HomeMy WebLinkAbout2012-13 Budget Retreat - 06.04.12 FINAL
Westlake Academy 2012-13 Working Draft Budget
Holding to the Vision, Rising to the Challenge
Table of Contents
I. Vision, Values, and Mission (Desired Outcomes) 1
II. Memo from Superintendent 2 – 3
III. Enrollment Information 4 – 7
Figure 1 - WA Student Enrollment ........................................................................................................................ 4
Figure 2 - % of Students Residing in Westlake ...................................................................................................... 4
Figure 3 - 2012 WA Student Census ...................................................................................................................... 5
Table 1 – Projected Student Census FY 2012-2013 .............................................................................................. 6
Figure 4 - 2012-13 Estimated Number of Students per Grade ............................................................................. 7
Figure 5 - Waiting List Over Time .......................................................................................................................... 7
IV. Revenues & Expenditures 8 – 17
Table 2 – WA Proposed FY 2012-13 Budget & Five Year Forecast........................................................................ 8
Figure 6 - Average Funding Comparison ............................................................................................................. 10
Figure 7 - Average State Funding per Student .................................................................................................... 10
Figure 8 - Blacksmith Annual Program Contributions ......................................................................................... 11
Figure 9 - Revenues by Dollar ............................................................................................................................. 11
Figure 10 - Revenues by Percentage ................................................................................................................... 12
WA Compensation Adjustment History .............................................................................................................. 12
Figure 11 - WA Position Summary ...................................................................................................................... 13
Table 3 - FY 2011-12 Salary Schedule Comparison ............................................................................................. 14
Figure 12 - FY 2011-12 ISD Salary Scale Medians ............................................................................................... 15
Figure 13 - FY 2011-12 ISD Salary Scale Averages ............................................................................................... 15
Table 4 - FY 2012-13 Median Salary Comparisons .............................................................................................. 16
Figure 14 - FY 2012-13 Salary Scale Adjustment Costs ....................................................................................... 17
Table 5 - 2012-13 Service Level Adjustment Summary ...................................................................................... 18
Figure 15 – Total GF Expenditures per Student (Including Debt Service) ........................................................... 19
Figure 16 - General Fund Operating Revenues & Expenditures / Student ......................................................... 19
Table 6 - WA FY 2011-12 Local Grants ................................................................................................................ 20
Table 7 - Proposed FY 2012-13 Local Grants ...................................................................................................... 21
Indirect & Direct Cost Information ..................................................................................................................... 21
V. Financial Policies 22 – 39
Town of Westlake Municipal Financial Policies .................................................................................................. 22
Westlake Academy Financial Policies ................................................................................................................. 32
VI. Municipal Five-year Financial Forecast 40 – 41
VII. Strategic Plan
Balanced Scorecard Performance Measures .............................................................................................. 11 – 13
Dashboard Reports ..................................................................................................................................... 14 – 17
1
Vision, Values, Mission & Desired Outcomes
Westlake Academy is a public charter school offering the International Baccalaureate (IB) curriculum.
Founded in 2003, with a mission to achieve academic excellence and develop life-long learners who become
well-balanced, responsible global citizens, Westlake Academy is the first and only municipally owned school
in the state to receive a charter designation. Westlake Academy is the fifth school of only 15 in the United
States, and the only public school, to offer the full IB curriculum for grades K-12.
Vision
“Westlake Academy inspires students to achieve their highest individual potential
in a nurturing environment that fosters the traits found in the IB learner profile.”
~ Inquirers, Knowledgeable, Thinkers, Communicators, Principled,
Open-minded, Caring, Risk-takers, Balanced, and Reflective ~
Values
Maximizing Personal Development
Academic Excellence
Respect for Self and Others
Personal Responsibility
Compassion and Understanding
Mission
“Westlake Academy is an IB World School whose mission is to provide students with an internationally
minded education of the highest quality, so they are well-balanced and respectful life-long learners.”
Desired Outcomes
High Student Achievement
Strong Parent & Community Connections
Financial Stewardship & Sustainability
Student Engagement-Extracurricular Activities
Effective Educators & Staff
2
MEMORANDUM
Date: June 1, 2012
TO: Honorable President and Board of Trustees
FROM: Tom Brymer, Town Manager/Superintendent
SUBJECT: Transmittal of Westlake Academy FY 2012-13 Proposed Budget Work Copy
Two fiscal years ago, the Board indicated they would prefer to have earlier involvement in the
budget process prior to its consideration in August just before the start of the next fiscal year on
September 1st.
In keeping with that directive, a budget retreat has been scheduled for this coming Thursday, June
7, 2012. The retreat’s purpose is to review the proposed budget and provide the Board with the
opportunity for input and to give direction to Staff prior to the Board’s August meeting at which time it
is scheduled for your consideration for adoption. Staff has prepared information in this notebook to
assist and facilitate the Board’s deliberations on the FY 12-13 Westlake Academy Proposed
Operating Budget.
We continue to utilize a budget theme to help staff and the board focus on the main issue or
issues a particular budget is facing. The current fiscal year, FY 11-12, marked the first fiscal year
of the State’s new biennium where State public education funding was reduced (by approximately
5%). As a result, the Westlake Academy budget theme for FY 11-12 was “Continued Excellence in
the Face of Change”. Upcoming FY12-13 is the second fiscal year of the biennium where the State
further reduced funding to Texas public schools (another approximate 3%). This continues to have
a major impact on all public schools, and Westlake Academy is no exception. Consequently, this
year’s budget theme is “Holding to the Vision, Rising to the Challenge”.
This notebook is organized into the following sections:
• Our vision, values, and mission statements
• Enrollment Information
• Revenues & Expenditures Information
• Financial Policies
• Strategic Plan
Several trends are:
• Enrollment growth
• Further State funding reductions
• Need for additional operating funding from the Westlake Academy Foundation
3
• Costs resulting from new teacher recruitment and new positions
• Maintaining an adequate fund balance in light of the uncertainty of any future increase in
State funding, and the pending legal challenges to the State funding formula
• Discontinuing the indirect cost transfer from the WA operating budget to the municipal
general fund
It should be noted that this budget does not address any capital needs concerning WA facilities.
Currently, a study commissioned by the Board, is underway by an architectural firm to create a long-
term facilities plan for the Academy. That study is on schedule, but is not yet ready for presentation.
This proposed ‘12-13 budget is summarized as follows (see the 5 year forecast on page 9 of your
notebook for details):
Overall Cost Summary Estimated
FY 2011-12
Proposed
FY 2012-13
Proposed Operating Expenditures $ 5,171,301 $ 5,090,592
Proposed FY 2012-13 WAF Grant Expenditures -0- 339,700
Sub-total 5, 171,301 5,430,292
Annual Debt Service Payment (paid from Municipal budget) 1,498,528 1,498,529
Grand Total All Costs $ 6,669,829 $ 6,928,821
On behalf of the Staff, we would like thank the Board in advance for their time, effort, and input on
the Proposed FY 12-13 Budget. Working as a team, we can hold to the vision and rise to the
challenge before us.
FY
03/04
FY
04/05
FY
05/06
FY
06/07
FY
07/08
FY
08/09
FY
09/10
FY
10/11
FY
11/12
Est.
FY
12/13Est.
FY
13/14Est.
FY
14/15Est.
FY
15/16Est.
FY
16/17Est.
Revenues 1.09M 1.83M 2.41M 2.88M 3.17M 4.28M 4.61M 5.24M 5.15M 5.72M 5.39M 5.39M 5.4M 5.41M
Expenditures 1.07M 1.61M 2.21M 2.62M 3.23M 3.92M 4.52M 5.33M 5.17M 5.43M 5.53M 5.64M 5.75M 5.86M
Fund Balance 12K 232K 428K 692K 634K 754K 711K 567K 865K 1.14M 976K 715K 352K -115K
$0
$1
$2
$3
$4
$5
$6
$7
Mi
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i
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WA Program Growth
(Revenue, Expenditure & Fund Balance)
4
Enrollment Information
Figure 1 - WA Student Enrollment
The enrollment at the Academy has been increasing due to the addition of new grade levels through FY 2009-
10. The additional increases in enrollment in the subsequent years are related to Board decisions to expand
the total number of students per class to 20 and the addition of a third section of 20 students per grade in
grades 7 – 11 in FY 2011-12 to provide for additional subject classes in the secondary grades.
Figure 2 - % of Students Residing in Westlake
Over 40 new Westlake residents have enrolled for FY 2012-13 which is a three percent (3%) increase over last
fiscal year and a reversal of a three year declining trend, starting in FY 2008-09. The primary reason for the
decline in the Westlake resident student ratio was due to increased enrollment in each class (20 students)
and the introduction of a third section to each of the secondary grades.
195
264 324 346 379 417
491 530
610 675
0
100
200
300
400
500
600
700
800
FY 03/04
G1-6
FY 04/05
K-7
FY 05/06
K-8
FY 06/07
K-9
FY 07/08
K-10
FY 08/09
K-11
FY 09/10
K-12
FY 10/11
K-12
FY 11/12
K-12
FY 12/13
K-12
WA Student Enrollment
69% 68% 70% 73% 70%
31% 32% 30% 27% 30%
0%
20%
40%
60%
80%
100%
2008-09 2009-10 2010-11 2011-12 2012-13
% of Students Residing in Westlake
Secondary Boundary Westlake Residents
5
Figure 3 - 2012 WA Student Census
In FY2011-12, Westlake residents made up approximately 27% of the Academy’s total student population.
The remaining seats were filled by Keller ISD (44%), Northwest ISD (14%), Carroll ISD (6%), and Other ISDs
(9%). A detailed breakdown of the projected student census data for the next school year FY2012-13 can be
seen in Table 1 on the next page.
KISD
Westlake
NWISD
Carroll Other
0%
20%
40%
60%
80%
100%
First Six Weeks Second Six Weeks Third Six Weeks Fourth Six Weeks Fifth Six Weeks
FY 2011-12 WA Student Census
6
Table 1 – Projected Student Census FY 2012-2013
Stage-Estates Paige-
Grade Total No. of % of No. of % of No. of % of No. of % of No. of % of No. of % of No. of % of No. of % of coach of Mahotea brook
Level Students Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Stud.Glenwyck Vaquero Hills Westlake Boone Farms Other
K 42 23 55%14 33%22 52%3 7%3 7%1 2%2 5%0 0%3 11 2 1 0 0 6
G1 40 15 38%7 18%23 58%7 18%3 8%2 5%4 10%0 0%5 6 2 1 0 0 1
G2 45 14 31%7 16%27 60%6 13%5 11%2 4%1 2%1 2%4 5 0 3 0 0 2
G3 43 19 44%9 21%24 56%7 16%3 7%13 30%0 0%0 0%8 5 3 0 2 0 1
G4 48 17 35%6 13%31 65%4 8%7 15%7 15%3 6%1 2%3 11 0 2 0 0 1
G5 44 14 32%8 18%28 64%5 11%3 7%12 27%3 7%1 2%6 5 0 1 0 0 2
G6 61 25 41%12 20%38 62%7 11%4 7%1 2%3 5%0 0%10 11 0 1 1 0 2
G7 62 17 27%9 15%40 65%9 15%4 6%9 15%4 6%1 2%4 8 1 0 2 0 2
G8 63 18 29%10 16%40 63%9 14%4 6%0 0%0 0%0 0%4 8 1 1 3 0 1
G9 63 12 19%9 14%42 67%7 11%5 8%0 0%1 2%0 0%3 5 2 0 2 0 0
G10 63 12 19%13 21%43 68%5 8%2 3%0 0%1 2%1 2%6 2 0 0 0 1 3
G11 61 10 16%8 13%37 61%9 15%7 11%0 0%1 2%0 0%2 5 1 1 0 0 1
G12 40 8 20%6 15%25 63%8 20%1 3%0 0%0 0%0 0%0 4 1 1 1 0 1
Totals 675 204 30%118 17%420 62%86 13%51 8%47 7%23 3%5 1%58 86 13 12 11 1 23
Due to Town Westlake Residents by neighborhood
Residents ISD ISD ISD Districts on Wait List Employee Employee
PROJECTED WESTLAKE ACADEMY STUDENT CENSUS - FY 2012-2013
Primary Secondary Boundaries
Westlake Carroll Keller Northwest Other Siblings Due to School
7
Figure 4 - 2012-13 Estimated Number of Students per Grade
These enrollment numbers reflect the total number of students currently enrolled and registered for the
upcoming 2012-13 school year. In the last week of May, we have been contacted by two additional Westlake
families expressing interest in attending the Academy which are not reflected in the numbers above.
Kindergarten, and second through eleventh grade are currently over populated. Keep in mind that usually
not all students that attend WA actually show up when the school year begins.
Figure 5 - Waiting List over Time
0 10 20 30 40 50 60 70
KG
G1
G2
G3
G4
G5
G6
G7
G8
G9
G10
G11
G12
2012-13 Estimated Number of
Students / Grade
746 845
1021
1241 1265
844 705
1027
2079
0
500
1000
1500
2000
2500
FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 12-13
FY 2012-13 Students on WA Waiting List
Class Sizes Exceed
20 Students
8
Revenues & Expenditures
Table 2 – WA FY 2012-13 Proposed Budget & Five Year Forecast
Audited Audited Adopted Estimate Proposed Projected Projected Projected Projected
FY 09/10 FY 10/11 FY 11/12 FY 11/12 FY 12/13 Variance FY 13/14 FY 14/15 FY 15/16 FY 16/17
1 GENERAL FUND BEG. BALANCE $ 504,654 $ 767,491 914,661$ 914,661$ $ 879,702 $ (34,959) $ 1,151,866 $ 990,449 $ 729,946 $ 366,841
2 REVENUES
3 Local Revenues
4 WAF Salary Reimbursement 59,056 65,003 31,662 33,092 54,594 21,502 55,685.88 55,686 56,800 56,800
5 WAF Seed Money Grant - - 339,700 339,700
6 Other Local Revenue 42,287 28,035 15,000 23,774 25,000 1,226 24,487 25,750 25,222 26,523
7 WAF Blacksmith 431,409 524,038 627,000 680,000 720,000 40,000 720,000 720,000 720,000 720,000
8 Interest Earned 908 2,295 1,500 2,200 2,500 300 1,759 2,304 1,981 1,460
9 Food Services - 2,000 3,000 3,000 3,000 - 3,090 3,183 3,278 3,377
10 Donations 10,500 3,950 - - - - - - - -
11 Athletic Activities 67,200 49,198 37,980 37,980 33,500 (4,480) 39,000 39,000 39,000 39,000
12 Transportation/Parking - 7,996 37,840 23,315 37,840 14,525 38,597 39,369 40,156 40,959
13 Total Local Revenues 611,360 682,515 753,982 803,361 1,216,134 412,773 882,619 885,291 886,436 888,118
15 State Revenue
16 TEA - FSP Funds 3,485,909 3,744,757 4,281,649 4,109,068 4,247,160 138,092 4,247,160 4,247,160 4,247,160 4,247,160
17 TRS On-behalf/Medicare Part B 183,454 181,301 208,437 236,754 252,003 15,249 257,043 262,183 267,427 272,776
18 Total State Revenues 3,669,363 3,926,058 4,490,086 4,345,822 4,499,162 153,340 4,504,202 4,509,343 4,514,587 4,519,935
19 TOTAL REVENUES 4,280,723 4,608,573 5,244,068 5,149,182 5,715,296 566,114 5,386,821 5,394,634 5,401,023 5,408,053
21 EXPENDITURES by FUNCTION
Five Year Financial Forecast - FY 2011-12 thru FY 2015-16
Westlake Academy - General Fund
22 Function 11 - Instructional 2,219,605 2,493,252 2,839,281 2,846,697 3,187,968 341,271
23 Function 12 - Resources & Media 87,511 73,398 90,134 90,027 137,056 47,029
24 Function 13 - Curriculum & Staff Development 48,757 49,351 87,800 27,667 78,100 50,433
25 Function 21 - Instructional Leadership 97,623 121,795 131,742 170,094 92,857 (77,237)
26 Function 23 - School Leadership 286,307 294,326 333,805 323,721 331,856 8,135
27 Function 31 - Guidance & Counseling 159,850 165,245 220,628 209,652 228,713 19,061
28 Function 33 - Health Services 56,963 53,513 59,700 58,730 58,324 (406)
29 Function 35 - Food Services 8,135 7,275 9,657 9,095 8,394 (701)
9
Table 3 – WA FY 2012-13 Proposed Budget & Five Year Forecast
Audited Audited Adopted Estimate Proposed Projected Projected Projected Projected
FY 09/10 FY 10/11 FY 11/12 FY 11/12 FY 12/13 Variance FY 13/14 FY 14/15 FY 15/16 FY 16/17
Five Year Financial Forecast - FY 2011-12 thru FY 2015-16
Westlake Academy - General Fund
30 Function 36 - Co/Extracurricular Activities 54,825 94,713 122,726 103,695 123,253 19,558
31 Function 41 - Administrative 318,624 283,179 601,746 486,416 301,394 (185,022)
32 Function 51 - Maintenance & Operations 265,969 525,273 587,169 587,169 602,111 14,942
33 Function 53 - Data Processing 157,923 154,962 159,874 159,874 164,436 4,562
34 Function 61 - Community Services 59,592 69,739 66,244 79,586 91,890 12,304
35 Function 71 - Debt Service 41,495 - - - - -
36 Function 81 - Facility Acquisition/Construction - 132,086 23,940 18,878 23,940 5,062
37 TOTAL EXPENDITURES 3,863,178 4,518,107 5,334,446 5,171,301 5,430,292 258,991 - - - -
39 EXPENDITURES by OBJECT
40 Object Code 61XX - Salaries 2,951,964 3,292,938 3,772,080 3,945,894 4,200,042 254,148 4,284,043 4,369,724 4,457,118 4,546,261
41 Object Code 62XX - Prof. Contracted Services 480,955 791,907 962,025 844,935 703,290 (141,645) 717,356 731,703 746,337 761,264
42 Object Code 63XX - Supplies & Materials 244,945 221,871 258,447 208,790 250,186 41,396 253,939 257,748 261,614 265,538
43 Object Code 64XX - Other Operating Costs 198,527 211,391 341,894 171,681 276,774 105,093 279,542 282,337 285,160.53 288,012
44 Object Code 65XX - Debt Service 41,495 - - - - - - - - -
46 TOTAL EXPENDITURES 3,917,886 4,518,107 5,334,446 5,171,301 5,430,292 258,991 5,534,879 5,641,512 5,750,230 5,861,075
48 OTHER RESOURCES/USES
49 Other Resources - 659,704 36,967 36,967 36,967 - 38,460 39,230 40,014 40,014
50 Other Uses 100,000 603,000 49,807 49,807 49,807 - 51,819 52,856 53,913 53,913
51 Other uses - Insurance - - - 56,704 - (56,704) - - - -
52 Excess Revenues Over (Under) Expenditures 262,837 147,170 (103,218) (34,959) 272,164 (161,417) (260,503) (363,105) (466,920)
54 GENERAL FUND ENDING BALANCE 767,491 914,661 582,158 879,702 1,151,866 272,164 990,449 729,946 366,841 (100,079)
55 Assigned - Technology/FFE - 100,000 - - - - - - - -
56 Assigned - Uniform/Equipment Replacement 13,718 15,810 15,000 15,000 14,838 (162) 14,838 14,838 14,838 14,838
59 ENDING FUND BALANCE (Unassigned)753,772 710,551 567,158 864,702 1,137,028 272,002 975,611 715,108 352,003 (114,917)
61 # of Operating Days (365)70 57 39 61 76 64 46 22 (7)
63 Students Enrolled
64 Primary 275 296 309 309 300 300 300 300 300
65 Secondary 216 234 301 301 330 330 330 330 330
66 Total Students Enrolled 491 530 610 610 650 650 650 650 650
67 TEA Funding/Student 7,099.61$ 7,019.10$ 6,736.18$ 6,534.09$ 6,534.09$ 6,534.09$ 6,534.09$ 6,534.09$
10
Figure 6 - Average Funding Comparison
On average, both nationally and at a state level, the long-term trend has been an approximate four percent
(4%) increase in student spending/funding on an annual basis. Nationally the trend in funding education has
slowed but continues to be positive. Texas has decreased education spending by eight percent (8%) over the
last two years.
Figure 7 - Average State Funding per Student
As can be seen in Figure 6, the funding gap between state and national averages and Westlake Academy are
widening. Funding levels peaked in FY 2009-10 and have been declining in each consecutive year. It is
unclear what the next legislative session will do, but WA will see an estimated three percent (3%) decline in
FY 2012-13 in addition to the 5% reduction it received in FY2011-12.
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12
Estimated
12/13
Estimated
Average Funding Comparison / Student
WA Mean Texas Mean National Mean
$4,809
$5,729 $5,624
$6,530 $6,623 $7,057 $7,279 $7,073 $6,736 $6,534
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13
Estimated
Average State Funding / Student
195 264 324 346 379 417 491 530 610 675 Enrollment
11
Figure 8 - Blacksmith Annual Program Contributions
The Blacksmith Annual Program contributions have increased each year since FY 2009-10. A sizable increase
in student population and an intense focus by the Westlake Academy Foundation has increased the total
contributions to record levels in the last two fiscal years. The Academy is becoming more dependent upon
the Westlake Academy Foundation for operating dollars as the Texas state funding declines.
Figure 9 - Revenues by Dollar
Westlake Academy revenue streams consist of two primary sources, first, the Foundation State Program, and
second, the Blacksmith Annual Program. Funding sources and ratios have been fairly consistent from the
inception of the Academy. It is unlikely that new revenue streams will be available to the Academy in the
near future.
FY
04/05
FY
05/06
FY
06/07
FY
07/08
FY
08/09
FY
09/10
FY
10/11
FY
11/12
Est.
FY
12/13
Total Contribution 239,44 335,72 388,37 407,01 394,12 431,40 524,03 680,00 720,00
Avg / Student 907 1,036 1,122 1,074 945 879 1,000 1,097 1,046
$- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000
$0
$100
$200
$300
$400
$500
$600
$700
$800
To
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t
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i
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Th
o
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a
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s
Blacksmith Annual Program Contributions
$0
$1
$2
$3
$4
$5
$6
FY 07/08
Audited
FY 08/09
Audited
FY 09/10
Audited
FY 10/11
Audited
FY 11/12
Estimated
FY 12/13
Proposed
Mi
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s
Revenues by Dollar
All Other Local
Athletics
Transportation
Lunchroom Revenues
Investment Earnings
WAF Salary Reimbursement
Blacksmith Apprentice Program
State Revenues
12
Figure 10 - Revenues by Percentage
The Foundation State Program (FSP) is responsible for approximately 84% of the Academy’s annual General
Fund operating budget. The Westlake Academy Foundation has taken an increasingly larger role in
supplementing the General Fund over the last two fiscal years reaching approximately 13% of the total
operating budget with the balance coming from a variety of local operating sources. In addition, the
Westlake Academy Foundation provides additional grant funding for professional development, technology,
teacher recruitment and retention, and project specific activities that would not be possible without their
support.
Compensation Adjustment History
Westlake Academy’s teacher salary scale is adopted annually by the Board of Trustees during the budget
process. Board policy has established the goal of maintaining a salary scale that is within 3% of the median of
surrounding school districts. Each year, staff presents recommended adjustments to the salary scale to help
maintain a competitive pay plan that meets the goals of the Board Policy. For FY 12-13, staff is
recommending a 1% scale adjustment, and it is projected that Westlake Academy will be 2.25% below the
median of surrounding districts. Average annual increases (calculated by scale adjustment plus step
increase) is used for adjustment of non-contract employee salaries. Adjustments to our salary scale in prior
years are as follows:
• FY 09-10: 1.4% state mandated stimulus increase, plus 0.5% local adjustment. Average employee
increase: 2.4%
• FY 10-11: 2% pay increases given across the board (total of scale adjustment plus step increase)
• FY 11-12: Salary Scale frozen, average employee step increase: 0.5%
• Recommended 12-13: 1% salary scale adjustment. Average employee increase: 1.5%
75%
80%
85%
90%
95%
100%
FY 07/08
Audited
FY 08/09
Audited
FY 09/10
Audited
FY 10/11
Audited
FY 11/12
Estimated
FY 12/13
Proposed
Revenues by Percentage
All Other Local
Athletics
Transportation
Lunchroom Revenues
Investment Earnings
WAF Salary Reimbursement
Blacksmith Apprentice Program
State Revenues
13
Figure 11 - WA Position Summary
Fiscal Year
FY 04/05
Actual
FY 05/06
Actual
FY 06/07
Actual
FY 07/08
Actual
FY 08/09
Actual
FY 09/10
Actual
FY 10/11
Actual
FY 11/12
Actual
FY 12/13
Proposed
Classes Served K-7 K-8 K-9 K-10 K-11 K-12 K-12 K-12 K-12
Head of School 1.00 1.00 1.00 1.00 1.00 - - - -
Primary Principal - - - 1.00 1.00 1.00 1.00 1.00 1.00
Secondary Principal - - - - 0.50 1.00 1.00 1.00 1.00
Head Secondary Teacher - - - - - - - - 0.50
Admin Coordinator - - - - 1.00 1.00 1.00 1.00 1.00
PYP Coordinator 0.30 0.50 0.50 1.00 0.50 0.60 0.60 0.60 1.00
MYP Coordinator - 0.40 0.40 0.40 0.50 0.50 1.00 0.50 0.67
DP Coordinator - - - - 0.50 0.50 0.40 0.40 0.40
Primary - K 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Primary 1 2.00 2.00 2.00 2.00 2.00 1.70 2.00 2.00 2.00
Primary 2 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Primary 3 2.00 3.00 2.00 2.60 2.00 2.00 2.00 2.00 2.00
Primary 4 1.70 2.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Primary 5 2.00 2.00 2.00 2.00 2.00 2.00 3.00 2.00 2.00
Primary 6 2.00 2.00 2.00 2.00 2.00 1.80 2.00 3.00 3.00
Primary - PE 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50
Primary - Reading Spec.- - - - - 0.40 1.00 0.40 1.00
Primary - Art 0.80 0.60 0.80 0.80 0.80 0.90 1.00 1.00 1.00
Primary - Music 0.40 0.80 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Primary - Spanish 1.00 1.00 1.00 1.00 1.00 1.20 1.00 1.60 2.00
Primary - IT - - - - - - 0.40 0.40 -
Theater Arts - - - - - - - 1.00 1.00
Special Education - 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
Secondary - Art - 0.60 0.60 1.00 0.80 1.00 0.85 0.85 0.85
Secondary English - 1.00 2.00 2.00 2.00 3.00 3.00 3.50 3.33
Secondary - Humanities 1.00 0.60 0.60 1.60 2.00 3.10 3.00 4.00 4.50
Secondary - IT - - 0.30 0.30 0.30 0.30 0.20 1.00 -
Secondary - Math 0.40 1.00 1.50 2.00 1.75 2.00 2.00 3.00 3.00
Secondary - Science 0.50 1.00 1.50 2.00 2.50 3.25 3.60 3.60 3.60
Secondary - Foreign Lang.0.40 0.50 1.00 1.00 1.50 2.00 2.60 2.34 3.34
Secondary - PE 0.25 0.40 1.00 1.00 1.25 0.72 1.50 1.50 1.50
Secondary - Reading Spec.- - - - - - - 0.25 0.66
Secondary - CAS - - - 0.60 - 0.25 - - -
Strings Staff - - - - - 0.25 0.33 0.33 0.33
Librarian/Aide 0.40 1.00 1.00 1.00 1.00 1.00 1.00 2.00 1.00
IT Integration - - - - - - - - 1.00
Counselors 0.50 1.00 1.00 1.50 2.00 2.00 2.00 2.00 2.00
Athletic Director - - - - - 0.75 - - -
Teaching Aides 0.60 - - - 2.50 3.70 3.66 4.50 4.50
Nurse 0.50 0.50 0.50 0.50 1.00 1.00 1.00 1.00 1.00
Facilities Technician - - - - - - - 1.00 1.00
Teaching Intern - - - - - - - 0.75 0.50
IT/Network Technicians - - 0.70 0.70 0.70 1.70 1.80 1.80 1.80
Asst. to Head of School 1.00 1.00 1.00 1.00 - - - - -
Registrar 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Office Aide - 0.60 0.60 1.60 2.60 3.00 3.00 3.00 3.00
Lunchroom Personnel 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40
Day Porter - - - - - 0.60 0.60 0.60 0.60
Total Positions 25.15 32.40 36.40 43.00 48.10 55.62 59.44 66.82 68.98
Position Summary
14
Table 4 - FY 2011-12 Salary Schedule Comparison
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0 45,044 45,876 48,250 45,700 45,405 46,100 49,250 46,000 44,500 47,690 46,530 46,000 -3.2%-2.1%
1 45,490 46,261 48,500 45,900 46,570 46,100 49,260 46,143 44,852 48,221 46,867 46,261 -2.9%-1.7%
2 46,169 46,782 48,750 46,247 47,735 46,100 49,274 46,693 45,295 48,753 47,292 46,782 -2.4%-1.3%
3 46,481 47,307 49,130 46,597 47,975 46,247 49,284 47,298 45,576 49,284 47,633 47,307 -2.4%-1.7%
4 47,087 47,833 49,600 47,105 48,481 46,391 49,306 47,908 45,983 49,815 48,047 47,908 -2.0%-1.7%
5 47,283 48,362 49,980 47,426 48,813 46,564 49,415 48,303 46,080 50,347 48,366 48,362 -2.2%-2.2%
6 48,073 48,885 50,180 47,737 49,347 46,812 49,764 48,819 46,561 50,878 48,776 48,885 -1.4%-1.7%
7 48,482 49,211 50,380 48,058 49,883 46,998 50,730 49,363 46,810 51,409 49,205 49,363 -1.5%-1.8%
8 48,841 49,530 50,580 48,380 50,217 47,300 51,026 49,663 47,008 51,940 49,516 49,663 -1.4%-1.7%
9 49,143 49,848 50,780 48,701 50,543 47,491 51,189 49,963 47,206 52,472 49,799 49,963 -1.3%-1.6%
10 49,306 50,169 50,980 49,022 50,869 47,662 51,352 50,263 47,472 53,003 50,088 50,263 -1.6%-1.9%
11 49,682 50,488 51,180 49,344 51,193 47,890 51,496 50,563 48,128 53,534 50,424 50,563 -1.5%-1.7%
12 50,093 50,995 51,380 49,665 51,519 48,014 52,022 50,863 48,921 54,066 50,827 50,995 -1.4%-1.8%
13 50,350 51,506 51,580 49,986 51,954 48,344 52,451 51,213 49,329 54,597 51,218 51,506 -1.7%-2.2%
14 50,533 52,018 51,780 50,308 52,286 48,468 53,200 51,527 49,729 55,128 51,605 51,780 -2.1%-2.4%
15 50,762 52,526 51,980 50,629 52,812 48,669 53,433 51,827 50,253 55,664 51,977 51,980 -2.3%-2.3%
16 51,476 53,038 52,180 50,951 53,423 49,542 53,857 52,613 50,789 56,543 52,548 52,613 -2.0%-2.2%
17 51,642 53,770 52,380 51,272 54,675 49,876 53,944 52,913 51,320 57,422 53,064 52,913 -2.7%-2.4%
18 51,921 54,511 52,580 51,599 54,948 50,844 54,775 53,513 51,982 58,300 53,672 53,513 -3.3%-3.0%
19 52,889 55,261 53,680 52,697 55,499 51,942 55,863 53,863 53,095 59,179 54,564 53,863 -3.1%-1.8%
20 53,880 56,009 54,740 53,454 56,770 52,911 56,783 54,388 54,030 60,058 55,460 54,740 -2.9%-1.6%
21 55,091 56,762 55,615 53,775 57,639 53,931 57,919 55,263 55,255 60,937 56,344 55,615 -2.2%-0.9%
22 56,000 57,605 56,415 54,756 59,504 54,814 58,939 56,138 56,375 61,816 57,374 56,415 -2.4%-0.7%
23 56,684 58,444 63,925 56,153 59,606 55,592 60,106 56,463 57,486 62,694 58,941 58,444 -3.8%-3.0%
24 57,115 59,280 57,306 60,040 56,580 60,417 57,163 58,402 63,573 59,095 58,841 -3.4%-2.9%
25 57,614 60,118 58,200 60,474 57,460 60,995 58,107 59,387 64,452 59,899 59,753 -3.8%-3.6%
26 59,391 60,960 58,675 60,903 58,344 61,703 58,777 60,285 65,331 60,622 60,594 -2.0%-2.0%
27 60,278 61,577 58,996 63,269 59,279 62,818 59,095 61,147 66,210 61,549 61,362 -2.1%-1.8%
28 60,906 62,182 59,318 63,561 60,164 63,917 59,764 61,979 67,088 62,247 62,081 -2.2%-1.9%
29 61,549 62,790 59,639 64,214 61,047 64,246 60,444 62,662 67,967 62,876 62,726 -2.1%-1.9%
30 61,652 63,394 59,960 64,682 61,930 64,555 61,107 63,217 68,846 63,461 63,306 -2.9%-2.6%
Average 52,287 53,655 51,939 51,857 54,349 51,271 54,945 52,775 51,971 57,007 53,545 53,366 -2.3%-2.0%
Median 50,762 52,526 51,280 50,629 52,812 48,669 53,433 51,827 50,253 55,664 51,977 51,980 -2.3%-2.3%
WA Scale Average: 52,287 District Scale Average:53,545 District Scale Median Average: 53,366
WA Scale Average to District Scale Average:-2.3%-2.0%
2011-2012 Salary Schedules
WA Scale to District Median Average:
15
Figure 12 - FY 2011-12 ISD Salary Scale Medians
Figure 13 - FY 2011-12 ISD Salary Scale Averages
16
Table 5 - FY 2012-13 Median Salary Comparisons
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0 45,044 46,000 -2.1%46,575 -3.3%45,269 -2.80%225 45,494 -2.32%450 45,719 -1.84%676
1 45,490 46,261 -1.7%46,839 -2.9%45,717 -2.40%227 45,945 -1.91%455 46,172 -1.42%682
2 46,169 46,782 -1.3%47,367 -2.5%46,399 -2.04%231 46,630 -1.55%462 46,861 -1.07%693
3 46,481 47,307 -1.7%47,898 -3.0%46,714 -2.47%232 46,946 -1.99%465 47,178 -1.50%697
4 47,087 47,908 -1.7%48,507 -2.9%47,322 -2.44%235 47,558 -1.96%471 47,793 -1.47%706
5 47,283 48,362 -2.2%48,967 -3.4%47,519 -2.96%236 47,756 -2.47%473 47,992 -1.99%709
6 48,073 48,885 -1.7%49,496 -2.9%48,313 -2.39%240 48,554 -1.90%481 48,794 -1.42%721
7 48,482 49,363 -1.8%49,980 -3.0%48,725 -2.51%242 48,967 -2.03%485 49,210 -1.54%727
8 48,841 49,663 -1.7%50,284 -2.9%49,086 -2.38%244 49,330 -1.90%488 49,574 -1.41%733
9 49,143 49,963 -1.6%50,588 -2.9%49,389 -2.37%246 49,635 -1.88%491 49,880 -1.40%737
10 49,306 50,263 -1.9%50,891 -3.1%49,552 -2.63%247 49,799 -2.15%493 50,045 -1.66%740
11 49,682 50,563 -1.7%51,195 -3.0%49,930 -2.47%248 50,179 -1.99%497 50,427 -1.50%745
12 50,093 50,995 -1.8%51,632 -3.0%50,344 -2.50%250 50,594 -2.01%501 50,845 -1.53%751
13 50,350 51,506 -2.2%52,150 -3.5%50,602 -2.97%252 50,853 -2.49%503 51,105 -2.00%755
14 50,533 51,780 -2.4%52,427 -3.6%50,785 -3.13%253 51,038 -2.65%505 51,291 -2.17%758
15 50,762 51,980 -2.3%52,630 -3.5%51,016 -3.07%254 51,270 -2.58%508 51,523 -2.10%761
16 51,476 52,613 -2.2%53,271 -3.4%51,733 -2.89%257 51,990 -2.40%515 52,248 -1.92%772
17 51,642 52,913 -2.4%53,574 -3.6%51,900 -3.13%258 52,158 -2.64%516 52,416 -2.16%775
18 51,921 53,513 -3.0%54,182 -4.2%52,180 -3.69%260 52,440 -3.22%519 52,699 -2.74%779
19 52,889 53,863 -1.8%54,536 -3.0%53,154 -2.54%264 53,418 -2.05%529 53,682 -1.57%793
20 53,880 54,740 -1.6%55,424 -2.8%54,149 -2.30%269 54,418 -1.81%539 54,688 -1.33%808
21 55,091 55,615 -0.9%56,310 -2.2%55,366 -1.68%275 55,641 -1.19%551 55,917 -0.70%826
22 56,000 56,415 -0.7%57,120 -2.0%56,280 -1.47%280 56,560 -0.98%560 56,840 -0.49%840
23 56,684 58,444 -3.0%59,175 -4.2%56,968 -3.73%283 57,251 -3.25%567 57,535 -2.77%850
24 57,115 58,841 -2.9%59,577 -4.1%57,400 -3.65%286 57,686 -3.17%571 57,971 -2.69%857
25 57,614 59,753 -3.6%60,499 -4.8%57,902 -4.29%288 58,190 -3.82%576 58,478 -3.34%864
26 59,391 60,594 -2.0%61,351 -3.2%59,688 -2.71%297 59,985 -2.23%594 60,282 -1.74%891
27 60,278 61,362 -1.8%62,129 -3.0%60,579 -2.49%301 60,881 -2.01%603 61,182 -1.52%904
28 60,906 62,081 -1.9%62,857 -3.1%61,211 -2.62%305 61,515 -2.13%609 61,820 -1.65%914
29 61,549 62,726 -1.9%63,510 -3.1%61,857 -2.60%308 62,165 -2.12%615 62,473 -1.63%923
30 61,652 63,306 -2.6%64,097 -3.8%61,960 -3.33%308 62,268 -2.85%617 62,577 -2.37%925
52,287 53,366 -2.00%54,033 -3.2%52,549 -2.73%261 52,810 -2.25%523 53,072 -1.76%784 Average
17
Figure 14 - FY 2012-13 Salary Scale Adjustment Costs
18
Table 6 - 2012-13 Service Level Adjustment Summary
Decrease Maintain New or
Expanded Maintain New or
Expanded
*ARRA Grant Funding Expiration (teachers)72,949 72,949
1 Membership Fees 8,680 8,680
2 Town Indirect Operating Costs (104,967) (104,967)
3 Lead Secondary Teacher 40,416 40,416
4 DP Humanities Teacher 46,495 46,495
5 French Teacher/Reading Specialist 53,609 53,609
6 PYP Reading Specialist 53,609 53,609
7 PYP PE Teaching Intern 20,600 20,600
8 SPED Coordinator Stipend 4,316 4,316
9 Summer Activities Coordinator 800 800
10 1% Salary Scale Adjustment 36,077 36,077
11 Athletic Director Stipend 1,079 1,079
12 AESOP 858 858
13 Bright Arrow Technology 320 320
14 Raptor V-Soft 1,502 1,502
15 Fire Sprinkler Repair & Maintenance 4,500 4,500
16 Security Maintenance / Monitor 2,100 2,100
17 ESC PEIMS 500 500
18 IB Exam Contribution (50%)12,000 12,000
19 G10 ISA Exams 2,520 2,520
Sub-total (104,967) 125,885 237,045 - - 257,963
International Teacher Stipend 36,000 (36,000)
1 Classroom Supplies (PYP, MYP, DP)58,047 (58,047)
2 Professional Development 85,000 (85,000)
3 Maintenance & Operations 141,500 (141,500)
4 PYP Math 2,600 (2,600)
5 PYP Music 750 (750)
6 PYP Counseling 400 (400)
7 PYP G4 3,760 (3,760)
8 PYP G5 215 (215)
9 PYP G6 1,600 (1,600)
10 DP Arts 1,421 (1,421)
11 MYP Technology 300 (300)
12 DP Spanish 1,240 (1,240)
13 DP Humanities 1,240 (1,240)
14 DP English 1,400 (1,400)
15 DP Science 3,027 (3,027)
16 DP Math 1,200 (1,200)
Sub-total - - - 303,700 - (339,700)
Total (104,967) 237,045 - 303,700 - (45,737)
*These expenditures are a reallocation of teaching salaries that were being paid by an ARRA grant which expired this year.
Ra
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k
In Operating Budget WAF Grant Funding
Service Level Adjustments Total
19
Figure 15 – Total GF Expenditures per Student (Including Debt Service)
The total expenditures per student increased each year through FY 2008-09 after which time it began to decline
through the current fiscal year. In FY 2011-12 the Academy received an unusually large amount of grant funds that
are not anticipated in future fiscal years. The declining trend is expected due to decreases in the primary funding
source for Westlake Academy, the State’s FSP.
Figure 16 - General Fund Operating Revenues & Expenditures / Student
$1
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FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12
Estimated
FY 12/13
Estimated
Th
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Expenditures per Student
195 Enrollment 264 324 346 379 417 491 530 610 675
$0
$1
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$3
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2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
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GF Operating Revenues & Expenditures
State Revenue Local Revenue (ie. Blacksmith)Expenditures
20
Table 7 - WA FY 2011-12 Local Grants
21
Table 8 - Proposed FY 2012-13 Local Grants
Description Amount
Prof. Dev. $ 57,000
IB Fees 28,000
Rosetta Stone 11,000
DP Programme - Supplies & Materials 40,200
MYP Programme - Supplies & Materials 7,000
PYP Programme - Supplies & Materials 19,000
Landscaping / Irrigation 55,500
Janitorial Services 55,000
WA Internet 15,000
Grounds Maintenance 16,000
International Teacher Stipend 36,000
Total $ 339,700
Indirect & Direct Cost Information
June 2010: Board Budget Retreat for FY 10-11 Budget
Board Direction at That Time:
• Class size of 20
• In FY 10-11, moved direct WA operating costs booked to municipal budget to WA operating
budget $243,213
• In FY 11-12, have WA operating budget pay municipal general fund for school’s indirect operating
costs. Budget $325,000 in WA operating budget for this expense. ($302,900 net of credits for 2
tech positions)
• Net effect, except for debt service costs, WA is on “full cost of service”
History
• Direct costs
FY 10-11 $243,213 (1st year of direct costs transferred to WA)
FY 11-12 $325,213
FY 12-13 $335,233
• Indirect Costs GROSS TECH CREDITS NET TRANSFER
FY 11-12 Budgeted $325,000 $-22,100 $306,900
FY 11-12 Transferred Thus Far $216,666 $-14,733 $201,933
FY 11-12 Recommended $216,666 $-14,733 $201,933
FY 12-13 Proposed $ -0- $-0- $-0-
• Policy Issue: We can continue to track WA’s indirect operating costs so we know what the “all-in”
operating costs are, but, given the State’s reductions and our need to preserve fund balance over
the next 5 years, should we continue to actually transfer this money from WA’s operating budget
to the municipal general fund (i.e. expense it to the WA operating budget)?
22
23
Financial Policies
Town of Westlake
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:
A. 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
B. 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:
A. Operating Budget: Prepare, conservatively estimate revenues, present, and adopt the Town’s annual operating plan.
B. 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.
C. 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.
D. 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.
E. 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.
F. 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.
G. 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.
H. Economic Development: Initiate where feasible, encourage, and participate in economic development efforts to create
job opportunities and strengthen the local tax base and economy
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I. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Town’s financial
performance and economic condition.
J. 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.
K. 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).
L. Capital Improvement Plan/Budget and Program: Multi-year planning, forecasting, preparation, and control of the
Town’s capital improvement plan/budget.
M. 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.
N. 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.
III. OPERATING BUDGET
A. 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.
B. 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.
C. 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.
D. 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.
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E. 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.
F. 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.
G. 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.
H. 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.
I. 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.
J. 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.
K. 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.
L. 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 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
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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:
• 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.
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
A. 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
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Town Council.
B. 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.)
C. 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.
D. 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.
E. 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.
F. 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.
G. 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.
H. 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
A. 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.
B. 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.
C Use of Fund Balance - Fund Balance will be targeted to only be used with Council approval and can be only be used for the
following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), 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. The
Council shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end,
to report such commitments in the balance sheet of the respective period, even though the amount may be determined
subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action.
The Council delegates the responsibility to assign funds to the Town Manager or his/her designee. The Council shall have
the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end.
The Council will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned
VII. DEBT MANAGEMENT
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A. 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.
B. 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.
C. 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 cannot be financed from either
current revenues or fund balance/retained earnings and to fund infrastructure improvements and additions.
D. 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.
E. 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.
F. 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.
G. 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.
H. 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.
I. Continuing Disclosure - The Town is committed to continuing disclosure of financial and pertinent credit information
relevant to the Town's outstanding securities.
J. 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
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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.
A. 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.
B. 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
A. 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.
B. 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.
C. 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
A. 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.
B. 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.
C. 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.
D. 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
A. 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.
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B. 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
A. 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.
B. 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 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.
C. 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.
D. 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.
E. 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
A. 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.
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B. 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.
C. 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.
D. 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.
E. 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 Maintenance Replacement Fund) for major maintenance/ replacement of street, building
roof, flooring, air conditioning, equipment, etc.
XVI. INTERNAL CONTROLS
A. 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.
B. 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
A. 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 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.
B. 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.
C. 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.
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D. 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.
E. 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.
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Westlake Academy
I. STATEMENT OF PURPOSE
The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a
long-term stable and positive financial condition. The watchwords of the Academy’s financial management include
integrity, prudent, 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 Superintendent or his designate
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.
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.
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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.
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 – A balanced budget is a budget with total expenditures not exceeding total revenues and monies
available in the fund balance within an individual fund.
Proposed Budget Content and Process – A proposed budget shall be prepared by the Superintendent or his
designate with the participation of the Academy’s Leadership Team, Finance Director and Academy staff, and then
submitted to the Superintendent for review. Following the Superintendent’s review, the proposed budget will be
presented to the Board for its consideration.
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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 each of the four segments of the
proposed budget and a public hearing to allow for citizen participation in the budget preparation process.
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 Annual Budget. The
adopted budget will be effective for the fiscal year beginning September 1.
Budget Amendments – The Superintendent or his designate and Finance Department will monitor all financial
operations. A school district must amend the official budget before exceeding a functional expenditure category,
i.e., instruction, administration, etc. in the total budget. The budget team will decide whether to proceed with the
budget amendment and, if so, will then present the request to the 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
Superintendent or his designate. 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 increase parent and citizen
understanding of Academy revenue sources.
• Certainty - A thorough knowledge and understanding of revenue sources increases the reliability of the
revenue system.
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• 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.
• Equity - The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy
shall seek to minimize or eliminate all forms of subsidization between entities.
• 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 CLASSIFICANTION AND SOURCES. The revenues received by Westlake Academy are classified into
one of three broad categories: Federal, State or Local and come 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 budget and be subject to
appropriation for Academy general operations.
o Westlake Academy Foundation
o House of Commons
o Westlake Academy Athletic Club
o Local Merchants
• Specific Purpose Donations – Funds donated 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
Board of Trustees.
• 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/Retained Earnings
Policy Statements.)
• Avoidance of Operating Deficits - The Academy 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 Superintendent 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 Superintendent or his designate shall undertake periodic staff and third-party
reviews of Academy programs for both efficiency and effectiveness. Where appropriate, privatization and
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contracting with other governmental agencies will be evaluated as alternative approaches to service delivery.
Service delivery which is 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 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 tasks related to insurance,
payroll, etc. Where feasible, G&A costs will be charged to all 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.
• Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment
requirements of State law.
• Salary - The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will
be conducted annually, sampling surrounding Independent School Districts and Charter Schools, to create a
comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of
surveyed schools.
VI. FUND BALANCE
• Fund Balance Reporting - The District shall report governmental fund balances per GASB 54 definitions in the
balance sheet as follows: Nonspendable, Restricted, Committed, Assigned, and Unassigned.
• General Fund Unassigned Fund Balance - The Academy shall strive to maintain the General Fund unassigned
fund balance at 45 days of operation.
• Use of Fund Balance - Fund Balance will be targeted to only be used with Board approval and can be only be
used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures
and equipment), 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. The Board of Trustees shall approve all commitments by
formal action. The action to commit funds must occur prior to fiscal year-end, to report such commitments in
the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal
year-end. A commitment can only be modified or removed by the same formal action.
The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee.
The Board of Trustees shall have the authority to assign any amount of funds. Assignments may occur
subsequent to fiscal year-end.
The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned,
Unassigned
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VII. INTERGOVERNMENTAL RELATIONSHIPS
• Inter-local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of
services, the Academy shall actively seek to work with other local entities in joint purchasing consortium,
sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve
service to its students.
• 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.
VIII. GRANTS
• Grant Guidelines - The Academy 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 Academy 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. 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.
IX. 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 Superintendent and the Board of Trustees. Student roster information will also be included in the quarter
reports submitted to 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.
X. FINANCIAL CONSULTANTS
The Academy employs 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.
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XI. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
The Academy strives 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.
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. Town’s 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 Superintendent or his designate and Academy staff to review the monthly reports
for any discrepancies and report to the Town’s 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 Academy Board of
Trustees, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the
Academy 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 for proposal for audit
services on a periodic basis as deemed appropriate.
• Responsibility of Auditor to Academy Board of Trustees - The auditor is retained by and is accountable directly
to the Academy Board of Trustees and will have access to direct communication with the Academy 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.
XII. 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 set forth in this policy statement.
• Academy Staff Responsibilities - The Superintendent or his designate, 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. Staff will develop and periodically update written internal control
procedures.
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XIII. 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 Academy Board of Trustees. The Academy 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 Academy 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 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:
o The asset is owned by the Westlake Academy
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 a part
of the asset cost. This includes startup 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.
• 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.