City of Rio Vista

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City of Rio Vista
Budget 101 An Overview of Essential Tools
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Role of the Budget
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Purpose of Budget Process

• Accountability
• Planning
• Implementation
• Evaluation
• Information

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Fiscal Accountability
Citys responsibility that budget is in
compliance with public decisions concerning
raising and spending of public moneys

• Adopted budget is the legitimate basis for
  management to spend public funds to meet the
  Citys operational objectives, using all
  resources available and measuring whether the
  City can continue to meet those objectives in the
  foreseeable future.
• In California, the Gann Limit calculation limits
  the tax revenues a municipality can appropriate.
  See Appendix A.

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Operational Accountability
Citys responsibility to report the extent to
which it has met operating objectives efficiently
and effectively, using the resources available
for that purpose, and whether it can continue to
meet its objectives for the foreseeable future.

1. Budget Integration with Financial Reporting
2. Governmental Accounting Requirements

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Planning

• The budget process is used for planning,
  coordinating and scheduling programs to serve
  citizens and community

1. Goals Objectives
2. Preparation
3. Adoption

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Planning Goals Objectives

• City-wide
• Department

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Planning Budget Preparation

1. Distribute Calendar
2. Develop methods, assumptions, support
3. Project department operating expenditures
4. Estimate revenues
5. Project personnel costs
6. Develop cost allocation plan
7. Determine capital project need
8. Prepare Preliminary Budget
9. Prepare Final Budget

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Adoptionrequired by June 30

• Budget Workshops
• Public Hearings
• Council Approval

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Implementation

• Adoption of the budget by the City Council
  authorizes City management to utilize the
  appropriated amounts for the purposes designated
  during the preparation process this is the
  operational phase of fiscal period

1. Legislative authority to implement the budget
   during the fiscal year operational phase
2. Budget policies are incorporated

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Evaluation
In order for management to control operations
within the approved budget levels, a monitoring
system needs to be in place

1. Management periodically monitors spending levels
   budgeted versus actual expenditures
2. City Council reviews operational results at mid
   year budget review and authorizes amendments
   where deemed necessary
3. Financial reports for fiscal period ended are
   prepared and compared with budget

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Information

• A useful, public document of relative importance
  to City Council, management, citizens and other
  interested parties

1. Public requests for information
2. Management spending guide
3. Provides basis for final year end comparisons