HomeMy WebLinkAbout03-23-09 TC Agenda Wkshp Packet
TOWN OF WESTLAKE, TEXAS
Mission Statement
On behalf of the citizens, the mission of the Town of Westlake is to be a one-of-a-kind community
that blends our rural atmosphere with our rich culture and urban location.
Westlake, Texas – A Premier Knowledge Based Community
TOWN COUNCIL WORKSHOP
A G E N D A
MARCH 23, 2009
WESTLAKE TOWN HALL
3 VILLAGE CIRCLE
MUNICIPAL COURT ROOM, SUITE 207
4:30 p.m.
1. CALL TO ORDER.
2. DISCUSS AND REVIEW OF CONSENT AGENDA ITEMS FROM MARCH 23, 2009,
COUNCIL REGULAR MEETING AGENDA.
3. DISCUSSION OF POSSIBLE PUBLIC INFORMATION/COMMUNICATION
EFFORTS FOR THE MAY 9, 2009, LOCAL OPTION ALCOHOL ELECTION.
4. DISCUSSION AND CONSIDERATION OF TOWN/WESTLAKE ACADEMY
FINANCIAL POLICIES.
5. HEAR AND DISCUSS THE POTENTIAL REGULATED USE OF WIRELESS
COMMUNICATION DEVICES.
Town of Westlake Town Council Page 2 of 2
Workshop Agenda
March 23, 2009
6. FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or
Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council
meeting. The Council member making the request will contact the Town Manager with the
requested item and the Town Manager will list it on the agenda. At the meeting, the
requesting Council member will explain the item, the need for Council discussion of the
item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated
staff time necessary to prepare for Council discussion. If the requesting Council member
receives a second, the Town Manager will place the item on the Council agenda calendar
allowing for adequate time for staff preparation on the agenda item.
- None
7. EXECUTIVE SESSION.
The Council will conduct a closed session under Texas Government Code for the following:
A. Pursuant to Section 551.074(a)(1) of the Texas Government Code to deliberate the
evaluation and duties of public officers: The Town Secretary
8. RECONVENE WORKSHOP.
9. ADJOURNMENT.
ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS
IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076
AND SECTION 551.87 OF THE TEXAS GOVERNMENT CODE.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, by Friday,
March 20, 2009, by 4:30 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code.
_____________________________________
Kim Sutter, TRMC, Town Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town
Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you.
Town of
Westlake
Item # 2 –
Review of Consent
Agenda Items
Town of Westlake
Memo
To: Honorable Mayor and Members of the Town Council
From: Tom Brymer, Town Manager
Kim Sutter, Town Secretary
Subject: Workshop Meeting of March 23, 2009
Date: March 16, 2009
ITEM
Discussion of Possible Public Information/Communication Efforts for the May 9, 2009,
Local Option Alcohol Election.
VISION POINT AND KEY RESULT AREAS
This item supports the following Vision Point and Key Result Areas:
; Hospitality Finds its Home in Westlake
o Citizen engagement and communication
BACKGROUND
On January 20, 2009, the Town Secretary received petitions that were reviewed and
found to have the necessary number of valid signatures from registered Westlake voters
petitioning for a local option election for the voters to consider two propositions: 1.) the
legal sale of mixed beverages in restaurants by food and beverage certificate holders only
and 2.) the legal sale of all alcohol beverages for off-premise consumption only. At its
March 9, 2009, Regular Meeting the Town Council, as required by law, approved an
ordinance calling this election for May 9, 2009. At this meeting, the Council indicated it
wished to discuss public information efforts to inform voters of the facts related to this
election.
FUNDING:
N/A at this time.
RECOMMENDATION:
Council discusses this topic and, if the Council determines that it wishes to engage in a
public information effort for this local option election, provide guidance and direction to
staff on the means by which it wishes to do so.
ATTACHMENTS:
Information will be provided at the workshop for Council discussion and consideration of
this agenda item.
Town of Westlake
Memo
To: Honorable Mayor and Members of the Town Council
From: Tom Brymer, Town Manager
Debbie Piper, Director of Finance
Subject: Workshop Meeting of March 23, 2009
Date: March 16, 2009
ITEM
Discussion and Consideration of Town/Westlake Academy Financial Policies.
VISION POINT AND KEY RESULT AREAS
This item supports the following Vision Point and Key Result Areas:
; We are Leaders
o Premier educational facilities and programs
o Producing well educated future leaders and thinkers
o Environmental stewardship initiatives
o High quality services delivery coupled with financial stewardship
o Infrastructure maintenance and planning
BACKGROUND:
The Town Council’s adopted budget for the past two fiscal years has contained financial
policies that guide the compilation and consideration of the municipal budget. These
policies helped the Town attain recognition from the Governmental Finance Officers
Association for the Town’s 2007-2008 Budget. Presently there are no financial policies
for the Academy. At the February 23, 2009 Council workshop a new budget 09-10
budget calendar/process was presented by staff which has the Council involved earlier in
the budget process as it pertains to reviewing budget policies and the financial forecast.
The Council’s consensus was to use the budget calendar presented at the February 23rd
workshop to prepare the proposed 09-10 municipal and Academy budgets.
FUNDING:
N/A at this time.
RECOMMENDATION:
Review the proposed revisions to the financial policies for the Town budget, as well as
for the proposed financial policies for the Academy, and provide feedback/direction to
the staff about them.
ATTACHMENTS:
1. 09-10 Municipal and Academy Budget Calendar
2. Current Town financial policies for municipal budget.
3. Proposed revised Town financial policies for municipal budget.
4. Proposed Westlake Academy financial policies for Academy budget.
Council/TrusteesReview calendar and processes
CouncilReview and update Municipal Financial Policies
TrusteesPresent Financial Policies for Westlake Academy
CouncilReview Municipal 5-year Financial Forecast
CouncilReview Capital Improvement Program - Long-term
TrusteesPresent Proposed Academy Budget
TrusteesPossible workshop on Academy Budget
CouncilPresent CIP budget for FY 09/10
Council/Trustees Strategic Planning Mini-Retreat
May-09
Jun-09
~ FY 09-10 Municipal and Academy ~
Budget Calendar
Feb-09
Mar-09
Apr-09
Council/Trustees Strategic Planning Mini-Retreat
CouncilPresent Municipal Budget with 5-year Forecast
Trustees Re-present Westlake Academy Budget
TrusteesPossible workshop on Academy Budget
CouncilPossible workshop on Municipal Budget
TrusteesPresent Proposed Academy Budget for Board approval
CouncilPossible workshop on Municipal Budget
CouncilPublic Hearing on Municipal Budget
CouncilPresent Proposed FY 2009-2010/Amend FY 2008/2009
Municipal Budget for Council approval
Sep-09
Jul-09
Aug-09
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
190
To establish and document a policy framework for fiscal decision‐making, the Town Manager will develop
and maintain a comprehensive set of Financial Management Policy Statements. The aim of these policies is
to ensure that financial resources are available to meet the present and future needs of the citizens of
Westlake. Specifically this policy framework mandates the pursuit of the following fiscal objectives:
Revenues: Design, maintain and administer a revenue system that will assure a reliable, equitable,
diversified and sufficient revenue stream to support desired Town services.
Expenditures: Identify priority services, establish appropriate service levels and administer the
expenditure of available resources to assure fiscal stability and the effective and efficient delivery of
services.
Fund Balance/Retained Earnings: Maintain the fund balance and retained earnings of the various
operating funds at levels sufficient to protect the Town's creditworthiness as well as its financial position
from emergencies.
Capital Expenditures and Improvements: Annually review and monitor the state of the Town's capital
equipment and infrastructure, setting priorities for its replacement and renovation based on needs,
funding alternatives, and availability of resources.
Debt: Establish guidelines for debt financing that will provide needed capital equipment and
infrastructure improvements while minimizing the impact of debt payments on current revenues
Investments: Invest the Town's operating cash to ensure its safety, provide for necessary liquidity and
optimize yield.
Intergovernmental Relations: Coordinate efforts with other governmental agencies to achieve common
policy objectives, share the cost of providing governmental services on an equitable basis and support
favorable legislation at the state and federal level.
Grants: Seek, apply for and effectively administer federal, state and foundation grants‐in‐aid which
address the Town's current priorities and policy objectives.
Economic Development: Initiate, encourage and participate in economic development efforts to create
job opportunities and strengthen the local economy
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
191
Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Town's
financial performance and economic condition.
Financial Consultants: With available resources, seek out and employ the assistance of qualified financial
advisors and consultants in the management and administration of the Town's financial functions.
Accounting, Auditing and Financial Reporting: Comply with prevailing federal, state and local statutes
and regulations. Conform to generally accepted accounting principles as promulgated by the
Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants
(AICPA), and the Government Finance Officers Association (GFOA).
Operating Budget: Prepare, present and approve the Town’s annual operating plan.
Asset Management: Establish guidelines for all areas of asset management, e.g. Investments, Fixed
Assets.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
192
I. Revenues
To design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and
sufficient revenue stream to support desired Town services.
Balance and Diversification in Revenue Sources ‐ The Town shall strive to maintain a balanced and
diversified revenue system to protect the Town from fluctuations in any one source due to changes
in local economic conditions which adversely impact that source.
User Fees ‐ For services that benefit specific users the Town shall establish and collect fees to
recover the costs of those services. The Town Board shall determine the appropriate cost recovery
level and establish the fees. Where feasible and desirable, the Town shall seek to recover full direct and
indirect costs. User fees shall be reviewed on a regular basis to calculate their full cost recovery levels,
to compare them to the current fee structure, and to recommend adjustments where necessary.
Property Tax Revenues ‐ The Town shall endeavor to avoid a property tax by revenue diversification,
implementation of user fees, and economic development.
Utility/Enterprise Funds User Fees ‐ Utility rates and Enterprise Fund’s user fees shall be set at
levels sufficient to cover operating expenditures, meet debt obligations, provide additional funding
for capital improvements, and provide adequate levels of working capital. The Town shall seek to
eliminate all forms of subsidization to utility/enterprise funds from the General Fund.
Administrative Services Charge ‐ The Town shall establish a method to determine annually the
administrative services charges allocated to all funds for overhead and staff support.
Revenue Estimates for Budgeting ‐ In order to maintain a stable level of services, the Town shall
use a conservative, objective, and analytical approach when preparing revenue estimates. The
process shall include analysis of probable economic changes and their impacts on revenues,
historical collection rates, and trends in revenues. This approach should reduce the likelihood of
actual revenues falling short of budget estimates during the year and should avoid mid‐year service
reductions.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
193
Revenue Collection and Administration ‐ The Town shall maintain high collection rates for all
revenues by keeping the revenue system as simple as possible in order to facilitate payment. In
addition, since revenue should exceed the cost of producing it, the Town shall strive to control and
reduce administrative costs. The Town shall pursue to the full extent allowed by state law all
delinquent taxpayers and others overdue in payments to the Town.
II. Expenditures
To assure fiscal stability and the effective and efficient delivery of services, through the identification of
necessary services, establishment of appropriate service levels, and careful administration of the
expenditure of available resources.
Current Funding Basis ‐ The Town shall operate on a current funding basis. Expenditures shall be
budgeted and controlled so as not to exceed current revenues plus the planned use of fund
balance accumulated through prior year savings. (The use of fund balance shall be guided by the
Fund Balance/Retained Earnings Policy Statements.)
Avoidance of Operating Deficits ‐ The Town shall take immediate corrective actions if at any time
during the fiscal year expenditure and revenue re‐estimates are such that an operating deficit (i.e.,
projected expenditures in excess of projected revenues) is projected at year‐end. Corrective
actions can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance
within the Fund.
o Balance/Retained Earnings Policy. Expenditure deferrals into the following fiscal year,
short‐term loans, or use of one‐time revenue sources shall be avoided to balance the
budget.
Maintenance of Capital Assets ‐ Within the resources available each fiscal year, the Town shall
maintain capital assets and infrastructure at a sufficient level to protect the Town's investment, to
minimize future replacement and maintenance costs, and to continue service levels.
Periodic Program Reviews ‐ The Town Manager shall undertake periodic staff and third‐party
reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with
other governmental agencies will be evaluated as alternative approaches to service delivery.
Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or
eliminated.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
194
Purchasing ‐ The Town shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use competitive bidding in accordance to State law to attain the
best possible price on goods and services.
Prompt Payment – All invoices will be paid within 30 days of receipt in accordance with the prompt
payment requirements of State law.
III. Fund Balance/Retained Earnings
To maintain the fund balance and retained earnings of the various operating funds at levels sufficient to
protect the Town's creditworthiness as well as its financial positions from unforeseeable emergencies.
General Fund Undesignated Fund Balance ‐ The Town shall strive to maintain the General Fund
undesignated fund balance at 90 days of operation.
Retained Earnings of Other Operating Funds ‐ In the Utility Fund, the Town shall strive to maintain
positive retained earnings positions to provide sufficient reserves for emergencies and revenue
shortfalls.
Use of Fund Balance/Retained Earnings ‐ Fund Balance/Retained Earnings shall be used only for
emergencies, not recurring expenditures, or major capital purchases that cannot be
accommodated through current year savings. Should such use reduce the balance below the
appropriate level set as the objective for that fund, recommendations will be made on how to
restore it.
IV. Capital Expenditures and Improvements
To annually review and monitor the state of the Town's capital equipment and infrastructure, setting
priorities for its replacement and renovation based on needs, funding, alternatives, and availability of
resources.
Capital Improvement Planning Program ‐ The Town shall annually review the needs for capital
improvements and equipment, the current status of the Town's infrastructure, replacement and
renovation needs, and potential new projects. All projects, ongoing and proposed, shall be prioritized
based on an analysis of current needs and resource availability. For every capital project, all
operation, maintenance and replacement costs shall be fully costed.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
195
Replacement of Capital Assets on a Regular Schedule ‐ The Town shall annually prepare a schedule
for the replacement of its non‐infrastructure capital assets. Within the resources available each fiscal
year, the Town shall replace these assets according to the aforementioned schedule.
Capital Expenditure Financing ‐ The Town recognizes that there are three basic methods of financing
its capital requirements. It can budget the funds from current revenues; it can take the funds from
fund balance/retained earnings as allowed by the Fund Balance/Retained Earnings Policy; or it can
borrow money through debt. Debt financing includes general obligation bonds, revenue bonds,
certificates of obligation, lease/purchase agreements, certificates of participation, and commercial
paper. Guidelines for assuming debt are set forth in the Debt Policy Statements.
V. Debt
To utilize debt financing which will provide needed capital equipment and infrastructure improvements
while minimizing the impact of debt payments on current revenues.
Use of Debt Financing ‐ Debt financing, to include general obligation bonds, revenue bonds,
certificates of obligation, certificates of participation, commercial paper, and lease/purchase
agreements, shall only be used to purchase capital assets that can not be financed from either
current revenues or fund balance/retained earnings and to fund infrastructure improvements and
additions. The useful life of the asset or project shall exceed the payout schedule of any debt the
Town assumes.
Assumption of Additional Debt ‐ The Town shall not assume more tax‐supported general purpose
debt than it retires each year without conducting an objective analysis as to the community's
ability to assume and support additional debt service payments.
Affordability Targets ‐ The Town shall use an objective analytical approach to determine whether it
can afford to assume new general purpose debt beyond what it retires each year. This process
shall compare generally accepted standards of affordability to the current values for the Town. The
process shall also examine the direct costs and benefits of the proposed expenditures. The decision
on whether or not to assume new debt shall be based on these costs and benefits and on the
Town's ability to "afford” new debt as determined by the aforementioned standards. The Town
shall strive to achieve and/or maintain these standards at a low to moderate classification.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
196
Debt Structure ‐ The Town shall structure its debt payment schedules for general purpose debt to
ensure level principal repayment schedules. The Town shall not assume any debt with "balloon'
repayment schedules which consist of low annual payments and one large payment of the balance
due at the end of the term. While balloon payment structures minimize the size of debt payments
during the period, they force a large funding requirement on the budget of the final year. Given the
uncertainties of the future, level payment schedules improve budget planning and financial
management.
Sale Process ‐ The Town shall use a competitive bidding process in the sale of debt unless the
nature of the issue warrants a negotiated bid. The Town shall award bonds based on a true interest
cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine
the lowest and best bid.
Bond Rating Agencies Presentations ‐ Full disclosure of operations and open lines of
communication shall be made to the bond rating agencies. Town staff, with assistance of financial
advisors, shall prepare the necessary materials and presentation to the bond rating agencies.
Continuing Disclosure ‐ The Town is committed to continuing disclosure of financial and pertinent
credit information relevant to the Town's outstanding securities.
Debt Refunding ‐ Town staff and the financial advisor shall monitor the municipal bond market for
opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the
present value savings of a particular refunding should exceed 3.5% of the refunded maturities.
VI. Investments
To invest the Town's cash in such a manner so as to insure the absolute safety of principal and interest, to
meet the liquidity needs of the Town, and to achieve the highest possible yield. Interest earned from
investments shall be distributed to the operating and other Town funds from which the money was
provided.
VII. Intergovernmental Relations
To coordinate efforts with other governmental agencies to achieve common policy objectives, share the cost
of providing government services on an equitable basis, and support favorable legislation at the state and
federal levels.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
197
Inter‐local Cooperation in Delivering Services ‐ In order to promote the effective and efficient delivery
of services, the Town shall actively seek to work with other local jurisdictions in joint purchasing
consortia, sharing facilities, sharing equitably the costs of service delivery, and developing joint
programs to improve service to its citizens.
Legislative Program ‐ The Town shall cooperate with other jurisdictions to actively oppose any state
or federal regulation or proposal that mandates additional Town programs or services and does not
provide the funding to implement them. Conversely, as appropriate, the Town shall support
legislative initiatives that provide more funds for priority local programs.
VIII. Grants
To seek, apply for and effectively administer federal, state and foundation grants‐in‐aid that address the
Town's current priorities and policy objectives.
Grant Guidelines ‐ The Town shall apply, and facilitate the application by others, for only those grants
that are consistent with the objectives and high priority needs previously identified by Council. The
potential for incurring ongoing costs, to include the assumption of support for grant funded positions
from local revenues, will be considered prior to applying for a grant.
Grant Review ‐ All grant submittals shall be reviewed for their cash match requirements, their
potential impact on the operating budget, and the extent to which they meet the Town's policy
objectives. If there are cash match requirements, the source of funding shall be identified prior to
application.
Grant Program Termination ‐ The Town shall terminate grant funded programs and associated
positions when grant funds are no longer available unless alternate funding is identified.
IX. Economic Development
To initiate, encourage and participate in economic development efforts to create job opportunities and
strengthen the local economy.
Positive Business Environment ‐ The Town shall endeavor, through its regulatory and administrative
functions, to provide a positive business environment in which local businesses can grow, flourish
and create jobs. The Town Board and Town staff will be sensitive to the needs, concerns and issues
facing local businesses.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
198
Commitment to Business Expansion, Diversification, and Job Creation ‐ The Town shall encourage
and participate in economic development efforts to expand Westlake's economy to increase local
employment. These efforts shall not only focus on newly developing areas but also on other
established sections of Westlake where development can generate additional jobs and other
economic benefits.
Coordinate Efforts with Other Jurisdictions ‐ The Town's economic development program shall
encourage close cooperation with other local jurisdictions, chambers of commerce, and groups
Interested in promoting the economic well‐being of this area.
X. Fiscal Monitoring
To prepare and present regular reports to analyze, evaluate and forecast the Town's financial performance
and economic condition.
Financial Status and Performance Reports ‐ Quarterly reports comparing expenditures and revenues
to current budget, projecting expenditures and revenues through the end of the year, noting the
status of fund balances to include dollar amounts and percentages, and outlining any remedial
actions necessary to maintain the Town's financial position shall be prepared for review by the Town
Manager and the Council.
Compliance with Board Policy Statements ‐ The Financial Management Policy Statements will be
reviewed annually by the Board and updated, revised or refined as deemed necessary. Policy
statements adopted by the Board are guidelines, and occasionally, exceptions may be appropriate
and required. However, exceptions to stated policies will be specifically identified, and the need for
the exception will be documented and fully explained.
XI. Financial Consultants
To employ the assistance of qualified financial advisors and consultants as needed in the management and
administration of the Town's financial functions. These areas include but are not limited to investments, debt
administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors
shall be selected on a competitive basis using objective questionnaires and requests for proposals based on
the scope of the work to be performed.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
199
XII. Accounting, Auditing, and Financial Reporting
To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial
reporting. Accounting practices and financial reporting shall conform to generally accepted accounting
principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute
of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The
Board shall select an independent firm of certified public accountants to perform an annual audit of all
operations
Accounting ‐ Town’s Finance Director is responsible for establishing the chart of accounts and for
properly recording financial transactions.
External Auditing ‐ Town will be audited annually by outside independent accountants (auditors).
The auditors must be a CPA firm and must demonstrate significant experience in the field of local
government auditing. They must conduct the town’s audit in accordance with generally accepted
auditing standards and be knowledgeable in the Government Finance Officers Association Certificate
of Achievement program. The auditors’ report on town’s financial statements will be completed
within a timely period of the Town’s fiscal year‐end. The Town will not require auditor rotation, but
will circulate request for proposal for audit services on a periodic basis as deemed appropriate.
External Financial Reporting ‐ Town will prepare and publish a comprehensive annual financial report
(CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles and
will be presented annually to the Government Finance Officers Association (GFOA) for evaluation
and awarding of the Certificate of Achievement for Excellence in Financial Reporting.
Internal Financial Reporting ‐ The Finance Department will prepare internal financial reports
sufficient for management to plan, monitor, and control Town’s financial affairs.
XIII. Operating Budget
Preparation – Town’s annual operating budget will be prepared by a budget team consisting of the
Town Manager, Finance Director and other staff members appointed by the Town Manager to
participate. A budget preparation calendar and timetable will be established and followed in
accordance with State law.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
200
Balanced Budget ‐ Current operating revenues including Property Tax Reduction Sales Tax transfers,
which can be used for operations, will be sufficient to support current operating expenditures.
Annually recurring revenue will not be less than annually recurring operating budget expenditures
(operating budget minus capital outlay. Debt or bond financing will not be used to finance current
expenditures.
Budget Amendments ‐ The Finance Department will monitor all financial operations. The budget
team will decide whether to proceed with the budget amendment and, if so, will then present the
matter to the Board of Aldermen. If the Board decides a budget amendment is necessary, the
amendment is adopted in ordinance format and the necessary budgetary changes are then made.
Reporting ‐ Monthly financial reports will be prepared by the Finance Department and distributed to
and reviewed by each department head. Information obtained from financial reports and other
operating reports is to be used by department heads to monitor and control the budget as
authorized by the Town Manager.
Performance Measures & Productivity Indicators ‐ Where appropriate, performance measures and
productivity indicators will be used as guidelines and reviewed for efficiency and effectiveness. This
information will be included in the annual budget process.
XIV. Asset Management
Investments – The Town’s Board of Aldermen have formally approved a separate Investment Policy
for the Town of Westlake that meets the requirements of the Public Funds Investment Act (PFIA),
Section 2256 of the Texas Local Government Code. Town’s investment practices will be conducted in
accordance with this policy.
Cash Management ‐ Town’s cash flow will be managed to maximize the cash available to invest.
Investment Performance ‐ As per state law, the Finance Director will issue quarterly reports on
investment activity to the Board of Aldermen.
Fixed Assets and Inventory ‐ Such assets will be reasonably safeguarded and properly accounted for
and prudently insured. The fixed asset inventory will be updated regularly.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
201
Capitalization Criteria – For purposes of budgeting and accounting classification, the following criteria
must be capitalized:
o The asset is owned by the Town of Westlake
o The expected useful life of the asset must be longer than one year, or extend the life on an
identifiable existing asset by more than one year
o The original cost of the asset must be at least $5,000
o The asset must be tangible
o On‐going repairs and general maintenance are not capitalized
o New Purchases – All costs associated with bringing the asset into working order will be
capitalized as part of the asset cost. This will include start up costs, engineering or consultant
type fees as part of the asset cost once the decision or commitment to purchase the asset is
made. The cost of land acquired should include all related costs associated with its purchase
o Improvements and Replacement – Improvement will be capitalized when they extend the
original life of an asset or when they make the asset more valuable than it was originally. The
replacement of assets components will normally be expenses unless they are a significant
nature and meet all the capitalization criteria.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
1
I. STATEMENT OF PURPOSE
The overall intent of the following Fiscal and Budgetary Policy Statements is to enable the Town to achieve
a long‐term stable and positive financial condition. The watchwords of the Town’s financial management
include integrity, prudent, stewardship, planning, accountability, and full disclosure.
The more specific purpose is to provide guidelines to the Town Manager and Finance Director in planning
and directing the Town’s day‐to‐day financial affairs and in developing recommendations to the Town
Manger and Town Council.
The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial
reporting, internal controls, operating and capital budgeting, revenue management, cash and investment
management, expenditure control, asset management, debt management, and planning concepts, in order
to:
• Present fairly and with full disclosure the financial position and results of the financial operations of
the Town in conformity with generally accepted accounting principles (GAAP), and
• Determine and demonstrate compliance with finance related legal and contractual issues in
accordance with provisions of the Texas Local Government Code and other pertinent legal
documents and mandates.
The Town Council will annually review and approve the Fiscal and Budgetary Policy Statements as part of
the budget process.
II. SUMMARY OF POLICY INTENDED OUTCOMES
This policy framework mandates pursuit of the following fiscal objectives:
Operating Budget: Prepare, conservatively estimate revenues, present, and adopt the Town’s annual
operating plan.
Revenues Management: Design, maintain, and administer a revenue system that will assure a reliable,
equitable, diversified, and sufficient revenue stream to support desired Town services.
Expenditure Control: Identify priority services, establish appropriate service levels, and administer the
expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
2
Fund Balance/Retained Earnings: Maintain the fund balance and retained earnings of the various operating
funds at levels sufficient to protect the Town’s creditworthiness as well as its financial position from
emergencies.
Debt Management: Establish guidelines for debt financing that will provide needed capital equipment and
infrastructure improvements while minimizing the impact of debt payments on current revenues.
Intergovernmental Relationships: Where feasible, coordinate efforts with other governmental agencies to
achieve common policy objectives, share the cost of providing governmental services on an equitable basis
and support favorable legislation at the State and Federal level.
Grants: Seek, apply for and effectively administer within this policy’s guidelines, Federal, State, and
foundation grants‐in‐aid which address the Town’s current priorities and policy objectives.
Economic Development: Initiate where feasible, encourage, and participate in economic development
efforts to create job opportunities and strengthen the local tax base and economy
Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Town’s
financial performance and economic condition.
Financial Consultants: With available resources, seek out and employ the assistance of qualified financial
advisors and consultants in the management and administration of the Town’s financial functions.
Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and
regulations. Conform to generally accepted accounting principles as promulgated by the Government
Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the
Government Finance Officers Association (GFOA).
Capital Improvement Plan/Budget and Program: Multi‐year planning, forecasting, preparation, and control
of the Town’s capital improvement plan/budget.
Capital Maintenance and Replacement: Annually review and monitor the state of the Town’s capital
equipment and infrastructure, setting priorities for its replacement and renovation based on needs, finding
alternatives, and availability of resources.
Internal Controls: To establish and maintain an internal control structure designed to provide reasonable
assurances that the Town’s assets are safeguarded and that the possibilities for material errors in the Town’s
financial records are minimized.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
3
III. OPERATING BUDGET
• Preparation ‐ Budgeting is an essential element of the financial planning, control and evaluation
process of municipal government. The “operating budget” is the Town’s annual financial operating
plan. The budget includes all of the operating departments of the Town, the debt service fund, all
capital projects funds, and the internal service funds of the Town. The proposed budget will be
prepared with the cooperation of all Town departments, and is submitted to the Town Manager who
makes any necessary changes and transmits the document to the Town Council. A budget
preparation calendar and timetable will be established and followed in accordance with State law.
• Revenue Estimates for Budgeting ‐ In order to maintain a stable level of services, the Town shall
use a conservative, objective, and analytical approach when preparing revenue estimates. The
process shall include analysis of probable economic changes and their impacts on revenues,
historical collection rates, and trends in revenues. This approach should reduce the likelihood of
actual revenues falling short of budget estimates during the year and should avoid mid‐year service
reductions.
• Balanced Budget ‐ As per State Law, current operating revenues, including Property Tax Reduction
Sales Tax transfers (which can be used for operations), will be sufficient to support current operating
expenditures. Annually recurring revenue will not be less than annually recurring operating budget
expenditures (operating budget minus capital outlay). Debt or bond financing will not be used to
finance current expenditures.
• Proposed Budget Process ‐ a proposed budget shall be prepared by the Town Manager with the
participation of all of the Town’s department directors.
The proposed budget shall include four basic segments for review and evaluation: (1)
personnel costs, (2) base budget for operations and maintenance costs, (3) service level
adjustments for increases of existing service levels or additional services, and (4) revenues.
The proposed budget review process shall include Council participation in the review of each of
the four segments of the proposed budget and a public hearing to allow for citizen
participation in the budget preparation.
The proposed budget process shall allow sufficient time to provide review, as well as address
policy and fiscal issues, by the Town Council.
A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to
the Town Council as well as placed on the Town’s website.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
4
• Budget Adoption ‐ Upon the determination and presentation of the final iteration of the proposed
budget as established by the Council, a public hearing date and time will be set and publicized. The
Council will subsequently consider a resolution which, if adopted, such budget becomes the Town’s
Approved Annual Budget. The adopted budget will be effective for the fiscal year beginning October
1. The approved budget will be placed on the Town’s web site.
• Budget Award ‐ Each year the Council approved operating budget will be submitted annually to the
Government Finance Officers Association (GFOA) for evaluation and consideration for the Award for
Distinguished Budget Presentation.
• Budget Amendments ‐ Department Directors are responsible for monitoring their respective
department budgets. The Finance Department will monitor all financial operations. The budget team
will decide whether to proceed with a budget amendment and, if so, will then present the request to
the Town Council. If the Council decides a budget amendment is necessary, the amendment is
adopted in resolution format and the necessary budgetary changes are then made.
• Central Control ‐ Modifications within the operating categories (salaries, supplies, maintenance,
services, capital, etc.) can be made with the approval of the Town Manager. Modifications to reserve
categories and interdepartmental budget totals will be made only by Town Council consent with
formal briefing and Council action.
• Planning ‐ The budget process will be coordinated so as to identify major policy issues for Town
Council by integrating it into the Council’s overall strategic planning process for the Town. Each
department shall have a multi‐year business plan that integrates with the Town’s overall strategic
plan.
• Reporting ‐ Monthly financial reports will be prepared by the Finance Department and distributed to
and reviewed by each Director. Information obtained from financial reports and other operating
reports is to be used by Directors to monitor and control departmental budget. Summary financial
reports will be presented to the Town Council quarterly.
• Performance Measures & Productivity Indicators ‐ Where appropriate, performance measures and
productivity indicators will be used as guidelines to measure efficiency, effectiveness, and outcomes
of Town services. This information will be included in the annual budget process as needed.
• Contingent Appropriation ‐ During the budget process, staff will attempt to establish an adequate
contingent appropriation in each of the operating funds. The expenditure for this appropriation shall
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
5
be made only in cases of emergency, and a detailed account shall be recorded and reported. The
proceeds shall be disbursed only by transfer to departmental appropriation.
All transfers from the contingent appropriation will be evaluated using the following criteria:
Is the request of such an emergency nature that it must be made immediately?
Why was the item not budgeted in the normal budget process?
Why can’t the transfer be made within the department?
IV. REVENUES MANAGEMENT
A. REVENUE DESIGN PARAMETERS. The Town will pursue the following optimum characteristics in its
revenue system:
• Simplicity ‐ The Town, where possible and without sacrificing accuracy, will strive to keep the
revenue system simple in order to reduce costs, achieve transparency, and increase citizen
understanding of Town revenue sources.
• Certainty ‐ A knowledge and understanding of revenue sources reliability increases the viability of
the revenue system. The Town will understand, to the best of its ability, all aspects of its revenue
sources and their performance, as well as enact consistent collection policies to provide assurances
that the revenue base will materialize according to budgets, forecasts, and plans.
• Equity ‐ The Town shall make every effort to maintain equity in its revenue system: i.e. the Town
shall seek to minimize or eliminate all forms of subsidization between entities, funds, services
utilities, and customer classes within a utility.
• Administration ‐ The benefits of a revenue source will not exceed the cost of collecting that
revenue. Every effort will be made for the cost of collection to be reviewed annually for cost
effectiveness as a part of the Town’s indirect cost and cost of service analysis.
• Adequacy, Diversification and Stability ‐ The Town shall attempt, in as much as is practical, to
achieve a balance in its revenue system. The Town shall also strive to maintain a balanced and
diversified revenue system to protect the Town from fluctuations in any one source due to changes
in local economic conditions which adversely impact that revenue source.
B. OTHER CONSIDERATIONS. The following considerations and issues will guide the Town in its revenue
policies concerning specific sources of funds:
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
6
• Cost/Benefit of Incentives for Economic Development ‐ The Town will use due caution in the analysis
of any tax or fee incentives that are being considered to encourage economic development. A
cost/benefit (fiscal impact) analysis will be performed as a part of the evaluation for each proposed
economic development project.
• Non‐Recurring Revenues ‐ One‐time or non‐recurring revenues will not be used to finance on‐going
operational costs. Non‐recurring revenues will be used only for one‐time expenditures such as long‐
lived capital needs or one‐time major maintenance projects that occur infrequently. Non‐recurring
revenues will not be used for budget balancing purposes except to cover the one‐time expenditures
described above.
• Investment Income ‐ Earnings from investment of available monies, whether pooled or not, will be
distributed to the funds in accordance with the equity balance of the fund from which monies were
provided to be invested.
• Property Tax Revenues ‐ The Town shall endeavor to avoid a property tax by revenue diversification,
implementation of user fees, and economic development.
C. USER‐BASED (DEMAND DRIVEN) FEES AND SERVICE CHARGES. For services that are demand driven
and can be associated with a user fee or charge, the direct and indirect costs of that service will be offset
by a fee where possible. The Town staff will endeavor to prepare a review of all fees and charges
annually, but not less than once every three years, in order to ensure that these fees provide for, at
minimum, full cost recovery of service.
D. ENTERPRISE FUND RATES. Utility rates and rate structures for water and sewer services will be
constructed to target full cost of service recovery. Annually the Town will review and adopt water and
sewer utility rates and a rate structure that generates revenue sufficient to fully cover operating
expenses, meet the legal restrictions of all applicable bond covenants, provide for an adequate level of
working capital, and recover applicable general/administrative costs. The Solid Waste function will have
rates that fully recover all costs and maintain an adequate balance. The Cemetery Fund will be
structured to operate on lot sales and endowments.
General and Administrative (G&A) Charges – Where feasible, G&A costs will be charged to all
funds for services of indirect general overhead costs, which may include general
administration, finance, customer billing, facility use, personnel, technology, engineering, legal
counsel, and other costs as deemed appropriate. These charges will be determined through
an indirect cost allocation study following accepted practices and procedures.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
7
E. INTERGOVERNMENTAL REVENUES. As a general rule, intergovernmental revenues (grants) will not be
utilized for on‐going operating costs. Any potential grant opportunity will be examined to identify all
costs related to matching and continuation of program requirements. Staff will focus on one‐time grants
to avoid long‐term implications. If it is determined that accepting a grant with on‐going cost conditions is
in the interests of the Town, all the operating and maintenance costs must be included in the financial
forecast and their ultimate effect on operations and revenue requirements be known.
F. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted
revenues and variances will be investigated. This process will be summarized in the appropriate budget
report.
V. EXPENDITURE CONTROL
• Appropriations – The point of budgetary control is at the department level in the General Fund and
at the fund level in all other funds. When budget adjustments among Departments and/or funds
are necessary, they must be approved by the Town Council.
• Current Funding Basis ‐ The Town shall operate on a current funding basis. Expenditures shall be
budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance
accumulated through prior year savings. (The use of fund balance shall be guided by the Fund
Balance/Retained Earnings Policy Statements.)
• Avoidance of Operating Deficits ‐ The Town shall take immediate corrective actions if at any time
during the fiscal year expenditure and revenue re‐estimates are such that an operating deficit (i.e.,
projected expenditures in excess of projected revenues) is projected at year‐end. Corrective actions
can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance within the
Fund.
• Balance/Retained Earnings Policy‐ Expenditure deferrals into the following fiscal year, short‐term
loans, or use of one‐time revenue sources shall be avoided to balance the budget.
• Maintenance of Capital Assets ‐ Within the resources available each fiscal year, the Town shall
maintain capital assets and infrastructure at a sufficient level to protect the Town's investment, to
minimize future replacement and maintenance costs, and to continue service levels.
• Periodic Program Reviews ‐ The Town Manager shall undertake periodic staff and third‐party
reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
8
other governmental agencies will be evaluated as alternative approaches to service delivery.
Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or
eliminated.
• Purchasing ‐ The Town shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use competitive bidding in accordance to State law, as well as
intergovernmental partnerships and purchasing cooperatives to attain the best possible price on
goods and services.
• Prompt Payment ‐ All invoices will be paid within 30 days of receipt in accordance with the prompt
payment requirements of State law.
VI. FUND BALANCE/RETAINED EARNINGS
• General Fund Undesignated Fund Balance ‐ The Town shall strive to maintain the General Fund
undesignated fund balance at, or in excess of, 90 days of operation.
• Retained Earnings of Other Operating Funds ‐ In the Utility Fund, the Town shall strive to maintain
positive retained earnings positions to provide sufficient reserves for emergencies and revenue
shortfalls.
• Use of Fund Balance/Retained Earnings ‐ Fund Balance/Retained Earnings shall be used only for
emergencies, not recurring expenditures, or major capital purchases that cannot be accommodated
through current year savings. Should such use reduce the balance below the appropriate level set
as the objective for that fund, recommendations will be made on how to restore it.
VII. DEBT MANAGEMENT
• Debt Issuance Analysis ‐ All consideration of debt issuance for major capital assets will be prepared
within the framework of a Council approved multi‐year capital improvement plan and forecast for
all Town facilities and infrastructure.
• Analysis of Debt Issuance and Debt Issuance Alternatives ‐ Staff will explore alternatives to the
issuance of debt for capital acquisitions and construction projects. These alternatives will include,
but not be limited to, (1) grants‐ in‐ aid, (2) use of reserves, (3) use of either current on‐going
general revenues or one‐time revenues, (4) contributions from developers and others, (5) leases,
(6) user fees, and (7) impact fees.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
9
• Use of Debt Financing ‐ The useful life of the asset or project shall, at a minimum, exceed the
payout schedule of any debt the Town assumes. Debt financing instruments to be considered by
the Town may include:
General obligation bonds. These must be authorized by a vote of the citizens of Westlake.
Revenue bonds. These bonds generate capital requirements necessary for continuation or
expansion of a service which produces revenue and for which the asset may reasonable be
expected to provide for a revenue stream to fund the debt service requirement.
Certificates of obligation. These can be authorized by Council approval with debt service by
either general revenues or backed by a specific revenue stream or a combination of both.
Lease/purchase agreements. These shall only be used to purchase capital assets that can
not be financed from either current revenues or fund balance/retained earnings and to fund
infrastructure improvements and additions.
• Assumption of Additional Debt ‐ The Town shall not assume more tax‐supported general purpose
debt than it retires each year without first conducting an objective analysis as to the community's
ability to assume and support additional debt service payments.
• Affordability Targets ‐ The Town shall use an objective multi‐year analytical approach to determine
whether it can afford to assume new general purpose debt beyond what it retires each year. This
process shall compare generally accepted standards of affordability to the current values for the
Town. The process shall also examine the direct costs and benefits of the proposed expenditures.
The decision on whether or not to assume new debt shall be based on these costs and benefits and
on the Town's ability to "afford” new debt as determined by the aforementioned standards. The
Town shall strive to achieve and/or maintain these standards at a low to moderate classification.
• Debt Structure ‐ The Town shall structure its debt payment schedules for general purpose debt to
ensure level principal repayment schedules. The Town shall not assume any debt with "balloon'
repayment schedules which consist of low annual payments and one large payment of the balance
due at the end of the term. While balloon payment structures minimize the size of debt payments
during the period, they force a large funding requirement on the budget of the final year. Given the
uncertainties of the future, level payment schedules improve budget planning and financial
management.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
10
• Sale Process ‐ The Town shall use a competitive bidding process in the sale of debt unless the
nature of the issue warrants a negotiated bid. The Town shall award bonds based on a true interest
cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine
the lowest and best bid.
• Bond Rating Agencies Presentations ‐ Full disclosure of operations and open lines of
communication shall be made to the bond rating agencies. Town staff, with assistance of financial
advisors, shall prepare the necessary materials and presentation to the bond rating agencies.
• Continuing Disclosure ‐ The Town is committed to continuing disclosure of financial and pertinent
credit information relevant to the Town's outstanding securities.
• Debt Refunding ‐ Town staff and the financial advisor shall monitor the municipal bond market for
opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the
present value savings of a particular refunding should exceed 3.5% of the refunded maturities.
VIII. INTERGOVERNMENTAL RELATIONSHIPS
The Town will pursue coordinated efforts with other governmental agencies to achieve common policy
objectives, share the cost of providing government services on an equitable basis, and support favorable
legislation at the State and Federal levels.
• Inter‐local Cooperation in Delivering Services ‐ In order to promote the effective and efficient
delivery of services, the Town shall actively seek to work with other local jurisdictions in joint
purchasing consortia, sharing facilities, sharing equitably the costs of service delivery, and developing
joint programs to improve service to its citizens.
• Legislative Program ‐ The Town shall cooperate with other jurisdictions to actively oppose any State
or Federal regulation or proposal that mandates additional Town programs or services and does not
provide the funding to implement them. Conversely, as appropriate, the Town shall support
legislative initiatives that provide more funds for priority local programs.
IX. GRANTS
• Grant Guidelines ‐ The Town shall apply, and facilitate the application by others, for only those grants
that are consistent with the objectives and high priority needs previously identified above in these
policies. The potential for incurring on‐going costs, to include the assumption of support for grant
funded positions from local revenues, will be considered prior to applying for a grant.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
11
• Grant Review ‐ All grant submittals shall be reviewed for their cash match requirements, their
potential impact on the operating budget, and the extent to which they meet the Town's policy
objectives. If there are cash match requirements, the source of funding shall be identified prior to
application. Staff will focus on one‐time grants to avoid long‐term implications related to additional
expenditures in future years.
• Grant Program Termination ‐ The Town shall terminate grant funded programs and associated
positions when grant funds are no longer available unless alternate funding is identified.
X. ECONOMIC DEVELOPMENT
• Positive Business Environment ‐ The Town shall endeavor, through its regulatory and administrative
functions, to provide a positive business environment in which local businesses can grow, flourish and
create jobs. The Town Council and Town staff will be sensitive to the needs, concerns and issues
facing local businesses.
• Commitment to Business Expansion, Diversification, and Job Creation ‐ The Town shall encourage
and participate in economic development efforts to expand Westlake's economy to increase local
employment. These efforts shall not only focus on newly developing areas but also on other
established sections of Westlake where development can generate additional jobs and other
economic benefits.
• Coordinate Efforts with Other Jurisdictions ‐ The Town's economic development program shall
encourage close cooperation with other local jurisdictions, chambers of commerce, and groups
Interested in promoting the economic well‐being of this area.
• Cost/Benefit of Incentives for Economic Development ‐ The Town will use due caution in the analysis
of any tax or fee incentives that are used to encourage economic development. A cost/benefit (fiscal
impact) analysis will be performed as part of such evaluation for each prospect. Economic
development agreements will contain performance language as to the business’s proposed economic
impact to Westlake in exchange for Town incentives with adequate “claw‐back” provisions for the
Town.
XI. FISCAL MONITORING
• Financial Status and Performance Reports ‐ Quarterly reports comparing expenditures and revenues
to current budget, projecting expenditures and revenues through the end of the year, noting the
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
12
status of fund balances to include dollar amounts and percentages, and outlining any remedial actions
necessary to maintain the Town's financial position shall be prepared for review by the Town
Manager and the Council.
• Compliance with Council Policy Statements ‐ The Fiscal and Budgetary Policies will be reviewed
annually by the Council and updated, revised or refined as deemed necessary. Policy statements
adopted by the Council are guidelines, and occasionally, exceptions may be appropriate and required.
However, exceptions to stated policies will be specifically identified, and the need for the exception
will be documented and fully explained.
XII. FINANCIAL CONSULTANTS
To employ the assistance of qualified financial advisors and consultants as needed in the management and
administration of the Town's financial functions. These areas include but are not limited to investments, debt
administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors
shall be selected on a competitive basis using objective questionnaires and requests for proposals based on
the scope of the work to be performed.
XIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial
reporting. Accounting practices and financial reporting shall conform to generally accepted accounting
principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute
of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board
shall select an independent firm of certified public accountants to perform an annual audit of all operations
• Accounting – The Town is solely responsible for the recording and reporting of its financial affairs,
both internally and externally. The Town’s Finance Director is responsible for establishing the
structure for the Town’s chart of accounts and for assuring that procedures are in place to properly
record financial transactions and report the Town’s financial position.
• External Auditing ‐ Town will be audited annually by outside independent accountants (auditors).
The auditors must be a CPA firm and must demonstrate significant experience in the field of local
government auditing. They must conduct the town’s audit in accordance with generally accepted
auditing standards and be knowledgeable in the Government Finance Officers Association Certificate
of Achievement program. The auditors’ report on Town’s financial statements will be completed
within a timely period of the Town’s fiscal year‐end. The auditor will jointly review the management
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
13
letter with the Town Council, if necessary. In conjunction with this review, the Finance Director shall
respond in writing to the Town Council regarding the auditor’s Management Letter, addressing the
issued contained therein. The Town will not require auditor rotation, but will circulate request for
proposal for audit services on a periodic basis as deemed appropriate.
• External Financial Reporting ‐ Town will prepare and publish a comprehensive annual financial report
(CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles and
will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and
awarding of the Certificate of Achievement for Excellence in Financial Reporting.
• Responsibility of Auditor to Town Council – The auditor is retained by and it accountable directly to
the Town Council and will have access to direct communication with the Town Council if the Town
Staff is unresponsive to auditor recommendations or if the auditor considers such communication
necessary to fulfill its legal and professional responsibilities.
• Internal Financial Reporting ‐ The Finance Department will prepare internal financial reports
sufficient for management to plan, monitor, and control Town’s financial affairs.
XIV. CAPITAL BUDGET AND PROGRAM
• Preparation ‐ The Town’s capital budget will include all capital projects funds and all capital resources.
While the capital budget will be prepared annually on a project basis, it will be based on an on‐going,
multi‐year capital improvement plan (CIP) that shows all funded and unfunded projects as identified
by staff for all Town facilities and infrastructure. The multi‐year CIP will be reviewed annually,
updated by staff and presented to the Council for its review and approval. The annual capital budget
will be prepared by the Finance Department with the involvement of responsible departments based
on the multi‐year CIP.
• Control ‐ All capital project expenditures must be appropriated in the capital budget. The Finance
Director must certify the availability of resources before any capital project contract is presented to
the Town Council for approval.
• Program Planning ‐ The capital budget will be taken from the capital improvements project plan for
future years. The planning time frame for the capital improvements project plan should normally be
five years, with a minimum of at least three years. The replacement and maintenance for capital
items should also be projected for the next five years. Future maintenance and operational costs will
be considered so that these costs can be included as appropriate in the annual budget.
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
14
• Financing Programs ‐ Where applicable and with Council approval, impact fees, pro‐rata charges,
assessments, or other fees should be used to fund capital projects which have a primary benefit to
specific, identifiable property owners.
Recognizing that long‐term debt is usually a more expensive financing method, alternative
financing sources will be explored before debt is issued. When debt is issued, it will be
used to acquire major assets with expected lives which equal or exceed the average life of
the debt issue.
• Reporting ‐ Periodic financial reports will be prepared to enable the department directors to manage
their capital budgets. Summary capital project status reports will be presented to the Town Council
quarterly.
XV. CAPITAL MAINTENANCE AND REPLACEMENT
The Town recognizes that deferred maintenance and not anticipating capital replacement needs
increases future capital costs. Annually, available funds will be evaluated during the budget process and
a percentage of each operating fund’s budget will be recommended to the Council for transfer. Upon
approval by the Council, the recommended amount will be transferred to the appropriate funds (General
or Utility Major Maintenance and Vehicle & Equipment Replacement) for major maintenance/
replacement of street, building roof, flooring, air conditioning, equipment, etc.
XVI. INTERNAL CONTROLS
• Written Procedures ‐ Whenever possible, written procedures will be established and maintained by
the Finance Director for all functions involving purchasing, cash handling and/or accounting
throughout the Town. These procedures will embrace the general concepts of fiscal responsibility set
for in this policy statement.
• Department Directors’ Responsibilities ‐ Each department director is responsible for ensuring that
good internal controls are followed throughout his/her department, that all directives or internal
controls are implemented, and that all independent auditor internal control recommendations are
addressed. Departments will develop and periodically update written internal control procedures.
XVII. ASSET MANAGEMENT
• Investments – The Finance Director shall promptly invest all Town funds with the depository bank in
accordance with the provisions of the current Bank Depository Agreement or in any negotiable
TOWN OF WESTLAKE
FISCAL AND BUDGETARY POLICIES
15
instrument authorized by the Town Council. Further, investments shall be made in accordance
with the Investment Policy approved by the Town Council for the Town of Westlake that meets the
requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government
Code. The Finance Director will issue quarterly reports on investment activity to the Town Council.
• Cash Management ‐ Town’s cash flow will be managed to maximize the cash available to invest. Such
cash management will entail the centralization of cash collections, where feasibility, including utility
bills, building and related permits and license, fines, fees, and other collection offices as appropriate.
Periodic review of cash flow position will be performed to determine performance of cash
management and conformance to investment policies. The underlying theme will be that idle cash
will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return.
• Fixed Assets and Inventory ‐ Such assets will be reasonably safeguarded and properly accounted for
and prudently insured. The fixed asset inventory will be updated regularly.
• Capitalization Criteria – For purposes of budgeting and accounting classification, the following criteria
must be capitalized:
The asset is owned by the Town of Westlake
The expected useful life of the asset must be longer than one year, or extend the life on an
identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible
On‐going repairs and general maintenance are not capitalized
New Purchases – All costs associated with bringing the asset into working order will be
capitalized as part of the asset cost. This includes start up costs, engineering or consultant
type fees as part of the asset cost once the decision or commitment to purchase the asset is
made. The cost of land acquired should include all related costs associated with its purchase
Improvements and Replacement – Improvement will be capitalized when they extend the
original life of an asset or when they make the asset more valuable than it was originally. The
replacement of assets components will normally be expenses unless they are a significant
nature and meet all the capitalization criteria.
• Computer System/Data Security – The Town shall provide security of its computer/network system
and data files through physical and logical security systems that will include, but are not limited to:
network user authentications, firewalls, content filtering, spam/virus protection, and redundant data
backup.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
1
I. STATEMENT OF PURPOSE
The broader intent of the following Fiscal and Budgetary Policy Statements is to enable Westlake
Academy (Academy) to achieve a long‐term stable and positive financial condition. The
watchwords of the Academy’s financial management include integrity, prudence, stewardship,
planning, accountability, and full disclosure.
The more specific purpose is to provide guidelines to the Finance Director in planning and directing
the Academy’s day‐to‐day financial affairs and in developing recommendations to the Academy
CEO, Head of School, and Academy Board of Trustees.
The scope of these policies generally span, among other issues, accounting, purchasing, auditing,
financial reporting, internal controls, operating budgeting, revenue management, cash and
investment management, expenditure control, asset management, debt management, and
planning concepts, in order to:
• Present fairly and with full disclosure the financial position and results of the financial
operations of the Academy in conformity with generally accepted accounting principles
(GAAP), and
• Determine and demonstrate compliance with finance related legal and contractual issues in
accordance with provisions of the Texas Local Government Code and other pertinent legal
documents and mandates.
The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy
Statements as part of the budget process.
II. SUMMARY OF POLICY INTENDED OUTCOMES
This policy framework mandates pursuit of the following fiscal objectives:
Operating Budget: Prepare, conservatively estimate revenues, present and adopt the Academy’s
annual operating plan.
Revenues Management: Design, maintain and administer a revenue system that will assure a
reliable, equitable, diversified and sufficient revenue stream to support desired Academy services.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
2
Expenditure Control: Identify priority services, establish appropriate service levels and administer
the expenditure of available resources necessary to assure fiscal stability and the effective and
efficient delivery of services.
Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect
the Academy’s creditworthiness as well as its financial position from emergencies.
Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy
objectives, share the cost of providing governmental services on an equitable basis and support
favorable legislation at the State and Federal level.
Grants: Seek, apply for and effectively administer Federal, State, and foundation grants‐in‐aid which
address the Academy’s current priorities and policy objectives.
Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the
Academy’s financial performance and economic condition.
Financial Consultants: With available resources, seek out and employ the assistance of qualified
financial advisors and consultants in the management and administration of the Academy’s financial
functions.
Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local
statues and regulations. Conform to generally accepted accounting principles as promulgated by the
Government Accounting Standards Board (GASB), the American Institute of Certified Public
Accountants (AICPA), and the Government Finance Officers Association (GFOA).
Internal Controls: To establish and maintain an internal control structure designed to provide
reasonable assurances that the Academy’s assets are safeguarded and that the possibilities for
material errors in the Academy’s financial records are minimized.
III. OPERATING BUDGET
• Preparation – Budgeting is an essential element of the financial planning, control, and
evaluation process. The “operating budget” is the Academy’s annual financial operating plan
related to educational service instructional costs.
The Academy operating budget is legally required to include the Academy’s General,
Debt Service, and Food Service Funds. Currently, Westlake Academy only has one
fund, the General Fund, which must be legally adopted annually. The Academy
budgets the Special Revenue Funds for informational purposes only and to more
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
3
completely present all operational costs.
Information to be prepared includes documentation related to Service Level
Adjustments (SLAs) for increases to existing service levels or additional services,
position control schedules, general and administrative cost implications, etc. will be
submitted and reviewed during the budget process.
SLA’s related to new position requests will include an assessment of their impact on
additional internal services necessary to support these positions as it relates to
General & Administrative (G&A) charges in the Academy budget ( subject to funding
availability) to fund these costs.
A budget preparation calendar and timetable will be established and followed in
accordance with State law.
• Revenue Estimates for Budgeting ‐ In order to maintain a stable level of services, the
Academy shall use a conservative, objective, and analytical approach when preparing
revenue estimates. The process shall include analysis of probable economic changes and
their impacts on revenues, number of students, and trends in revenues. It will also include
an assessment of the State legislative environment related to public charter school funding
levels. This approach should reduce the likelihood of actual revenues falling short of budget
estimates during the year and should avoid mid‐year service reductions.
• Balanced Budget – Current operating revenues, including State “Foundation” funds,
donations and grants which can be used for operations, will be sufficient to support current
operating expenditures. Annually recurring revenue will not be less than annually recurring
operating budget expenditures.
• Proposed Budget Content and Process – The Head of School is responsible for preparing the
draft proposed Academy operating budget. A proposed budget shall be prepared by the
Head of School with the participation of a budget team comprised of the Academy’s Senior
Management Team, Finance Director, and Academy staff (as determined by the Head of
School), and then submitted to the CEO for review. Following CEO review, the proposed
budget will be presented to the Board for its consideration.
The proposed budget shall include five basic segments for review and evaluation: (1)
personnel costs, (2) base budget for operations and maintenance costs, (3) service
level adjustments for increases of existing service levels or additional services, (4)
revenues, and (5) general/administrative (G&A) costs.
The proposed budget review process shall include Board of Trustees review of all
segments of the proposed budget and a public hearing to allow for citizen
participation in the budget preparation process.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
4
Concurrent with the Academy budget preparation, Town staff will identify and
provide to the Board all direct Academy expenses contained in the Town’s municipal
budget.
The proposed budget process shall allow sufficient time to provide review as well as
address policy and fiscal issues by the Board of Trustees.
A copy of the proposed budget shall be filed with the Town Secretary when it is
submitted to the Board of Trustees as well as placed on the Academy’s website.
• Budget Adoption ‐ Upon the determination and presentation of the final iteration of the
proposed budget document as established by the Board of Trustees, a public hearing will be
set and publicized. The Board will subsequently consider a resolution which, if adopted, such
budget becomes the Academy’s Approved/Adopted Annual Budget. The adopted budget will
be effective for the fiscal year beginning September 1 and shall be placed on the Academy’s
web site.
• Budget Amendments – The Head of School, CEO, and Finance Department will monitor all
financial operations. The budget team will decide whether to proceed with the budget
amendment and, if so, will then present the request to the Academy Board of Trustees. If the
Board decides a budget amendment is necessary, the amendment is adopted in resolution
format and the necessary budgetary changes are then made.
• Planning – The budget process will be coordinated so as to identify major policy issues for the
Board of Trustees by integrating it into the Board’s overall strategic planning process for the
Academy.
• Reporting ‐ Monthly financial reports will be prepared by the Finance Department and
distributed to the CEO and Head of School. Information obtained from financial reports and
other operating reports is to be used by personnel to monitor and control the budget.
Summary financial reports will be presented to the Board quarterly.
IV. REVENUES MANAGEMENT
A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum
characteristics in its revenue system:
• Simplicity ‐ The Academy, where possible and without sacrificing accuracy, will strive to
keep the revenue system simple in order to reduce costs, achieve transparency, and
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
5
increase parent understanding of Academy revenue sources.
• Certainty ‐ A thorough knowledge and understanding of revenue sources increases the
reliability of the revenue system.
• Administration ‐ The benefits of a revenue source will exceed the cost of administering
that revenue. Every effort will be made for the cost of administration to be reviewed
annually for cost effectiveness as a part of the indirect cost and cost of service analysis.
• Adequacy, Diversification and Stability – To the extent practical, the Academy shall
attempt to achieve a balance in its revenue system. The Academy shall also strive to
maintain a balanced and diversified revenue system to protect the Academy from
fluctuations in any one source due to changes in local economic conditions which adversely
impact that source.
B. REVENUE SOURCES. Currently, Westlake Academy receives revenue to fund its annual
operating budget from the following sources:
• State Education funding
• State and Federal Grants
• General Donations – The Academy recognizes that private donations comprise a significant
part of the Westlake Academy budget. All funds received will become part of the General
Fund operating budget and be subject to appropriation for Academy general operations.
Blacksmith Apprentice Program (via Westlake Academy Foundation)
Local Merchants
Specific Purpose Donations/Grants/Gifts – Funds donated or granted for a specific
purpose
C. REVENUE MONITORING. Revenues as they are received will be regularly compared to
budgeted revenues and variances will be investigated. This process will be summarized in the
appropriate budget report.
V. EXPENDITURE CONTROL
• Appropriations – The point of budgetary control is at the function level in the General
Fund and Special Revenue Funds. When budget adjustments among functions are
necessary, they must be approved by the Academy Board of Trustees.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
6
• Current Funding Basis ‐ The Academy shall operate on a current funding basis.
Expenditures shall be budgeted and controlled so as not to exceed current revenues plus
the planned use of fund balance accumulated through prior year savings. (The use of fund
balance shall be guided by the Fund Balance portion of this policy).
• Avoidance of Operating Deficits ‐ The CEO and the Head of School shall take immediate
corrective actions if at any time during the fiscal year expenditure and revenue re‐
estimates are such that an operating deficit (i.e., projected expenditures in excess of
projected revenues) is projected at year‐end. Corrective actions can include a hiring
freeze, expenditure reductions, or use of fund balance within the Fund. Use of fund
balance must be recommended by the CEO and approved by the Board of Trustees.
Expenditure deferrals into the following fiscal year, short‐term loans, or use of one‐
time revenue sources shall be avoided to balance the budget.
• Periodic Program Reviews ‐ The Head of School shall undertake periodic staff and third‐
party reviews of Academy programs for both efficiency and effectiveness. Where
appropriate, privatization and contracting with other governmental agencies will be
evaluated and considered as alternative approaches to service delivery. Programs which
are determined to be inefficient and/or ineffective shall be reduced in scope or
eliminated.
• General and Administrative (G&A) Charges – To the extent practical, an annual analysis
of G&A charges will be performed by the Finance Director and funding allocated, if
available. The analysis shall involve an objective consideration of the service demands
currently being met by municipal staff to support Academy operations and a
determination of factors that will continue to affect and increase the time needed for the
performance of these services. For example, new Academy staff requires additional
support staff time to perform multiple on‐going tasks related to insurance, payroll, etc.
Where feasible, G&A costs will be charged to all Academy funds for services of indirect
general overhead costs, which may include general administration, finance, facility use,
personnel, technology, engineering, legal counsel, and other costs as deemed appropriate.
The charges will be determined through an indirect cost allocation study following accepted
practices and procedures.
• Purchasing ‐ The Academy shall make every effort to maximize any discounts offered by
creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive
bidding in accordance with State law to attain the best possible price on goods and
services.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
7
• Prompt Payment ‐ All invoices will be paid within 30 days of receipt in accordance with
the prompt payment requirements of State law.
VI. FUND BALANCE
• General Fund Undesignated Fund Balance ‐ The Academy shall strive to maintain the
General Fund undesignated fund balance at 45 days of operation.
• Use of Fund Balance ‐ Fund Balance shall be used only for emergencies, not recurring
expenditures, and must receive Board approval. Fund Balance may also be used, with
Board approval, for major capital purchases that cannot be accommodated through
current year savings or major maintenance projects that occur infrequently. Should such
use reduce the balance below the appropriate levels set as the objective for that fund,
recommendations will be made on how to restore it. As a general practice, use of Fund
Balance should be avoided. Use of Fund Balance must be recommended by the CEO and
then be approved by the Board of Trustees before it can be appropriated.
VII. CAPITAL PROJECTS
• Historically, capital improvement budgeting for Westlake Academy has been accomplished
through the Town of Westlake’s municipal budget. Capital improvement projects to be
considered for Westlake Academy must be entered into the multi‐year capital improvement
planning process for the Town. Consideration of any Westlake Academy capital
improvement project, regardless of funding source, shall be within the context and
framework of a Town Council approved multi‐year capital improvement plan/forecast for all
Town facilities and infrastructure (both funded and unfunded projects), including Westlake
Academy. As such, Westlake Academy proposed capital improvement projects are subject
to the policy guidelines for capital projects and debt issuance contained in the Town’s Fiscal
and Budgetary Policies.
VIII. INTERGOVERNMENTAL RELATIONSHIPS
• Inter‐local Cooperation in Delivering Services ‐ In order to promote the effective and
efficient delivery of services, the Academy shall actively seek, where feasible, to work with
other local entities in joint purchasing consortia, sharing facilities, sharing equitably the
costs of service delivery, and developing joint programs to improve service to it’s students.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
8
• Legislative Program ‐ The Academy shall cooperate with other entities to actively oppose
any State or Federal regulation or proposal that mandates additional Academy programs or
services and does not provide the funding to implement them. Conversely, as appropriate,
the Academy shall support legislative initiatives that provide additional funding.
IX. GRANTS
• Grant Guidelines ‐ The Academy, or its designated representative, shall vigorously pursue
and apply for those grants that are the CEO and/or Head of School are consistent with the
strategic priorities identified by the Board of Trustees. The potential for incurring ongoing
costs, to include the assumption of support for grant funded positions from local revenues,
will be considered prior to applying for a grant.
• Grant Review ‐ All grant submittals shall be reviewed for their cash match requirements,
their potential impact on the operating budget, and the extent to which they meet the
Academy's policy objectives. If there are cash match requirements, the source of funding
shall be identified prior to application. Generally, staff will focus on one‐time grants to avoid
long‐term implications related to additional expenditures in future years.
• Grant Program Termination ‐ The Academy shall terminate grant funded programs and
associated positions when grant funds are no longer available unless alternate funding is
identified and obtained.
X. FISCAL MONITORING
• Financial Status and Performance Reports ‐ Quarterly reports comparing expenditures and
revenues to current budget, noting the status of fund balances to include dollar amounts
and percentages, and outlining any remedial actions necessary to maintain the Academy's
financial position shall be prepared for review by the CEO, Head of School, and the Board of
Trustees.
• Compliance with Board Policy Statements ‐ The Fiscal and Budgetary Policies will be
reviewed annually by the Board of Trustees and updated, revised or refined as deemed
necessary. Policy statements adopted by the Board of Trustees are guidelines, and
occasionally, exceptions may be appropriate and required. However, exceptions to stated
policies will be specifically identified, and the need for the exception will be documented
and fully explained.
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
9
XI. FINANCIAL CONSULTANTS
To employ the assistance of qualified financial advisors and consultants as needed in the
management and administration of the Academy's financial functions. These areas include, but are
not limited to, investments, debt administration, financial accounting systems, program evaluation,
and financial impact modeling. Advisors shall be selected on a competitive basis using objective
questionnaires and requests for proposals based on the scope of the work to be performed.
XII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
Academy finances shall comply with prevailing local, State, and Federal regulations relative to
accounting, auditing, and financial reporting. Academy accounting practices and financial reporting
shall conform to generally accepted accounting principles as promulgated by the Governmental
Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, (AICPA),
and the Government Finance Officers Association (GFOA). The Board shall select an independent firm
of certified public accountants to perform an annual audit of all operations. Required Texas Education
Agency (TEA) account coding will be used for all revenue and expenditure reporting.
• Accounting ‐ Currently, the Education Service Center (Region XI) books all revenues and
expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding
and approval of expenditures and revenues. Documentation and coding of deposits are
forwarded to the Town’s Finance Department for review and preparation of deposit slips.
The Finance Director and staff are responsible for review and transfer of invoices and other
documentation to the Service Center for processing as well as the physical deposit of funds.
It is the responsibility of the Head of School and Academy staff to review the monthly
reports for any discrepancies and report to the Finance Director for analysis and re‐class of
questioned bookings, if appropriate.
• External Auditing ‐ Academy will be audited annually by outside independent accountants
(auditors). The auditors must be a CPA firm and must demonstrate significant experience in
the field of local government auditing. They must conduct the Academy’s audit in
accordance with generally accepted auditing standards. The auditors’ report on Academy’s
financial statements will be completed within a timely period of the Academy’s fiscal year‐
end. The auditor will jointly review the management letter with the Board of Trustees, if
necessary. In conjunction with this review, the Finance Director shall respond in writing to
the Board of Trustees regarding the auditor’s Management Letter, addressing the issued
contained therein. The Academy will not require auditor rotation, but will circulate request
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
10
for proposal for audit services on a periodic basis as deemed appropriate.
• Responsibility of Auditor to Board of Trustees ‐ The auditor is retained by and is
accountable directly to the Board of Trustees. The auditor will have access to direct
communication with the Board of Trustees if the Academy Staff is unresponsive to auditor
recommendations or if the auditor considers such communication necessary to fulfill its
legal and professional responsibilities.
• Internal Financial Reporting ‐ The Finance Department will prepare internal financial
reports sufficient for management to plan, monitor, and control Academy’s financial affairs.
XIII. INTERNAL CONTROLS
• Written Procedures ‐ Whenever possible, written procedures will be established and
maintained by the Finance Director and utilized by all Academy personnel for all functions
involving purchasing, cash handling and/or accounting throughout the Academy. These
procedures will embrace the general concepts of fiscal responsibility and internal control set
forth in this policy statement.
• Academy Staff Responsibilities ‐ The Head of School, in consultation with the Finance
Director, will be responsible for ensuring that appropriate internal controls are followed
throughout the Academy, that all directives or internal controls are implemented, and that
all independent auditor internal control recommendations are addressed. Academy staff
will develop and periodically update written internal control procedures in consultation with
the Finance Director.
XIV. ASSET MANAGEMENT
• Investments – The Finance Director shall promptly invest all Academy funds with the
depository bank in accordance with the provisions of the current Bank Depository
Agreement or in any negotiable instrument authorized by the Board of Trustees. The Board
of Trustees has formally approved a separate Investment Policy for the Academy of Westlake
that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the
Texas Local Government Code. The Academy’s investment practices will be conducted in
accordance with this policy. The Finance Director will issue quarterly reports on investment
activity to the Board of Trustees.
• Cash Management ‐ Academy’s cash flow will be managed to maximize the cash available to
invest. Such cash management will entail the centralization of cash collections, where
WESTLAKE ACADEMY
FISCAL AND BUDGETARY POLICIES
11
feasible, including field trips, and other collection offices as appropriate. Periodic review of
cash flow position will be performed to determine performance of cash management and
conformance to investment policies. The underlying theme will be that idle cash will be
invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize
return.
• Fixed Assets and Inventory ‐ Such assets will be reasonably safeguarded and properly
accounted for and prudently insured. The fixed asset inventory will be updated regularly.
• Capital Assets – Currently all capital assets of Westlake Academy are owned and purchased
by the Town of Westlake. In subsequent years, additional asset purchases may be paid with
Westlake Academy funds.
• Capitalization Criteria – For purposes of budgeting and accounting classification, the following
criteria must be capitalized:
The asset is owned by the Westlake Academy
The expected useful life of the asset must be longer than one year, or extend the
life on an identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible
On‐going repairs and general maintenance are not capitalized
New Purchases – All costs associated with bringing the asset into working order
will be capitalized as a part of the asset cost. This includes start up costs,
engineering or consultant type fees as part of the asset cost once the decision or
commitment to purchase the asset is made. The cost of land acquired should
include all related costs associated with its purchase
Improvements and Replacement – Improvement will be capitalized when they
extend the original life of an asset or when they make the asset more valuable
than it was originally. The replacement of assets components will normally be
expenses unless they are a significant nature and meet all the capitalization
criteria.
• Computer System/Data Security – The Academy shall provide security of its
computer/network system and data files through physical and logical security systems that
will include, but are not limited to: network user authentications, firewalls, content filtering,
spam/virus protection, and redundant data backup.
Town of Westlake
Memo
To: Honorable Mayor and Members of the Town Council
From: Don Wilson, Director of Public Safety
Subject: Workshop Meeting of March 23, 2009
Date: February 24, 2009
ITEM
Hear and discuss the potential regulated use of Wireless Communication Devices.
VISION POINT AND KEY RESULT AREAS
This item supports the following Vision Point and Key Result Areas:
9 Inviting Residential and Corporate Neighborhoods
• On-going comprehensive planning
9 Hospitality Finds Its Home in Westlake
• Citizen engagement and communication
BACKGROUND
The utilization of wireless communications devices has recently been in the forefront of the
concerned public, especially when being used in the vicinity of schools. Many communities as
well as the State of Texas legislation are reviewing this issue.
This workshop is designed to discuss current trends by communities located in North Central
Texas, the proposed legislation currently before our State of Texas representatives, and
suggested options for regulation of these devices on the premises and in the immediate vicinity
of Westlake Academy.
Wireless Communication Devices, for the purpose of this workshop will be defined as any
electronic device capable of receiving and transmitting voice and text messages over the airways.
FUNDING
No current funding impact for this agenda item
RECOMMENDATION
No staff recommendations prior discussion
ATTACHMENTS
1. PowerPoint Presentation
2. Town of Highland Park Ordinance
3. List of currently filed State of Texas legislative bills
3/17/2009
1
WIRELESS COMMUNICATION
DEVICES
THISPRESENTATIONSUPPORTSTHEFOLLOWING VISION
POINTAND KEY RESULT AREAS:
9 INVITING RESIDENTIALAND CORPORATE
NEIGHBORHOODS
•ON-GOINGCOMPREHENSIVEPLANNING
9 HOSPITALITY FINDS ITS HOMEIN WESTLAKE
•CITIZENENGAGEMENTANDCOMMUNICATION
WIRELESS COMMUNICATION
DEVICES UTILIZATION
THEUSEOFWIRELESSCOMMUNICATION DEVICES, ESPECIALLYCELL
PHONES, WHILEDRIVINGHASCOMETOTHEFOREFRONTDUETO:
•COMPLAINTSTO PUBLIC SAFETY OFFICIALSFROM
INDIVIDUALSEXPERIENCINGACCIDENTSORNEARACCIDENTS
BYINDIVIDUALSDRIVINGANDUSINGSUCHDEVICES
•PRESSUREFROM INSURANCECOMPANIESTOLIMITTHEIRUSE
DUE TO THE NUMBER OF ACCIDENTS PURPORTEDLYDUETOTHENUMBEROFACCIDENTSPURPORTEDLY
OCCURRINGWHILEDRIVERSUSETHESEDEVICES
•PARENTS / PARENTGROUPSCONCERNEDWITHYOUNGAND
INEXPERIENCEDDRIVERSUSINGTHESEDEVICESWHILE
DRIVING
3/17/2009
2
LEGISLATIVE OPTIONS
CURRENTLYTWOVIABLELEGISLATIVEOPTIONSEXIST:
•LOCALORDINANCES –APPROXIMATELY 11 NORTH
TEXASCOMMUNITIESHAVEORDINANCES
ADDRESSINGORLIMITINGTHEUSEOFWIRELESS
COMMUNICATIONDEVICESWHILEOPERATINGA
VEHICLE
S L•STATE LAWS –CURRENTLYTHEREISNOSPECIFIC
STATELAWLIMITINGTHEUSEOFWIRELESS
COMMUNICATIONDEVICESWHILEOPERATINGA
VEHICLE. HOWEVER, THEREAREAPPROXIMATELY 14
BILLSSUBMITTEDFORCONSIDERATION
LOCAL ORDINANCES
TYPICALLYLOCALORDINANCESADDRESSTHE
UTILIZATION OF DEVICES IN SCHOOL ZONES DURINGUTILIZATIONOFDEVICESINSCHOOLZONESDURING
SCHOOLHOURSLIMITING:
•TALKINGORTEXTINGWHILEUSINGITASAHAND
HELDWIRELESSCOMMUNICATIONDEVICESISVERY
COMMON
•THEUSEOFALLWIRELESSCOMMUNICATION
DEVICES AS A HAND HELD INSTRUMENT IS COMMONDEVICESASAHANDHELDINSTRUMENTISCOMMON
BUTEXCEPTIONSEXIST
•THEUSETOCONDUCTTWO –WAY
COMMUNICATIONSISCOMMONLYTHEGOALOFTHE
ORDINANCES
3/17/2009
3
LOCAL ORDINANCES
(CONTINUED)
LOCAL ORDINANCES ARE ENFORCED BY FINES –TYPICALLY A CLASS “C” LOCAL ORDINANCES ARE ENFORCED BY FINES TYPICALLY A CLASS C
MISDEMEANORIN MUNICIPAL COURT
LOCALORDINANCESHAVEEXCEPTIONS, SUCHAS:
•USETOCONTACTANEMERGENCYRESPONDER, I.E., FIRE, POLICE, EMS
•USETOCONTACTALOCALHOSPITAL, PHYSICIAN, ORCLINIC
•MAY BE USED TO WHILE PARKEDMAYBEUSEDTOWHILEPARKED
•MAYBEUSEDTOLOCATEANINDIVIDUAL
•MAYBEUSEDTOANSWERANINCOMINGCALLBUTSHOULDINFORM
THECALLERTHATTHEYAREINASCHOOLZONEANDWILLHAVE
RETURNTHEIRCALL
PROPOSED STATE LAWS
PROPOSED STATELAWSREGULATINGTHEUSEOFWIRELESS
COMMUNICATION DEVICES TARGETCOMMUNICATIONDEVICESTARGET:
•ANALLOUTBANOFSUCHDEVICESUNLESSOPERATORIS
STOPPED
•A BANONTEXTINGONLY
•PROHIBITTHEIRUSEINSCHOOLZONESORSCHOOL
CROSSINGS
•PROHIBITTHEIRUSEBYDRIVERSUNDERTHEAGEOF 18
•DOUBLETHEFINESFORCERTAINTRAFFICVIOLATIONSIN
CASESWHERETHEPERSONCOMMITSTHEOFFENSEWHILE
USINGAWIRELESSCOMMUNICATIONDEVICE
3/17/2009
4
STAFF RECOMMENDS
•DELAYACTIONONALOCALORDINANCE
SUNTILTHESTATELEGISLATIVESESSIONIS
COMPLETED
•SIGNSHAVEBEENPOSTEDONTHECAMPUS
OF WESTLAKE ACADEMYANDAPOLICYOF
NO WIRELESSCOMMUNICATIONDEVICES
BEINGUSEDONCAMPUSDURINGSTUDENT
DROPOFFANDPICKUPWILLCONTINUETOBE
ENFORCEDBYVOLUNTARYCOMPLIANCE
u
lJ
u
ORDINANCE NO 1716
AN ORDINANCE OF THE TOWN OF HIGHLAND PARK TEXAS SUPPLEMENTING
CHAPTER 12 TRAFFIC AND VEHICLES ARTICLE 12 04 OPERATION OF VEHICLES
GENERALLY OF THE CODE OF ORDINANCES OF THE TOWN OF HIGHLAND PARK
AND ENACTING A NEW SECTION 12 04 014 USE OF HAND HELD MOBILE
TELEPHONES PROHffiITED IN SCHOOL ZONES PROVIDING FOR A PENALTY
CLAUSE PROVIDING FOR A SEVERABILITY CLAUSE PROVIDING FOR
INCORPORATION INTO THE CODE OF ORDINANCES AND PROVIDING AN
EFFECTIVE DATE
WHEREAS to further serve and protect school aged children traveling to and from elementary
schools and other educational facilities throughout the state the State of Texas has adopted
certain laws regulating the speed of motor vehicles in a school zone said laws applying only
on official school days and during the hours when the school zone is in effect and
WHEREAS using a hand held mobile telephone alka a cell phone while operating a motor
vehicle necessarily distracts the actor from his or her operation of said motor vehicle and thus
causes him or her to concentrate less on driving safely and
WHEREAS using a hand held mobile telephone while operating a motor vehicle necessarily
limits the actor s ability to steer and maneuver said motor vehicle and
WHEREAS the Town of Highland Park Texas Town finds that the use of a hand held
mobile telephone while operating a motor vehicle in a school zone on official school days and
during hours when the school zone is in effect creates a danger or probability of it to school
children and others that the Town seeks to minimize and
WHEREAS the safety of all school aged children traveling to and from elementary schools and
other educational facilities located in the Town is of paramount importance to the Town and as
such demands a high standard of positive care and control and
WHEREAS strict liability offenses include not only those that are regulatory public welfare
or mala prohibita in nature but also those for example that are designed to protect children and
WHEREAS the States of California Connecticut New Jersey New York and Washington ban
the use of hand held mobile telephones while operating a motor vehicle and
WHEREAS the Town desires to implement those rules and regulations that protect health life
and property and that preserve good government order and security of the Town and its
inhabitants
NOW THEREFORE BE IT ORDAINED by the Town Council of the Town of Highland Park
Texas
SECTION 1 That Chapter 12 Traffic and Vehicles Article 12 04 Operation of Vehicles
Generally of the Code of Ordinances of the Town of Highland Park is hereby supplemented
and a new Section 12 04 014 Use of Hand Held Mobile Telephones Prohibited in School
Zones is hereby enacted and is to read as follows
Page I of 3
u
u
u
Sec 12 04 014 Use of Hand Held Mobile Telephones Prohibited in School Zones
a For purposes of this section the following definitions apply
1 Engaging in a call shall mean talking into dialing or listening on a hand held
mobile telephone but shall not include holding a mobile telephone to activate or deactivate such
telephone
2 Hands free mobile telephone shall mean a mobile telephone that has an internal
feature or function or that is equipped with an attachment or addition whether or not
permanently part of such mobile telephone by which a user engages in a call without the use of
either hand or prosthetic device or aid in the case of a physically disabled person whether or
not the use of either hand or prosthetic device is necessary to activate deactivate or initiate a
function of such telephone
3 Hand held mobile telephone shall mean a mobile telephone with which a user
engages in a call using at least one hand or prosthetic device or aid in the case of a physically
disabled person
4 Mobile telephone shall mean the device used by subscribers and other users of
wireless telephone service to access such service and shall include Personal Digital Assistants
5 Personal Digital Assistant shall mean a device operated using a wireless
telecommunications service that provides for data communication other than by voice
6 Wireless telephone service shall mean two way real time voice
telecommunications service that is interconnected to a public switched telephone network and
commonly referred to as cellular service or personal communication service
b Except as otherwise provided below it shall be unlawful for a person to drive or operate a
motor vehicle in a school zone as designated in section 12 06 004 on official school days
during the hours when school zones are in effect and when school zone signs and signs
prohibiting hand held mobile telephone use are posted in place while using a hand held mobile
telephone to engage in a call or to create send or read messages
c An operator of a motor vehicle who holds a mobile telephone to or in the immediate
proximity of his or her ear while such vehicle is in motion is presumed to be engaging in a call
within the meaning of this section Immediate proximity shall mean that distance as permits
the operator of a mobile telephone to hear telecommunications transmitted over such mobile
telephone but shall not require physical contact with such operator s ear
d Subsection b shall not apply to
1 the use of a mobile telephone for the sole purpose of communicating with any of
the following regarding an emergency situation an emergency response operator a hospital a
physician s office or health clinic the Town s Department of Public Safety
Page 2 of3
u
u
u
2 any law enforcement public safety or police officers emergency services officials
first aid emergency medical technicians and personnel or any fire safety officials in the
performance of duties arising out of and in the course of their employment as such or
3 the use of a hands free mobile telephone when being used in a hands free manner
e The violation of this section is a strict liability offense
SECTION 2 Penalty That any person violating any of the provisions of this Ordinance shall
be deemed guilty of a misdemeanor and upon conviction thereof may be fined as provided in
Section 1 01 009 of the Code of Ordinances of the Town of Highland Park Texas
SECTION 3 Severability That if any section or portion of this Ordinance is for any reason
held to be invalid or unconstitutional by a decision of a court of competent jurisdiction that
section or portion shall be deemed severable and shall not affect the validity of the remaining
portions of the Ordinance
SECTION 4 Incorporation That this Ordinance shall be and the same is hereby deemed to
be incorporated into the Code of Ordinances of the Town of Highland Park Texas
SECTION 5 Effective Date That this Ordinance shall become effective on December 1 2007
PASSED AND APPROVED by the Town Council of the Town of Highland Park Texas on this
12th day of November 2007
APPROVED AS TO FORM
tfk
APPROVED
LI
Albert D Hammack
Town Attorney
William D White Jr
Mayor
ATTEST
Town Secretary
Page 3 of 3
Proposed Wireless Communication Devices Legislation before the
State of Texas
The following legislation is currently under consideration by State Representatives that
may impact the use of wireless communication devices, in particular cellular telephones.
Provided at the end of each item is a status of the proposed legislation. The list provided is
current as of March 17, 2009.
H.B. 55 (Branch) – Cell Phone Ban: would make the use of a wireless communication
device while operating a motor vehicle within a school crossing zone a class C misdemeanor,
subject to certain exceptions. Status – Left pending in Transportation Committee
H.B. 219 (Menendez) – Cell Phone Ban: would: (1) make the use of a cell phone or
other wireless communication device by the operator of a motor vehicle moving through
a school crossing zone illegal, with some exceptions; and (2) mandate that a city send 50
percent of the fines collected under the new law to the state comptroller at the end of the
fiscal year, to be deposited in the foundation school fund. Status – Left pending in
Transportation Committee
H.B. 220 (Menendez) – Cell Phone Ban: would make the use of wireless
communication devices while operating a motor vehicle a class C misdemeanor, subject
to certain exceptions. Status – Left pending in Transportation Committee
H.B. 356 (Quintanilla) – Cell Phone Ban: would double the fine for certain traffic
violations in cases where the person who committed the offense was using a wireless
communication device at the time. Status – Left pending in Transportation Committee
H.B. 438 (Lucio) – Cell Phone Ban: would prohibit a driver from using a cell phone
while driving, except for uses in connection with the official duties of emergency
response personnel and police. Status – Left pending in Transportation Committee
H.B. 758 (Martinez Fischer) – Cell Phone Ban: would prohibit a driver from using a cell
phone to read, write, or send a text message while driving, except for uses in connection with the
official duties of emergency response personnel and police. Status – Left pending in
Transportation Committee
H.B. 1158 (Truitt) – Cell Phones: would double the fine for certain traffic violations in cases
where the person who committed the offense was using a wireless communication device
without the use of a hands-free device at the time of the offense. Status – Left pending in
Transportation Committee
H.B. 1179 (Chavez) – Cell Phone Ban: would prohibit a driver from using a cell phone to read,
write, or send a text message while operating a motor vehicle, unless the vehicle is stopped.
Status – Left pending in Transportation Committee
H.B. 1206 (Vo) – Cell Phone Ban: would: (1) prohibit a driver from using a cell phone while
driving unless the vehicle is stopped or the cell phone is used with a hands-free device; (2) create
affirmative defenses for those situations in which the cell phone was being used in an
emergency; and (3) provide that the prohibition does not apply to uses in connection with the
official duties of emergency response personnel and police. Status – Referred to
Transportation Committee
H.B. 1207 (Vo) – Cell Phone Ban: would prohibit a person from reading, writing, or sending a
text message while operating a motor vehicle, bicycle, or electric personal assistive mobility
device. Status – Referred to Transportation Committee
H.B. 1267 (Turner) – Cell Phones: would prohibit a driver from using a wireless
communication device to read, write, or send a text message unless the vehicle is stopped. (This
bill is identical to H.B. 1179 by Chavez.) Status – Left pending in Transportation Committee
H.B. 1649 (Menendez) – Cell Phones: would: (1) prohibit a person under 18 years of age from
operating a motor vehicle while using a wireless communications device; (2) prohibit a person
under 17 years of age from operating a moped or motorcycle while using a wireless
communications device; (3) enhance the penalty for such an offense when the violation is
committed within a school zone; and (4) create an affirmative defense to these offenses in the
case of certain emergencies. Status – Referred to Transportation Committee
H.B. 1880 (Pierson) – Cell Phone Ban: would double the fine for certain traffic violations in
cases where the person who committed the offense was using a wireless communication device
to read, write, or send a text message. Status – Referred to Transportation Committee
H.B. 3027 (Coleman) – Cell Phone Ban: would prohibit the use of a cell phone without a
hands-free device while operating a motor vehicle, subject to certain exceptions. Status –
Referred to Transportation Committee
S.B. 51 (Zaffirini) – Text Messaging: would prohibit the use of a wireless
communication device to read, write, or send a text message while operating a motor
vehicle, subject to certain exceptions. Status – Referred to Transportation and Homeland
Security Committee
S.B. 582 (Wentworth) – Cell Phones: would prohibit the use of a cell phone while operating a
motor vehicle without a hands-free device. Status – Referred to Transportation and
Homeland Security Committee
S.B. 772 (Williams) – Cell Phones Bans: would prohibit drivers under the age of eighteen from
using a wireless communication device while operating a motor vehicle. Status – Referred to
Transportation and Homeland Security Committee
6. FUTURE AGENDA ITEMS: Any Council member may request at a workshop
and / or Council meeting, under “Future Agenda Item Requests”, an agenda item
for a future Council meeting. The Council Member making the request will
contact the Town Manager with the requested item and the Town Manager will
list it on the agenda. At the meeting, the requesting Council Member will explain
the item, the need for Council discussion of the item, the item’s relationship to the
Council’s strategic priorities, and the amount of estimated staff time necessary to
prepare for Council discussion. If the requesting Council Member receives a
second, the Town Manager will place the item on the Council agenda calendar
allowing for adequate time for staff preparation on the agenda item.
- None
Town of
Westlake
Item # 6 –
Future Agenda
Items
7. EXECUTIVE SESSION:
The Council will conduct a closed session under Texas Government Code for the
following:
A. Pursuant to Section 551.074(a)(1) of the Texas Government Code to deliberate
the evaluation and duties of public officers: The Town Secretary
Town of
Westlake
Item # 7 –
Executive Session
Town of
Westlake
Item # 8 – Reconvene
Meeting
Town of
Westlake
Item # 9 –
Adjournment
Back up material has not
been provided for this item.