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