Municipal Budget Process

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Municipal Budget Process

• Governmental Procedures and Structure Committee
• Taxation and Budget Reform Commission
• August 10, 2007
• By Diane Reichard, CPA, CGFO

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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

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Key Players

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Budget Office

• Coordinates all key players
• Communicates Councils goals priorities
• Provides direction to departments
• Understands the needs wants of citizens
• Presents document to all

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Chief Executive Office

• Weekly meetings to understand goals and
  direction
• Establish priorities
• Keep calendar moving

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Calendar

• TRIM Deadlines
• May 31st Property appraiser
• June 30th Updated
• Very important to follow deadlines
• Budget 95

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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)

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External Departments

• Citizens
• Advisory groups
• Civic organizations
• CRA districts
• State-revenue estimates

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10

• Develop Your Plan
• Work Your Plan
• Present Your Plan

Plan, Plan, Plan and one thing for sure Things
will change.
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Budget Process
March
April
May
Finance analyzes projects revenue estimates
BUDGET KICK-OFF
City Council holds goal-setting session.
May
June
July
Finance and City Manager prepare proposed
budget.
City Manager meets with Departments.
Departments submit budgets to Finance.
July
September
August
City Manager submits proposed budget to Council
and releases to public.
City Council holds public hearings to adopt
budget.
City Council holds budget workshop.
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I. Develop Your Plan

• Deadlines
• Budget Responsibility
• Details

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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

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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

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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

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II. Work Your Plan

• Manage the calendar
• Adhere to deadlines
• Utilize resources

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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

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Adhere to Deadlines

• Beware of changes
• NOW or LATER
• Decide when to STOP

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Utilize Resources

• Recommended Budget Practices
• Internet for example
• Budget Policy
• Revenue sources
• Enterprise funds outside agencies

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III. Present Your Plan

Organize thoughts Simple to decipher Easy to
understand
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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

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Knowledge

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

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Skills

• People/Interpersonal
• networking
• persuasion
• negotiation
• interviewing
• oral/written communication
• Analytical
• complex problem into parts and solve
• proficiency with tools and techniques

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Ability

• Creative/ Innovative
• Organize tasks/ juggle priorities
• Follow through with commitments
• Good judgment (fiscal/policy/political)