Page 82 - BurlesonFY24AdoptedBudget

9) Encumbrances. Encumbrances outstanding at the end of each fiscal year shall
be reflected as reservations of fund balance. Subsequent year's payments on
previously encumbered funds will be reflected as expenditures in the current
year. For Encumbrances that are brought forward from the previous year,
budgets will be adjusted by the encumbered amount in the current year.

B. BALANCED BUDGET. The operating budget will be balanced with current revenues
and other resources greater than or equal to current expenditures/expenses. Use
of beginning balances and other reserves to balance operations will be discussed
with City Council during the budget process.

C. REPORTING. Monthly financial reports will be prepared to enable the Department
Managers to manage their budgets and to enable the Finance Director to monitor
and control the budget as authorized by the City Manager. Summary financial
reports will be presented to the departments within 10 business days. City Council
will receive a quarterly financial summary of key funds within 30 to 45 days after
the end of each quarterly period (December, March, June and September).

D. ACTIVITY INDICATORS AND STATISTICS. Where appropriate, activity indicators and
statistics will be used as guidelines and reviewed for efficiency and effectiveness.
This information will be considered in the annual budgeting process and reported
to the City Council regularly.

E. OPERATING POSITION. The guidelines that the City should be following to assure
fiscal stability are those outlined in Financial Condition/ Reserves/Stability Ratios
(IX.A. through F.).

V. REVENUE MANAGEMENT.

A. The City will strive for the following optimum characteristics in its revenue system:

1) SIMPLICITY. The City, where possible and without sacrificing accuracy, will
strive to keep the revenue system simple in order to reduce compliance costs
and to make it more understandable to the taxpayer or service recipient. The
City will avoid nuisance taxes or charges as revenue source.

2) CERTAINTY. A knowledge and understanding of revenue sources increases the
reliability of the revenue system. The City will understand its revenue sources
and enact consistent collection policies to provide assurances that the revenue
base will materialize according to budgets and plans.

3) EQUITY. The City shall make every effort to maintain, equity in its revenue
system structure; i.e., the City shall seek to minimize or eliminate all forms of
subsidy between entities, funds, services, utilities, and customers. The City
shall require that there be a balance in the revenue system; i.e., the revenue

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