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City of Mansfield Annual Budget and Service Program Fiscal Year 2025-2026 Table of Contents

Budget Policies

Balanced Budget Policy
The City of Mansfield has adopted a balanced budget for all funds. Current appropriations in all funds are limited to the
sum available, unencumbered cash balances and revenues estimated to be received in the current budget period.
Expenditure and subsidy appropriations for mandated and priority programs are to be made against current revenue
sources and not dependent upon uncertain reserves or fluctuating prior period fund balances. To the extent possible,
current operations will be funded by current revenues. The use of unencumbered prior period balances in all funds shall
be scrutinized and carefully limited and subject to review by the City Manager and City Council.

Budget Control
As set forth in the City Charter, the City Council adopts an annual budget prepared in accordance with Generally Accepted
Accounting Principles. The City Manager may transfer part or all of any unencumbered appropriation balance among
programs within a department. The City Council may require their approval of these transfers if the transfers exceed the
adopted budget for each fund.

All unused appropriations, except appropriations for capital expenditures, lapse at the close of the fiscal year to the extent
they have not been expended or encumbered. An appropriation for a capital expenditure shall continue in force until the
purpose for which it was made has been accomplished or abandoned. The purpose of any such appropriation shall be
deemed abandoned if three years pass without any disbursement from or encumbrance of the appropriation.

Amendments to the Budget
The City of Mansfield operating budget is adopted at the division level. Any transfers that exceed budgeted expenditures
may require City Council approval. Any change orders to budgeted capital improvement projects must be approved by
City Council.

Use of Contingency Reserve
When additional funding is required to offset unexpected revenue shortfalls, unexpected expenditure increases or events
that threaten public health or safety, contingency operating funds may be authorized by the City Manager and/or City
Council so that budgeted service levels can be maintained.

Fund Organization
The accounts of the City are organized on the basis of funds, each of which is considered to be a separate accounting
entity. The operations of each fund are accounted for with a separate set of self-balancing accounts. Governmental
resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent
and how spending activities are controlled.

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