Page 71 - CityofEulessFY26AdoptedBudgetOrdinance2432

Revenue Monitoring — Revenues actually received will be regularly compared to budgeted revenues
R.
and variances will be investigated. This process will be summarized in the appropriate budget report.
VII. EXPENDITURE CONTROL

A. Appropriations — The level of budgetary control is the department level in the General Fund and Water
and Sewer Fund, and the fund level in all other funds. When budget adjustments between funds are
necessary, these must be approved by the City Council. Budget appropriation amendments at lower
levels of control shall be made in accordance with the applicable administrative procedures through
the finance office.
B. Central Control — Significant salary and capital budgetary savings in any department will be centrally
controlled and may not be spent by the department without specific City Manager authorization.

C. Purchasing — All purchases shall be in accordance with the City' s purchasing policies. Purchases and
any contracts exceeding the limit established by state law will conform to a formal bidding process as
outlined. Recommendations on purchases and contracts that are subject to the bidding process will
be made to the City Council for their approval.
D. Prompt Payment — All invoices will be paid within 30 days of receipt in accordance with the prompt
Procedures. will be used to take advantage of all purchase
payment requirements of State law.
discounts where considered cost effective. However, payments will also be reasonably delayed in
order to maximize the City's investable cash, where such delay does not violate the agreed upon
payment terms.
E. Equipment Financing — Equipment may be financed when the unit purchase price is $ 20,000 or more
and the useful life is at least four years with City Council approval.

VIII. ASSET MANAGEMENT

A. Investments — The City's investment practices will be conducted in accordance with the City Council
approved Investment Policies. Utilized objectives: safety, liquidity, and yield.
B. Cash Management — The City' s cash flow will be managed to maximize the cash available to invest.
C. Investment Performance — At the end of each fiscal year a report on investment performance will be
provided by the Finance Director to the City Manager for presentation to the City Council.

D. Fixed Assets and inventory - These assets will be reasonably safeguarded, property accounted for,
and prudently insured.
IX. FINANCIAL CONDITION AND RESERVES

A. No Operating Deficits — Current expenditures will be paid with current revenues. Deferrals, short-term
Reserves will be used
loans, or one- time sources will be avoided as budget balancing techniques.
only for emergencies or nonrecurring expenditures, except when balances can be reduced because
their levels exceed guideline minimums.
B. Operating Reserves —The General Fund resources balance should be at least 30 to 60 days in working
capital and never fall below 8. 3% of the General Fund expenditures budget. This percentage is the
equivalent of 30 days' expenditures. The Enterprise Fund working capital should be at feast 45 to 75
days in working capital and never fall below 12% of the Water and Wastewater operating expense
budget. An additional cash test will be required for the Water and Wastewater Fund to ensure the
City' s ability to operate, exclusive of accounts receivable. If reserves fall below the minimum level, the
Director of Finance and City Manager will propose a plan for the replacement of the reserves. The
City Council will review and approve the plan. The City will try to replace the reserves within the
minimum amount of time that is practical.
C. Risk Management Program — The City will aggressively pursue every opportunity to provide for the
public's and City employees' safety and to manage its risks. Ali reasonable options will be investigated
to finance losses. Such options may include risk transfer, insurance, and risk retention. Where risk is
retained, reserves will be established based on actuarial determinations. Such reserves will not be
used for any purpose other than for financing losses.

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Ordinance No. 2432, Page 71 of 474