Page 50 - CityofMansfieldFY24Budget

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 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 ratings, 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 basic services; the
cost of infrastructure development and the related services needed to support the
development is to be paid for by the population creating the 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
over the years have supported and encouraged fiscal accountability and responsibility
through the adoption of fiscal policies and the practices of those fiscal policies, as
evidenced by health fund balances in all major funds. 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 a 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 to

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