Table of Contents ADOPTED BUDGET
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General Budget Policies The Town of Little Elm, Texas financial policies set forth the basic framework for the fiscal management of the Town. These policies were developed within the parameters established by applicable provisions of the Texas Local Government Code and the Town of Little Elm Town Charter. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances or conditions. A. Annual Budget 1. The fiscal year of the Town shall begin on the first day of October each year and shall end on the thirtieth day of September of each year. 2. On or before the fifteenth day of August of each year, the Town Manager shall submit to the Town Council a balanced budget of the revenues of the Town and the expense of conducting the affairs thereof for the ensuing fiscal year. The Town is committed to a balanced operating budget under normal circumstances. Any deviations from a balanced budget are to be presented with full disclosure and justification. Fund Balance (reserves) can be used to balance the budget (see section on Fund Balance). The Budget as submitted by the Town Manager shall be legally adopted for all governmental fund types of the Town by Ordinance. 3. The Town Manager leads the Budget Process with the Mayor and Town Council, Chief Finance Officer, Town Departments, and the public participating during various stages of the budget process. Throughout the process, the Town Manager provides the Town’s Department Heads with policy direction in formulating the budget and discusses areas of concern with Town Council. 4. Role of Department Heads and Directors. Each Department Head and Director is responsible for the effective, efficient, and economical use of all resources made available to his or her department or division. After direction from the Town Manager, all department and division managers are given formal budget packets to complete electronically. Once packets and budgets are submitted electronically to the Finance Department, the Chief Finance Officer and Town Manager reviews the Department baseline requests and will determine whether changes are required based on funds availability and priorities. Interviews with Department Heads and Directors are conducted with the Town Manager and Finance to review budget requests and justifications for new programs or expansion of programs. Department Heads and Directors must present with their budget submissions base budget justifications along with supplemental request explanations for operational expenses as well as requests for additional personnel. These requests are weighed against financial constraints. 5. Town Manager’s Proposed Budget. Once the budget reviews are completed and revisions are made to the requested budget, the result becomes the Town Manager’s proposed budget of programs and services. The Town Manager’s proposed budget is filed with the Town Secretary and distributed to Town Council to set in motion work sessions, public hearings and ultimate approval. The Town Manager’s proposed budget must be an itemized estimate (by line-item) of the expense of conducting each department, division, office and/or fund. The Town Manager’s proposed budget must be submitted to Town Council with a concise summary of the budget summarizing major changes in priorities or service levels from current years and the factors leading to those changes. Additionally, the Proposed Budget must include: Comprehensive Financial Management Policy Updated July 2020 TOWN OF LITTLE ELM 60
