Summary of Policies

FY 2021-2022 Annual Budget

Budgetary and Financial Policy Guidelines

The City of White Settlement's financial policies compiled below set forth the basic framework for the overall fiscal management of the City. The City maintains and updates financial policies as needed to govern the overal financial management and health of the City. Policies include:


Several of the Financial Policies have direct impact on the construction of the budget:


Balanced Budget - The City aims to maintain a balanced budget and does not use long-term debt to fund short-term or operational expenses.

  • General Fund - Scenario 3 : Revenues + Appropriated Fund Balance = Expenditures
  • Water & Sewer Fund - Scenario 3 : Revenues + Appropriated Fund Balance = Expenses
  • Debt Service Fund - Scenario 2 : Revenues > Expenditures

Operating Reserves - The City aims to maintain an operating reserve of at least equal to 40% (8% Debt Service) of budgeted annual operating expenditures, excluding debt service and transfers.

  • General Fund - 347 Days or 95%
  • Water & Sewer Fund - 361 Days or 99%
  • Debt Service Fund - 88 Days or 24%

Debt - The City will balance the needs between debt financing and "pay-as-you-go" methods and maintain a minimum 1.25 debt coverage ratio.

  • No Revenue Bonds = Not Applicable

Liquidity - The City maintains a liquidity reserve to ensure adequate cash is on hand to cover expenses in those months where expenses outpace revenues. The majority of the City's revenues are received in November through February through property taxes.

  • < 1 Day - $36,833,735 or 70%
  • 1 Day > 1 Year - $11,138,658 or 21%
  • 1 Year > 2 Years - $4,013,017 or 8%