Page 38 - CITY OF AZLE, TEXAS

b. Operating, Non-Recurring Expenditures
i. Capital
ii. Debt (for large capital items that may be financed over a
period of typically less than 10 years)

2. The annual budget shall appropriate sufficient funds for operating, recurring
expenditures necessary to maintain established quality and scope of services.

3. The City will constantly examine the methods for providing public services in
order to reduce operating recurring expenditures and enhance quality and scope
of public services.

4. Personnel service expenditures will reflect the minimum staffing needed to
provide established quality and scope of city services. To attract and retain
employees necessary for providing high-quality services, the City shall maintain
a compensation and benefit package competitive with the public, and when
quantifiable, private service industries.

5. Supplies expenditures shall be sufficient for ensuring the optimal productivity of
City employees.

6. Maintenance expenditures shall be sufficient for addressing the deterioration of
the City’s capital assets to ensure the optimal productivity of the capital assets.
Maintenance should be conducted to ensure a relatively stable level of
maintenance expenditures for every budget year.

7. The City will utilize contracted labor for the provision of city services whenever
private contractors can perform the established level of services at a lower cost
to the City. The City will regularly evaluate its agreements with private
contractors to ensure the established levels of services are performed at the
lowest cost to the City.

8. Capital equipment is defined as equipment that exceeds $5,000 and has a
useful life of at least one year. Existing capital equipment shall be replaced
when needed to ensure the optimal productivity of City employees.

9. Expenditures for additional capital equipment shall be made only to enhance
employee productivity, improve quality of services, or expand scope of services.

FUND BALANCE

1. The annual budget shall be presented to the City Council with each fund
reflecting an adequate fund balance. As the financial situation allows, the goal
for fund balance level in the City’s major operating funds will be at least 120 days
of that fund’s annual operating expenditures.

City of Azle FY 2024-2025 Budget 27