Page 259 - ArlingtonFY24AdoptedBudget

Appendices

FINANCIAL POLICIES (CONTINUED)
4. A Budget Analysis Report (BAR) will be prepared quarterly and presented to Council or made available on the City’s website.
The BAR will include estimated year-end revenue and expenditures for operating funds, as well as business plan progress.
The 3 Quarter BAR will be presented as part of the proposed annual operating budget.
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In Compliance: Yes Comments: Budget Analysis Reports are completed quarterly. The 1 Quarter BAR was
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presented to Council at the Spring Planning Session in April. The 2 Quarter BAR was provided
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to Council via email in June and is available on the City’s website. The 3 Quarter BAR is included
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in the proposed budget document. The 4 Quarter BAR will be available on the website and
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presented to the Finance and Audit Committee in February.

5. Maintenance and replacement funding will be prioritized each year to ensure that capital facilities and equipment are
sufficiently maintained to avoid service disruptions.

In Compliance: Yes Comments: In FY 2023, funding is available in the Asset Management department budget as well
as the Capital Budget.

6. Operating expenditures resulting from the Capital Improvement Program will be prioritized each year.

In Compliance: Yes Comments: In FY 2023, funding was approved to open new Parks facilities.

7. Charges for services and other revenues will be annually examined by the responsible department and adjusted as deemed
necessary to respond to cost increases or any other changing circumstances. The City shall revise user fees and charges
when necessary, as part of the budget process.

In Compliance: Yes Comments: Departments are responsible for reviewing and adjusting fees in their purview
annually. Fee increases are included as part of the annual budget process.

8. A 5-year financial forecast shall be prepared annually projecting revenues and expenditures for all operating funds. This
forecast shall be used as a planning tool in developing the following year's operating budget.

In Compliance: Yes Comments: The 5-year Financial Forecast was presented to Council at the Spring Council
Planning Session on April 18, 2023.

9. A formal water rate study will be conducted when any one of the following criteria has been met in the water fund:
• The cumulative change in system revenue requirements since the last study is 20% or greater;
• Capital expenditures for any one function (i.e. treatment, transmission, storage, customer service, etc.) change by 20%
of total capital costs;
• The customer base changes materially due to annexation, changes in wholesale or other large customers, or other
similar circumstances such that revisions to existing customer class definitions or cost allocations are required to
preserve cost-of-service based rates;
• new contracts for service to major customers (5 percent or more of total system usage) and new or substantially
modified contracts for wholesale service from other public entities are signed; or
• The City's policies change in such a way that a revised rate structure is necessary to meet stated objectives.

In Compliance: Yes Comments: The Water Utilities Department completed a formal rate study with a consulting firm
in October 2021.

FY 2024 Adopted Budget and Business Plan 250 City of Arlington, Texas