, pandemic, epidemic, or quarantine.
• non-recurring expenditures such as technology/FF&E (furniture, fixtures and equipment), or
major capital purchases that cannot be accommodated through current year savings.
• Should such use reduce the balance below the appropriate level set as the objective for that
fund, recommendations will be made on how to restore it.
• The Council shall approve all commitments by formal action. The action to commit funds
must occur prior to fiscal year-end, to report such commitments in the balance sheet of the
respective period, even though the amount may be determined subsequent to fiscal year-
end.
• A commitment can only be modified or removed by the same formal action.

D. General Fund Balance Specifically- Amounts of the General Fund’s Fund Balance above the 180
day minimum in the General Fund may, with Council approval, be used for the following in
descending order of priority:

• Emergencies, and their related response and/or necessary repairs to major equipment failure
or damage, such as a natural disaster, pandemic, epidemic, or quarantine.
• Specific capital improvement projects or be transferred to the Capital Projects Fund.

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