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

Financial Reporting and Policies

Financial and Operational Policies
The City of Mansfield, Texas, has developed financial and operational policies that guided the development of the budget
for FY 2025-2026. The budget has been developed using an analysis of historical data, current data, and forecasted
data. The staff identified areas of growth and future needs in each department. The management team put in place
policies and procedures that determine the overall budget, including expected population growth, expansion of services,
debt service requirements, capital improvements, operational maintenance requirements, and staffing level requirements.
Each department is evaluated as to current needs and the projected needs in the next budget year and the following nine
years. Availability of funds is considered to determine what areas may need additional funding. A complete prior year
analysis and future analysis are utilized to determine what areas may be increased, decreased, or remain constant for the
upcoming year. Individual departments are required to submit departmental budgets for the upcoming fiscal year. The
Budget and Accounting teams review individual budgets and create a priority list for each department based on
department and administration considerations. The budget for each department is reviewed by the City Manager's office
to ensure each department is properly funded. The budget’s operational and financial policies are reviewed throughout
the year.

Financial Reporting Policy
At the end of the fiscal year, the Accounting Department prepares an Annual Comprehensive Financial Report (ACFR) in
accordance with generally accepted accounting and financial reporting principles established by the Governmental
Accounting Standards Board (GASB) and the SEC. The ACFR shall also satisfy all criteria of the Government Finance
Officers Association’s Certificate of Achievement for Excellence in Financial Reporting. Monthly, semiannual, and quarterly
reports on the City’s finances are reported to City Council.

The ACFR shall show the status of the City’s finances on the basis of General Accepted Accounting Principles (GAAP). The
ACFR shall show fund revenues and expenditures on both a GAAP basis and budget basis for comparison purposes. In all
but two cases, this reporting conforms to the way the City prepares its budget: compensated absences (accrued but
unused sick leave) are not reflected in the budget but are accounted for in the ACFR’s long-term debt position; and
depreciation is not shown in the budget’s proprietary funds, although the full purchase price of equipment and capital
improvements is reflected as uses of working capital.

Included as part of the Annual Financial Report are the results of the annual audit prepared by independent Certified
Public Accountants designated by City Council. The Finance Department shall issue a monthly report to the Council
reflecting the City’s financial condition for the month. The monthly report shall present the financial condition of the City
in a user friendly and understandable format consistent with the budget.

Revenue Policies
To protect the City’s financial integrity, the City will maintain a diversified and stable revenue system to shelter it from
fluctuations in any one revenue source.
For every annual budget, the City shall levy two property tax rates: operation/maintenance and debt service. The debt
service levy shall be sufficient for meeting all current principal and interest payments.

The debt service levy and related debt service expenditures shall be accounted for in the Debt Service Fund. The
operation and maintenance levy shall be accounted for in the General Fund.

The City will maintain a policy of levying the lowest tax rate on the broadest tax base. Legally allowable exemptions may be
provided to homeowners, senior citizens, and disabled veterans.

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