Page 81 - CityofBurlesonFY25AdoptedBudget

F. REPORTING. Periodic financial reports will be prepared to enable Department
Managers to manage their capital budgets and to enable the Finance Department
to monitor and control the capital budget as authorized by the City Manager.
Summary capital projects status reports should be presented to the City Council
quarterly.

IX. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS

A. OPERATIONAL COVERAGE. (NO OPERATING DEFICITS). The City will maintain an
operational coverage factor of 1.00, such that current operating revenues (plus
approved fund balance appropriations) will equal or exceed current operating
expenditures.

Deferrals, short-term loans, or one-time sources will be avoided as budget
balancing techniques. Reserves will be used only for emergencies or non-
recurring expenditures, except when balances can be reduced because their
levels exceed guideline minimums as stated in Paragraph B, following.

B. OPERATING RESERVES/FUND BALANCES

a. Governmental funds of the City of Burleson shall be defined as follows:

1) General Fund The general fund should be used to account for and
report all financial resources not accounted for and reported in
another fund.

2) Special Revenue Funds Special revenue funds are used to account for
and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other
than debt service or capital projects. The restricted or committed
proceeds of specific revenue sources should be expected to continue
to comprise a substantial portion of the inflows reported in the fund.
Other resources (investment earnings and transfers from other funds,
for example) also may be reported in the fund if those resources are
restricted, omitted, or assigned to the specified purpose of the fund.
Governments should discontinue reporting a special revenue fund,
and instead report the fund's remaining resources in the general
fund, if the government no longer expects that a substantial portion
of the inflows will derive from restricted or committed revenue
sources.

3) Capital Projects Funds Capital projects funds are used to account for
and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition
or construction of capital facilities and other capital assets. Capital

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