the municipal secretary desktop reference manual - Southwestern ...

ANNUAL BUDGET MESSAGE
The annual budget message is a critical part of the budget. The message is a means
which the official responsible for the budget=s preparation can use to highlight various
components of the annual fiscal plan. Although the message is addressed to the governing body,
in reality, it has a much wider audience. It can be a most effective way to inform the media and
various publics of what is planned and at what cost.
There is no “hard or fast rule” as to the types of information which should be included in
a budget message. However, if the message is to be an effective communication tool, the
following subject matters are suggested as appropriate for inclusion in the message:
- jurisdiction=s fiscal position;
- major revenue sources, justifications, impacts and changes;
- expenditure programs, proposed results and reasons for changes;
- problems which are addressed and those still unmet; and
- budget outlook for next several fiscal periods.
An example of a budget message from a small Pennsylvania local government containing
many of the above subject matters appears below.
Budget Message
Municipality of __________
Fiscal responsibility dictates that the municipality provide for the general safety and
well-being of our residents at the least possible cost. This Budget, as with those of recent years,
reflects the board=s commitment to provide outstanding services at an affordable cost.
Through innovative methods and the application of sound management principals, the
municipal roads have been well-maintained, and its recreation facilities expanded, without
commensurate increases in millage rates. Staff productivity has been significantly enhanced
through professionalization, computerization, and by employing other forms of technology.
Public works operations have been improved through the utilization of an expanded equipment
fleet.
This budget affirms the administration's resolve to sustain quality services through
outstanding maintenance of municipal roads and facilities, and to provide for the general safety
of our community.
EXPENDITURES
Within the past five years, and consistent with expenditure patterns in rural
municipalities, primary budget expenditures are road-maintenance-related. A substantial
percentage of this amount is earmarked for employee wages and benefits, which have increased
by 14% from 1991 to 1995. As an employer, a significant cost for the municipality is employee
benefits, which are vital to attracting and maintaining a productive, qualified staff. For many
years, our local government employees had no social security participation or pension plan. In
1991, the first municipal Employee Pension Plan was instituted. In the following years an eye
and dental plan has been added and an HMO offered, with the employee paying a portion of the
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