Nickels and Dimes of the County Budget

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Nickels and Dimes of the County Budget

• 773-5932
• deene.dayton_at_state.sd.us

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Budget Timeline

• June gather data from departments
• July put provisional budget together
• August publish provisional budget
• Sept budget hearing on first Tuesday
• Before Oct 1 adopt the budget

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Balanced Budget

• Each fund has two sides to its budget
• Revenue side and expenditure side

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Budget Detail

• Three expenditure levels
• Fund General
• Dept Sheriff
• Object - Salary
• Supplies
• Utilities

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Budget Detail

• Revenue side has three distinct areas
• Cash applied (next slide)
• True revenues
• Transfers - In

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Cash Applied

• Cash applied is often thought of as negative or
  described as a structural deficit.
• But if properly managed it can be an annual
  budget tool.
• Four factors give rise to cash applied, 1.
  statutory 5 fudge, 2. 5 contingency, 3. unspent
  expenditure budget, and 4. over-collected revenues

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Contingency

• Contingency
• Department of only the General Fund
• May not exceed 5 of total budget
• Transferred by resolution
• The contingency line is the only budgetary line
  that may be transferred

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Lets Save Up

• Capital outlay accumulation
• SDCL 7-21-51
• Extraordinary in nature
• Exceeds fund ability of a single year
• 84 months
• 5 million per purpose

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Increasing the Budget

• Before overexpending a budget a county may-
• Contingency Transfer - resolution
• Formal Supplement notice, hearing
• Auto Supplement motion
• (sale of surplus property results in revenue, not
  a change in the amount of the budget)

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Increasing the Budget

• Addressing overexpenditures early allows for two
  choices
• Reduce spending
• Increase budget

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Monitoring the Budget

• Monitoring the budget WHO
• Head of Department - daily
• County Auditor provides status
• Governing Board - monthly

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Monitoring the Budget

• Monitoring WHY
• Deterrent to fraud
• Statutory compliance
• Pulse of the county where are we at and where
  are we going

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End of Year???

• Year end cutoff
• Cash Basis when paid
• GAAP Basis when goods delivered or services
  rendered
• Communicate deadlines with outlying departments

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Tomorrows Budget

• Why care about the future?
• How long does it take to get
• An opt out dollar
• A statutory change to license plate revenues
• Out of a fiscal hole

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Future Planning

• How far ahead do I project?
• Too far and its accuracy is questioned, we are in
  a world of change
• Going a year or two does not present much of a
  trend

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Revenue Elements

• Cash Applied roll from one year to next
• Property Tax CPI plus growth
• License Plate Fees Static?

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Revenue Elements

• Property Tax
• Last years levy in dollars
• Increase for CPI
• Increase for growth due to new construction

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Revenue Elements

• Opt Out Asking to tax more than statutorily
  allowed
• Resolution before July 15th
• Notice
• State how much and how long
• Schools are different

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Revenue Elements

• Prisoner Care Jail size, rate increases
• Federal Grants some are annual
• Interest Earned ask Bernanke

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Expenditure Elements

• Even though county expenditures are budgeted by
  fund and department, consider developing those
  figures by viewing expenditures on a segment by
  segment basis.

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Expenditure Elements

• Salary how much, how many, turnover
• Health Insurance
• Supplies analyze by type for hwy, fuel,
  culverts, asphalt, road oil, paper clips, etc.

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Expenditure Elements

• Debt Service payment schedules
• Insurance
• Repairs and Maintenance

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Expenditures Elements

• Capital Outlay
• Technology
• Vehicles
• Buildings
• Other Equipment

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Budget Indicators

• Budget indicators
• Is the cash balance declining?
• Is the debt load increasing?
• Is the deferred maintenance on roads, bridges and
  buildings increasing?

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Budget Flow

• 2009
  2010
• Beg Balance 100 110
• Revenues 100 100
• Expenditures 90 95
• End Balance 110 115
• Is it bad if the ending balance grows each year

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Reserves

• How much should you have????

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Reserves

• Consider the following
• Risk of large unforeseen expenditures
• Capital Accumulations
• Other future capital needs
• Cash Flow (Jan May)
• Risk of decreasing revenues

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Reserves by Entity Type

• CITY, COUNTY, SCHOOL
• Cash Flow
• Large Unforeseen Expenditures
• Capital Needs
• Even within one type of government.were not all
  the same