Page 92 - CityofBurlesonFY26Budget

shall include all court costs, as well as an amount for compensation of the
attorney as permitted by State law and in accordance with the attorney's
contract with the City. Annual performance criteria will be developed for the
attorney.

4) INTEREST INCOME. Interest earned from investment of available monies,
whether pooled or not, will be distributed to the funds in accordance with the
operating and capital budgets which, wherever possible, will be in accordance
with the cash balance of the fund from which monies were provided to be
invested.

5) USER-BASED FEES AND SERVICE CHARGES. For services associated with a user
fee or charge, the direct and indirect costs of that service will be offset by a
fee where possible. There will be an annual review of fees and charges to
ensure that fees provide adequate coverage of the costs of services. User
charges may be classified as "Full Cost Recovery", "Partial Cost Recovery," and
"Minimal Cost Recovery," based upon City Council policy.

6) UTILITY RATES. The City will review and adopt utility rates annually that will
generate revenues required to fully cover operating expenditures, meet the
legal restrictions of all applicable bond covenants, and provide for an adequate
level of working capital needs. This policy does not preclude drawing down
cash balances to finance current operations. However, it is best that any extra
cash balance be used instead to finance capital projects. Components of Utility
Rates will include transfers to the General Fund as follows:

a. General and Administrative Charge. An administrative fee will be charged
to the Utility Fund for services of general overhead, such as administration,
finance, personnel, data processing, and legal counsel. This fee will be
documented through a cost allocation procedure.

b. Franchise payment. A rate consistent with those charged to private utilities
will be charged to the Utility Fund. This rate may be either raised or
lowered so as to be consistent with those of the private utilities.

c. Payment in lieu of Property Tax (PILOT). A fee will be charged to the Utility
Fund to equate to property taxes lost due to municipal ownership. Total
Assets from the most recent audited financials will be used as a basis,
barring the absence of known market value. The tax rate from the same
fiscal year as the most recent audited financials will be applied to this base
to determine the PILOT charge.

7) REVENUE MONITORING. Revenues received will be compared to budgeted
revenues throughout the fiscal year and significant variances will be
investigated.

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