ORIENTATION 2004 Municipal Finance

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ORIENTATION 2004Municipal Finance

• Presented by
• Greg Herrett, CA, Treasurer, Town of Amherst
• Dale MacLennan, CA, Director, Financial Services,
  Halifax Regional Municipality

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Who are the Players and what are their roles?

• Council, with support from Senior Staff, approve
  services and related service levels that they
  wish to deliver in their municipality.
• Chief Administrative Officer
• Directors/Department Heads/Finance

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Provincial Government Roles

• Service Nova Scotia Municipal Relations the
  Municipal Government Act (MGA)
• Minister approves all capital borrowing
• All commitments over 100,000
• Municipal advisors
• Municipal Finance Corporation
• Municipal Accounting Reporting Manual (MARM)

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MGA

• Everything starts here no authority to spend
  unless it says so here or in other legislation.
• Explains why some good ideas and real community
  needs often cannot be directly addressed by the
  municipal unit.

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Individual Council Policies other guidance

• Under the MGA, Council may develop individual
  policies to deal with specific financial issues.
  May include tax collection policy, tax sale
  policy, investment policies, purchasing policies,
  etc.
• Best Practices Municipal Finance Capacity
  Building Committee

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Not this way!
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Setting a budget

• Start with a plan (business plan, priorities,
  service levels)
• Must do versus Want to do
• Why not first? There will never be enough
  must prioritize choices must be made so how?

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Council must set direction
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Setting the budget

• What are services that are required and desired
  based on your communities needs.
• Determine the base revenue assumptions
• Calculate the tax rates and fee levels required
  to deliver the required and desired services
• Is there a gap between the current rates and
  those required?

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Setting the budget

• How to Bridge the gap?
• Go back to service priorities
• Go back to revenue assumptions
• Listen to your community
• Make choices
• Set the rate

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How it might feel..
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• So the budgets finished Or is it?

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Budget Performance

• Regular reports to Council public
• Must monitor results closely any deficit must
  be absorbed in the very next fiscal year.
• Monitoring performance against budget determines
  when changes may need to be made during the year.

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Elements of the Municipal budget

• Operating Budget
• Capital Budget
• Reserves Budget

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Submitting information to SNSMR
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Municipal revenues