Financial Accountability
One of the major components of the Town of Westlake’s vision relates to financial accountability. We believe that being good financial stewards requires open and honest government that manages its resources with wisdom and prudence. Prudent financial management consists of three elements:

• Expenditure controls
• Forecasting
• Resource maximization

The Town’s financial policies and processes have been developed to address these first two elements. The third element is evidenced in the annual five-year financial forecast that is prepared in conjunction with the town budget as well as other forecasts and reports that are prepared throughout the year.

Monitoring the Economic Climate
Financial forecasting requires continual monitoring of the economic climate including the assessment of both internal and external risks as well as market analysis. The purpose of a forecast is to provide a general picture of the town’s financial condition over time, based upon conservative assumptions. The term "conservative" used in this context of financial forecasting means that revenues are generally forecasted at levels slightly lower than what might eventually be realized, while expenditures are often forecasted using slightly higher rates of inflation. This is done in an effort to minimize the town’s exposure to financial risks associated with any funding decisions that are made based on these financial projections.

Purpose Behind Financial Forecasting
The purpose of the financial forecast is to provide realistic expectations with regard to revenues and expenditures that allow the Town Council and other officials to make informed decisions with regard to the town’s resources. The five year forecast in particular serves as a type of financial early warning system that provides the Mayor and council the time to make strategic decisions and course corrections as needed.

Please click here to view the current Five-Year Financial Forecast.