Iowa’s City Budgeting System Patrick Callahan Snyder & Associates July 22, 2013 Timing is everything When is it all over? When does it start? Does your City.
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Transcript Iowa’s City Budgeting System Patrick Callahan Snyder & Associates July 22, 2013 Timing is everything When is it all over? When does it start? Does your City.
Iowa’s City
Budgeting System
Patrick Callahan
Snyder & Associates
July 22, 2013
Timing is everything
When is it all over?
When does it start?
Does your City have a policy and
procedure on budget preparation and
monitoring?
Calendar of events
Example
Let’s do it backwards first
Schedule of Council Meetings
Availability of other people such as
departments, boards, committees
The Time Table
Count back from March 15
Copies available – 20 days prior
to hearing
Public hearing
Start early –less stress
Consult department heads
Iowa League of Cities
Annual mailing to help with schedules and
calculations
Budget Training Sessions
Mentors
Department of Management
Ted Nellesen
([email protected])
Web Site Department of
Management
DOM Information - website
County Auditor Information
Taxable valuations – calculate
levies
Assessed valuations – G.O.
Debt limit
TIF valuations and projections
(go to www.dom.state.ia.us)
Line 3a
Line 2a
Line 4a
Line 2B
Line 3b
What is your process?
City Administrator/Manager?
Budget Committee
Citizens
Council
Other taxing agencies
County
Community School
Community College
Extension Offices
Area schools
State
Council – FINAL DECISION
Who will put it all together
That be you!
Isn’t that in the small print?
Need a Quarterback
City Council’s Goal Setting
Session
Capital Planning (more later)
Does it tie to the Council’s goals
How far out? 5 years-10 years?
Funding sources
Cash on hand
Local Option Sales Tax
Bonds – G.O. and Revenue
Enterprise Revenues
Gifts/Grants
CIP Levy
Where does the other money
come from?
State Legislature
Authority for Property Taxes
Revenue Sharing - RUT
Grants
Elections – LOST & Hotel/Motel
Special Assessments
Where does the money come
from? (Cont)
Federal government
Revenue Sharing
Grants
Local governments
County
911 Commissions
Fire districts
Others
Where does the money come
from? (Cont)
Our Citizens
Licenses
Permits
User Fees
Swim Pool
Golf course
Recreation Fees
Franchise Fees
Fines
User Fees - Utilities
Water
Sewer
Storm Sewer
Electric & Gas
Garbage
Cable TV/Internet
Other Sources
Gaming revenues
Refunds
Interest on investments
Rent or sale of property
Go to the source
Budget Excel document
GREAT improvement over the
years
GREAT resource
Let’s see--
Line Item Budget-Workpapers
Program – department or
service
List of expenditures
Previous fiscal years
Current budget year
Year-to-date numbers
Proposed budget
Adopted budget
Where Does the Money go?
The Nine Programs
State Budget Forms – Iowa
DOM
(Partial List – Most common
services)
Public Safety Services
Police/jail
Fire
Animal control
Emergency management
Flood control
Public Works Services
Streets and bridges
Parking
Street lights
Traffic control
Snow removal
Street cleaning
Health & Social Services
Health regulation inspection
Water, air and mosquito control
Cultural & Recreation
Library
Museum, band and theatre
Parks
Recreation
Cemetery
Community center
Community & Economic
Development
Community beautification
Economic development
Planning & Zoning
General Government
Mayor, Council, and City
managers
Clerk, Treasurer and finance
Election
Legal services
City hall
Tort liability
Debt Service
Principal payments
Interest payments
Bond registrar fees
Capital Projects
Construction/building projects
TIF capital projects (or as
Special Revenue fund type)
Capital Equipment (now allowed
in this area as per GASB 54)
Business
Activities/Enterprises
Water
Sewer/wastewater
Landfill/garbage
Cable TV/Internet
Storm sewer
The Types of Funds
General
Special revenue- LOST, RUT,
TIF, employee benefit levies
Debt service
Capital projects
Permanent
Enterprise
Non-budgeted funds (internal service)
Budget Form 631 E P1
Budget Form 631 E P2
Budget Form 631 A P1
Budget Form 631 A P2
Municipal Expenditures
Personal services – salary &
benefits & related expenses
Services & commodities
Capital outlay
Debt payment & interest
Transfers
The Budget Numbering
System (City Clerk’s
Handbook)
Revenues –fund, function, type
& source
Expenditures – fund, function &
object
Sources of Information
Estimating Expenditures
City department heads
City staff & finance officer
Previous fiscal year data
City audit reports
Iowa League of Cities –budget
report
Utility Providers
More Sources of Information
Estimating Expenditures (con’t)
Insurance agents
Vendors and suppliers
Consumer price index
Existing contracts (union
contracts, maintenance
agreements, leases, township and
other 28E agreements)
Sources of Information
Estimating Revenues
County auditor –taxes & TIF
Iowa League of Cities – budget
report
City department heads
City finance officer/treasurer
Previous fiscal year
Budget Form 631 D
Budget Form 631 B
Property Tax Levies
Regular – general fund levy:
$8.10 limit
Non-voted permissible levies
Liability, property & self insurance
Local Emergency Management
Property Tax Levies
Voted permissible levies
Public library support
Bands, vocal
CIP Levy
Property Tax Levies (con’t)
Ag Levy – $3.00375 Limit
Special revenue levies
Emergency – (if at $8.10)
Police & fire retirement (411)
FICA & IPERS
Employee benefits (as defined by
Administrative Rules)
Property Tax Levies (con’t)
SSMID
Debt service levy
Capital project levy (voter
approved)
Budget Form 635.1
Budget Form 635.1 (bottom)
Fund Balance Reminders
Council Resolution
Check audit reports
Annual financial report
Budget Form FBW
The “Fine Art” of Balancing
the Budget
Reduce expenditures
Increase revenues
Spend down cash resources
City staff recommendations
City Council – ranking
City Council – final decision
The appeal process - $8.10
Watch calendar requirements for appeal
The Public Hearing Process
Budget forms completed
Prepare notice of public hearing
& budget estimate
Publication 10/20 day rule
Copies available – 20 days prior
to the hearing
Budget Form 631.1
Go to the handouts
Two different handouts
1) A completed budget
2) Line item budget workpapers
Are we done yet?
No
Now we need to make it
understandable.
Graphs
Summary of various items
Newsletters
Public meetings
What kinds of graphs?
Category Graphs
Personnel
Supplies
Capital
Debt
Historical
What does this year look like
compared to prior year(s)
Newsletters
Introductory letter with major
items
What projects will be included in
the next year(s)
Any major changes in
personnel, programs or
facilities?
Budget Form 635 2A
Finishing up
Certification Resolution
E-filing to DOM
Submission to GFOA?
Take a vacation you deserve it
Finishing up
Then monitor it all year long
Monthly reports to the Council
Actual to budgeted
Cycles for expenditures and
revenues
The Budget Protest
Budget is the backbone of City
Finance
It is the plan
It is the guide
It is the control
And then there are amendments
Budget Amendments
PRIOR TO EXPENDITURE
Changes
Weather
Priorities
Personalities
It is still the plan
It is still the guide
But it is the law!
Due May 31
Resources & Training
Iowa League of Cities- budget
report
Iowa League of Cities – budget
workshop
Iowa handbook for city clerks &
finance officers –Chapters 7, 11
& 14
Resources & Training (con’t)
Iowa policy leaders handbookChapter 6
Iowa Department of
Management Web site
City clerk’s – nearby
communities and regional
clerk’s meetings
Now let’s do a workout!