Page 320 - CityofHasletFY25AnnualBudget

A fixed asset of the City shall be defined as a purchased or otherwise acquired piece
of equipment, vehicle, furniture, fixture, capital improvement, addition to exiting
capital investments, land or buildings, with the cost or value of such acquisition
being $5,000 or more with an expected useful life greater than one year.

The City’s fixed assets shall be reasonably safeguarded, properly accounted for and
sufficiently insured. Responsibly for the safeguarding of the City’s fixed assets lies
with the Department Director in whose department the fixed asset is assigned.

VII. Capital Budget and Program

Preparation. The City’s capital budget will include all capital project funds and all
capital resources. The Budget will be prepared annually. The capital budget will be
prepared as directed by the City Administrator with the involvement of all required
City departments.

Control. All capital project expenditures must be appropriated in the capital budget.
The Finance Department must certify the availability of resources before a capital
project contract is presented to the Council for approval.

VIII. Financial Conditions, Reserves, and Stability Ratios

Operational Coverage. The City will maintain a balanced budget whereby operating
revenues will be greater than or equal to operating expenditures.

Fund Balance. It is essential for the City to maintain adequate levels of fund balance
to mitigate financial risk that can occur from unforeseen revenue shortfalls,
unanticipated expenditures, or any other adverse circumstances.

Definitions:

Fund Balance. The difference between a governmental fund’s assets and liabilities,
divided into 5 categories: 1) Nonspendable, 2) Restricted, 3) Committed, 4)
Assigned, 5) Unassigned.

 Nonspendable. That portion of fund balance that is legally or contractually
required to be maintained intact. In addition, nonspendable also means that
portion is not expected to converted to cash, i.e., inventories and prepaid.
 Restricted. That portion of the fund balance that is constrained for a specific
purposed by external resource providers through constitutional provisions or
by enabling legislation.
 Committed. That portion of the fund balance that is constrained by a formal
action of the government’s highest level of decision making authority, the City
City of Haslet Financial Policy

Haslet Adopted Budget FY 2024-2025 318