Municipal Budget Process

Governmental Procedures and Structure Committee

Taxation and Budget Reform Commission

August 10, 2007

By: Diane Reichard, CPA, CGFO

Functions of Budget

Within the Finance/Accounting

Department or reports to City Manager Prepares revenue forecasts Prepares budget document & CIP Monitors budget spending

and position control Grant administration

Key Players

City Manager/Commission

Budget OfficeMedia/Web

Departments

Citizens

Budget Office

• Coordinates all key players

• Communicates Council’s goals & priorities

• Provides direction to departments

• Understands the needs & wants of citizens

• Presents document to all

Chief Executive Office

• Weekly meetings to understand goals and direction

• Establish priorities

• Keep calendar moving

Calendar

TRIM Deadlines

May 31st – Property appraiser

June 30th – Updated Very important to follow

deadlines Budget 95%

Internal Departments

• Directors/Liaisons

• Understand balance between City Manager

directives and available sources

• Assisting Departments

• Accounting (revenue projections, grants)

• Human Resources (employee information)

• Planning (Capital Improvement Plan)

• Public Works (CIP & infrastructure)

External Departments

• Citizens

– Advisory groups

– Civic organizations

• CRA districts

• State-revenue estimates

I. Develop Your Plan

II. Work Your Plan

III. Present Your Plan

Plan, Plan, Plan and one thing for sure

“Things will change.”

Budget Process

MayMarch

Finance analyzes & projectsrevenue estimates

Finance and City Manager

prepare proposed budget.

April

City Manager meets with

Departments.

June May

City Managersubmits proposed budget

to Council and releases to public.

July

City Councilholds budget workshop.

August

City Councilholds public hearings

to adopt budget.

September

BUDGET KICK-OFF

July

City Council holds goal-setting

session.

Departments submitbudgets to Finance.

I. Develop Your Plan

Deadlines

Budget Responsibility

Details

Deadlines

Provide date/ responsible party/ task Check list Refer to NACSLB 8.1 & other guidance Narratives, numbers,

personnel summaries,

performance measures,

and numbers must align

Budget Responsibility

• Revenue = Appropriation • Fiscal Year = October 1 – September 30• Compare programs to revenue• Departments are responsible to monitor by category

•Personal Services•Operating Expenses •Capital Outlay

• Enter line items

Details

• Details are important – list with amounts

• Personnel - # of positions evaluated

• Changes are documented

• Plan diligently and plan for change

• Monitor monthly

•Capital outlay•Specific item and amount

•Request to change or add if not in budget

•Delayed if funding is tight

II. Work Your Plan

• Manage the calendar

• Adhere to deadlines

• Utilize resources

Manage the Calendar

• Stay Focused

• Allow time for specific tasks

• Depend on those who have information

• Revenue projections

• Bond documents

• Interest Calculations

• Debt Service Requirements

Adhere to Deadlines

• Beware of changes

NOW or LATER

• Decide when to STOP

Utilize Resources

• Recommended Budget Practices

• Internet for example

• Budget Policy

• Revenue sources

• Enterprise funds – outside agencies

III. Present Your Plan

Organize thoughts

Simple to decipher

Easy to understand

Conclusion

Budget Function

• The way the budget function operates

has a wide-ranging effect on the

budget itself• 5 Dimensions:• Financial

• Political

• Planning

• Communication

• Managerial

Knowledge

Government Structure Accounting system Budget Process Operating Departments Legal & Regulatory Impacts

Skills

People/Interpersonal networking persuasion negotiation interviewing oral/written communication

Analytical complex problem into parts and solve proficiency with tools and techniques

Ability

Creative/ Innovative

Organize tasks/ juggle priorities

Follow through with commitments

Good judgment (fiscal/policy/political)